Cabinet note on interest equalization scheme for exporters soon

New Delhi, In a move that will further boost exports from the country, the government would soon come up with the interest equalization scheme offering pre and post shipment credit.
“Interest equalization is at advanced stage of finalization within the government. We hope that very soon we will be able to push out a Cabinet note on that also,” Commerce and Industry Minister Piyush Goyal said.
“Of course, interest rates have significantly fallen since the old scheme was announced. So we have to calibrate it to current requirements and current interest rates,” he added while addressing Chiefs of Export Promotion Councils (EPCs), Commodity Boards and Authorities and other stakeholders in Mumbai on Thursday.

Interest Equalization Scheme on pre and post shipment rupee export credit was introduced in 2015 providing interest subsidy of 3% for labour intensive and MSME sectors. The rate was increased to 5% for MSME sectors in November, 2018 and merchant exporters were covered under the scheme later.
With directions from the government, RBI had in June extended the scheme for three months till September 30, 2021.

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