The Union Cabinet has approved an additional allocation of Rs 2500 Cr for continuation of Interest Equalisation Scheme till 30th June 2024.
- This would help exporters from identified sectors and all MSME manufacturer exporters to avail pre and post shipment Rupee export credit at competitive rates.
- The scheme shall be implemented by RBI through various Public and non-Public Sector banks who provide pre and post shipment credit to the exporters.
- The Scheme is jointly monitored by DGFT and RBI through a consultative mechanism. The scheme is primarily meant for the labour intensive sectors.
- The present proposal is meant for exports by merchants and manufacturer exporters of identified tariff lines and MSME Sector manufacturer exporters. Increase in exports from these employment intensive sectors and MSMEs would lead to generation of employment in the country.
- The intended target beneficiaries include all MSME manufacturer exporters and non-MSME exporters of certain identified sectors belonging to 410 tariff lines at four digit level.
- Government of India had announced the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit to eligible exporters.
- The Scheme started on April 1, 2015 and was initially valid for 5 years upto 31.3.2020. The Scheme has been continued thereafter, including one year extension during COVID, and with further extensions and fund allocations.
- Currently the Scheme provides an interest equalisation benefit at the rate of 2% on pre and post shipment Rupee export credit to merchant and manufacturer exporters of 410 identified tariff lines at 4 digit level and 3% to all MSME manufacturer exporters
