Commerce Ministry will Soon Announce Modified Interest Subsidy Scheme for Exporters 

The Cabinet has approved the interest subsidy or equalization scheme, and the commerce ministry would “very” soon notify the exporters’ community of the “enhanced and updated” scheme, a top government official said on Wednesday.

Exporters have asked for the scheme to be extended. This scheme provides them with a subsidy for pre- and post-shipment rupee export credit.

“The cabinet has adopted the interest equalization programme. It’s there, and it’s turned on. We will notify you as soon as possible. It’s been tweaked and enhanced. B V R Subrahmanyam, the commerce secretary, told reporters, “It exists and it has not been cancelled.”

According to budget documents, Rs 2,621.5 crore has been set out for the scheme in fiscal year 2022-23. In the amended budget for 2021-22, it was Rs 3151.15 crore.

In addition to the large arrears that the ministry discharged last year under various export promotion schemes, the secretary said the initiative will be another shot in the arm for the exporters’ community.

The Reserve Bank of India (RBI) extended the interest subsidy plan for post- and pre-shipment export credit until September 2021 in July 2021.

To encourage the MSME sector’s exports, the interest subsidy was increased to 5% from 3% in November 2018. Later, the government expanded the scheme to include additional merchant exporters, allowing them to get interest equalization at a rate of 3% on credit for the export of specific products.

Overall, he claimed, the Budget is “most” exporter friendly.

The country will meet its $400 billion export target this fiscal year, according to the commerce secretary.

“We’ve gone from a $300 billion hole to a $400 billion hole,” he explained.

He went on to say that the ministry will confer with export promotion councils and Indian embassies around the world to determine the next aim.

“There will be three rounds of consultations, and the (commerce) minister may reveal what will go to the (next) anticipated goal around March 15,” he said.

Gems & jewelry, leather, handicrafts, textiles, engineering, and aquaculture are just a few of the industries that have profited greatly from it.

Exports have already surpassed $336 billion in the first quarter of current fiscal year, setting a new high. The ministry’s goal for this fiscal year is $400 billion.

Previously, the country’s exports totaled $330 billion in 2018-19.