Additional Allocation for Continuation of Interest Equalisation Scheme

  • The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved
  • For continuation of Interest Equalisation Scheme till 30th June 2024.
  • Would help exporters from identified sectors and all MSME manufacturer exporters to avail of pre and post-shipment Rupee export credit at competitive rates.

Implementation Strategy and Targets:

  • Shall be implemented by RBI through various Public and non-public Sector banks that provide pre and post-shipment credit to the exporters.
  • Jointly monitored by DGFT and RBI through a consultative mechanism.

Impact:

  • Availability of pre and post-shipment packing credit at competitive rates is important for the export sector to compete internationally.
  • Beneficial for the export growth of the country as per the study conducted by IIM Kashipur.
  • Primarily meant for the labour-intensive sectors.
  • Meant for exports by merchants and manufacturer exporters of identified tariff lines.
  • Would lead to the generation of employment.
Posted in Current Affairs.