IES for exporters to provide 2.5-3 pc interest subsidy

The Interest Equalisation Scheme (IES) for exporters, which is expected to make a comeback next week, will provide 2.5% to 3% interest subsidy on pre- and post-shipment credit, it is learnt. The annual benefit will be capped at Rs 50 lakh per exporter. The IES, which was announced as part of the Export Promotion Mission (EPM) approved by Cabinet on November 12, will be limited to select sectors which are facing the maximum pressure of 50% additional duties in the US market. Since the scheme ended, exporters have been seeking its revival as they maintain that high credit costs in India, as compared to other countries, hurt their competitiveness. Exporters say that export credit in countries they are competing with is priced at 2-3% while in India, it ranges from 8-12%, as per a report.

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