The Ministry of Commerce and Industry has announced a two-month extension of the Interest Equalisation Scheme (IES) on pre- and post-shipment rupee export credit, with a notable modification.
According to a trade notice issued by the Directorate General of Foreign Trade (DGFT) on Wednesday, the scheme will now be capped at Rs 1.66 crore per Importer-Exporter Code (IEC) for the period from July 1 to August 31, 2024.
The IES, which aims to promote India’s outbound shipments by providing interest benefits to exporters, was originally set to conclude on June 30, 2024. However, the government decided to extend it for an additional two months.
It is important to note that this extension applies exclusively to MSME manufacturer exporters who are eligible for a 3 per cent interest equalisation benefit.
The DGFT clarified that the scheme, extended on June 28, 2024, is specifically tailored for this category of exporters.
The IEC, a mandatory business identification number for entities engaged in import or export activities in India, plays a crucial role in this context.
Barring specific exemptions, no individual or organisation can conduct import or export operations without obtaining an IEC.
This extension and cap on the Interest Equalisation Scheme reflect the government’s ongoing efforts to support the export sector, particularly focusing on micro, small, and medium enterprises (MSMEs) in the manufacturing domain.