- Government to provide 2.5-3% subsidy under Interest Equalisation Scheme for exporters
- Scheme details to be announced next week with a cap of Rs 50 lakh per exporter yearly
- Part of Rs 25,060 crore Export Promotion Mission approved by Union Cabinet in November
The government is likely to provide subsidy benefits in the range of 2.5 to 3% under the Interest Equalisation Scheme to exporters in certain sectors for pre- and post-shipment credit, according to an official.
The scheme details are expected to be released next week. The official also said that the annual benefit may be capped at Rs 50 lakh per exporter. The scheme is part of the Rs 25,060 crore Export Promotion Mission (EPM) approved by the Union Cabinet on November 12.
It helps exporters from identified sectors to avail of rupee export credit at competitive rates at a time when global trade is facing headwinds. Exporters get subsidies under the Interest Equalisation Scheme for pre- and post-shipment rupee export credit. The scheme was started on April 1, 2015.
The exporters have been demanding the resumption of the scheme. According to them, export credit in countries they are competing with is 2-3%, while in India, it ranges from 8-12%.
The scheme costs the government around Rs 3,200 crore a year. In 2023-24, Rs 3,700 crore were spent on it. The scheme was earlier implemented by the RBI through various public and non-public sector banks that provide pre- and post-shipment credit to the exporters. It was jointly monitored by the Directorate General of Foreign Trade (DGFT) and the RBI through a consultative mechanism.
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