Exporters may soon get clarity on the long-awaited detailed guidelines for the renewed edition of the popular Interest Equalisation Scheme (IES) on pre- and post-shipment rupee export credit, sources said, with notifications expected as early as this week.
While the scheme’s revival is widely welcomed, its benefits are likely to remain largely restricted to the MSME sector, with the subsidy rate expected to be capped at 3 per cent, officials indicated.
Exporters have been seeking broader coverage across sectors and a higher subsidy rate, particularly in light of US tariffs and ongoing global market uncertainties. However, the Finance Ministry reportedly remains cautious, questioning the scheme’s effectiveness in boosting exports.
“There has been a delay in notifying the guidelines for the IES and the Market Access Initiative (MAI) due to other engagements. Hopefully, this week, the notifications for both schemes will be shared and implementation can begin,” an official said.
The IES, which provides subsidised credit to eligible exporters, was discontinued on December 31, 2024, after years of popularity. Following repeated representations from exporters across sectors, both IES and MAI have been incorporated into the ₹22,060 crore Export Promotion Measures (EPM) cleared by the Cabinet earlier this month for six years.
Under the MAI, the government provides grants or subsidies to exporters for export promotion activities. The revised guidelines for the MAI are also expected to be announced soon.
Exporters, however, remain uncertain about the extent of support under both schemes within the EPM, pending the release of detailed guidelines.
“The IES is crucial for improving the competitiveness of Indian exporters, especially MSMEs, who face much higher borrowing costs compared to counterparts in countries such as China, Thailand, and Malaysia,” an exporters’ body noted in a representation to the Commerce Department.
Exporters have proposed a subsidy rate of 5 per cent for MSMEs and 3 per cent for exporters in identified labour-intensive and value-added sectors, along with an increase in the annual cap of ₹50 lakh per exporter. Sources said these requests may not be fully accommodated.
India’s overall goods exports in April-November 2025 rose 2.62 per cent year-on-year to $292 billion, with the US remaining the largest export market despite the imposition of 50 per cent tariffs at the end of August.