interest equalisation scheme

The Reserve Bank on Tuesday extended the interest equalisation scheme for pre and post shipment rupee credit for MSME exporters till March 2024 with the objective of boosting outbound shipments.

The Reserve Bank of India (RBI) on Tuesday issued modified norms on Interest Equalization Scheme for export credit after the extension of the scheme till March 2024 by the government.

The commerce ministry in India is expected to seek an extension of the interest equalisation scheme for five more years in the upcoming Budget. This scheme assists exporters in obtaining competitive rupee export credits, particularly benefiting MSMEs during challenging economic times. Exporters and organizations like FIEO are supporting the extension, emphasizing its importance for maintaining competitiveness.

Exporters in India are urging the government to reinstate benefits like the interest equalisation scheme and RODTEP for SEZ and export-oriented units. This comes in response to a 26% levy imposed on Indian exports to the US. Key sectors affected include marine products, dairy, medical equipment, machinery, and carpets. Suggestions include prioritizing these sectors and helping exporters diversify markets.

The Union Cabinet on Friday approved an additional allocation of Rs 2,500 crore for the continuation of interest equalisation or subsidy scheme on pre- and post-shipment rupee export credit up to June 30 next year. This would help exporters from identified sectors and all MSME manufacturer exporters to avail rupee export credit at competitive rates at a time when the global economy is facing headwinds. The decision in this regard was taken by the Union Cabinet chaired by Prime Minister Narendra Modi.

The government is likely to introduce measures to enhance financial support for exporters and small businesses in the upcoming Budget. This includes options like collateral-free lending and a pending interest equalisation scheme. The aim is to alleviate financial challenges faced by these sectors, which are crucial for economic activity and employment generation.

The Reserve Bank on Thursday said a scheme providing interest subsidy for post and pre-shipment export credit has been extended by three months till September, a move that will provide relief to exporters.

New Delhi, Aug 1 () The government today extended the Concessional Financing Scheme (CFS) for five years till 2023 to support Indian entities bidding for strategically important infrastructure projects abroad.

New Delhi, Jan 2 () The government Wednesday decided to provide 3 per cent interest subsidy to merchant exporters to enhance flow of funds for them with a view to boosting outbound shipments. The decision was taken by the Cabinet Committee on Economic Affairs.

New Delhi, Feb 26 () Commerce and Industry Minister Suresh Prabhu Tuesday made a case for extending interest subsidy benefits to more products from the chemical sector to boost exports.

Exporters in India are preparing to seize potential opportunities in the US market across sectors like textiles, leather, chemicals, and toys, as the US looks to reduce dependence on China. Enhanced promotion, financial support, and partnerships with American trade bodies are seen as pivotal for success.

The escalating geopolitical tension may have implications for the country's exports in the first quarter of 2024-25 as it is likely to impact global demand, apex exporters body Fieo said. The global uncertainties caused by the continuing war between Russia and Ukraine have impacted India’s outbound shipments in 2023-24, which recorded a decline of 3.1% to $437 billion. Imports too dipped by over 8% to $677.2 billion.

New Delhi, Mar 7 () Department of Economic Affairs (DEA) in the finance ministry did not support the proposal for increase in the interest subsidy from 3 per cent to 5 per cent on exports, the commerce ministry informed the Rajya Sabha today.

Disputes relating to wealth, securities transaction, commodity transaction taxes and equalisation levy will not be covered under 'Vivad Se Vishwas' amnesty scheme.

Industries body in Punjab urged the state government to introduce a freight equalisation scheme that will compensate exporters against extra transportation charges.