New Delhi, Feb 2: The interest subsidy or equalisation scheme has been approved by the Cabinet and the commerce ministry will “very” soon notify the “improved and modified” scheme for the exporters’ community, a top government official said on Wednesday.
Exporters have demanded the extension of the scheme. They get a subsidy under this scheme for pre- and post-shipment rupee export credit.
“The interest equalisation scheme has been approved by the cabinet. It is there, it is on. We will be notifying it very soon. It has been improved and modified. It exists and it has not been discontinued,” Commerce Secretary B V R Subrahmanyam told reporters.
According to the Budget documents, Rs 2,621.5 crore has been allocated for 2022-23 for the scheme. It was Rs 3151.15 crore under the revised budget for 2021-22.
The secretary said the scheme will be another shot in the arm for the exporters’ community in addition to the huge arrears that the ministry released last year under different export promotion schemes.
In July 2021, the Reserve Bank of India (RBI) had extended the scheme providing interest subsidies for post- and pre-shipment export credit till September 2021.
In November 2018, the interest subsidy was increased to five per cent from three per cent to boost MSME sector exports. Later, the government also included other merchant exporters under the scheme and allowed them interest equalisation at the rate of three per cent on credit for the export of certain products.
He said that overall, the Budget is for “most” exporter friendly.
The commerce secretary also said that the country will achieve USD 400 billion exports target during the current financial year.
“We have moved from USD 300 billion trap to USD 400 billion,” he said.
He added that the ministry will hold consultations with export promotion councils, Indian missions abroad to fix the next target.
“So, there will be three rounds of consultations and around March 15, the (commerce) minister may announce what will be going to the (next) likely target,” he said.
Sectors that have benefited hugely from it include gems and jewellery, leather, handicrafts, textiles, engineering, and aquaculture.
Exports during April-January of this financial year have already touched about USD 336 billion, which is the highest ever. The target of the ministry is USD 400 billion for this financial year.
Earlier, in 2018-19, the country’s exports reached USD 330 billion.
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