The Union government is considering a relaunch of the Interest Equalisation Scheme, which is likely to be brought back within April, providing potential relief to exporters amid the reciprocal tariffs imposed by US President Donald Trump, according to sources.
In a meeting with Commerce Minister Piyush Goyal and other senior officials, exporters said that they were looking for an extension or a fresh relaunch of the Interest Equalisation Scheme, with a 5% subsidy as against 3% previously. The previous IES ended on Dec. 31 last year and was crucial in giving subsidy on pre-shipment and post-shipment export credit to the micro, small and medium enterprises.
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Officials are said to be seriously considering a relaunch of this scheme. However, the government is not willing to providing any other fiscal relief, the sources said on the condition of anonymity.
Trump has announced a 10% baseline tariff on all countries, and a 27% duty on Indian imports during his speech at the Rose Garden on "Liberation Day" on April 2.
Exporters has also demanded export credit guarantee coverage for shipments headed to newer geographies, since diversification of exports is underway. There is a higher incidence of delays in payments in certain new geographies and are considered risky, for example, West Africa and parts of Latin America.
Exporters have also pitched for a fresh rollout for the Market Access Initiative. This scheme has currently been subsumed in the Rs 2,250-crore Export Promotion Scheme, which was announced in this years' Budget.
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