(MENAFN- KNN India)
New Delhi, Sep 19 (KNN) The Ministry of Commerce has implemented a new cap on interest subvention for Micro, Small, and Medium Enterprise (MSME) manufacturers under the Interest Equalisation Scheme (IES).
According to a trade notice issued by the Directorate General of Foreign Trade (DGFT) on September 17, the cap is set at Rs 5 crore per Import-Export Code (IEC) and will be in effect until September 30, 2024, for the current fiscal year.
This amendment, which aims to rationalise the scheme, stipulates that the annual net subvention amount is limited to Rs 10 crore per IEC for a given financial year.
The DGFT clarified that prior to this change, the cap was Rs 2.5 crore for both manufacturer exporters and merchant exporters until June 30, 2024.
The IES, designed to enhance the competitiveness of Indian exporters in the global market, provides interest equalisation benefits on pre and post-shipment rupee export credit.
The scheme offers a 2 per cent benefit to merchant and manufacturer exporters of 410 identified tariff lines and a 3 per cent benefit to all MSME manufacturer exporters.
Earlier this month, the DGFT had extended the IES for pre and post-shipment rupee export credit for MSME manufacturing exporters until September 30.
This extension follows a decision by the Union Cabinet, chaired by Prime Minister Narendra Modi in December of the previous year, which approved an additional allocation of Rs 2,500 crore to continue the scheme until June 30, 2024.
The IEC, a crucial 10-digit alphanumeric code, is required for businesses engaged in export and import activities, facilitating customs clearance, shipment management, and foreign currency transactions.
These measures reflect ongoing efforts by the government to support and streamline export processes for MSMEs, a vital sector of the Indian economy.
(KNN Bureau)
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