The Directorate General of Foreign Trade (DGFT) has notified the amendments under interest equalisation scheme.
The DGFT pointed out that Trade and Industry is drawn towards the extension of Interest Equalisation Scheme (IES) up to 30.09.2024.
The annual net subvention amount is capped at Rs 10 Cr per IEC for a given financial year, accordingly a cap of Rs. 5 Cr per IEC for MSME Manufacturers is imposed till 30.09.2024 for the financial year starting from 01.04.2024.
The DGFT clarified that for Manufacturer Exporters and Merchant Exporters the cap is Rs. 2.5 Cr till 30.06.2024.
Interest Equalisation Scheme
The Interest Equalisation Scheme helps exporters from identified sectors and all Ministry of Micro, Small and Medium Enterprises (MSME) manufacturer exporters to avail export credit at competitive rates at a time when the global economy is facing headwinds.
Under the scheme, for pre and post-shipment rupee export credit, the Exporters get subsidies.
Currently, the rate of interest equalisation is 2 percent for some manufacturers and merchant exporters for 410 identified products and 3 per cent for MSME manufacturers.
Trade Notice No. 17/2024-2025
Date: 17/09/2024
