The Department of Commerce has extended the Interest Equalisation Scheme for pre- and post-shipment rupee export credit for Micro, Small and Medium-scale (MSME) exporters till August 31.
According to a trade notice from the Department dated June 28, the outlay for the extended period is ₹750 crore and the extension is not applicable for non-MSME exporters beyond June 30. The terms of the scheme will remain the same.
Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC), said the extension of the scheme will benefit the labour-intensive garment sector, which largely has MSME units. The garment exporters are grappling with high interest costs, he said. But, there should be stability and predictability in the policy regime. The policies and schemes should be for at least a period of five years.
