Five-yr extension expected for export credit scheme
India is expected to extend a key support scheme for export credit to boost its export sector, which has been hit hard by a slowdown in developed countries. The commerce and industry ministry has proposed an extension of the interest equalisation scheme beyond June 30, providing a 3% benefit for manufacturer micro, small and medium enterprises (MSME) and a 2% incentive for exporters of 410 identified tariff lines.
The Centre is likely to extend a key support scheme for export credit to enhance competitiveness of India's export sector, which was hit hard by slowdown in the developed countries, said people familiar with the matter.
The upcoming budget could extend the scheme for pre- and post-shipment rupee export credit by five years, they said. The commerce and industry ministry has proposed an extension of the interest equalisation scheme beyond June 30, its sunset date, wherein manufacturer micro, small and medium enterprises (MSME) get 3% benefit and exporters of 410 identified tariff lines get 2% incentive. "The scheme is in place till June 30. There could be some small changes but the broad contours will remain the same," said an official, who did not wish to be identified, adding that the finance ministry will take a final call on the proposal. The government has allocated Rs. 9,538 crore to the scheme since 2021-22 and an additional outlay of Rs. 2,500 crore was given in December last year.
