The Ministry of Commerce in India is gearing up to seek an additional five-year extension of the Interest Equalisation Scheme on pre- and post-shipment rupee export credit to bolster the country’s exports, as revealed by an official statement. The current scheme, set to expire on June 30, has received positive feedback from exporters, prompting the government’s move to revamp and prolong its duration. Recently, the Union Cabinet granted an extra allocation of Rs 2,500 crore to sustain the scheme until June 2024. This financial injection aims to bridge the funding gap and ensure the continuation of support for exporters facing challenges in the global market.
The scheme, initiated in 2015, provides vital interest equalisation benefits to eligible exporters, helping to maintain their competitiveness on the international stage. With the extension of this scheme, Indian exporters can look forward to continued support in navigating the complexities of the global economy.
India’s export industry has seen promising growth, with February marking a notable increase in exports, particularly in engineering goods, electronics, and pharmaceutical products. Despite challenges in the export sector in recent years, the country’s efforts to support its exporters through schemes like the Interest Equalisation Scheme have contributed to maintaining a strong foothold in the international market. As the scheme receives further attention and resources, exporters remain optimistic about their ability to thrive and contribute to India’s economic growth.
