The government is set to revive the Interest Equalisation Scheme, offering subsidies between 2.5-3% to exporters in select sectors, an official revealed. The scheme's specifics, anticipated next week, are part of the Rs 25,060 crore Export Promotion Mission sanctioned by the Union Cabinet.
Designed to facilitate rupee export credit at favorable rates amidst global trade challenges, the initiative caps annual benefits at Rs 50 lakh per exporter. The scheme initially launched in 2015, was paused due to competing nations offering lower export credit rates of 2-3%, compared to India's 8-12%.
Costing approximately Rs 3,200 crore annually, with Rs 3,700 crore allocated for 2023-24, the scheme's execution was previously overseen by RBI in partnership with Directorate General of Foreign Trade. Exporters nationwide have been advocating for the scheme's reactivation to maintain competitive credit access.