India Caps Interest Equalization for Exporters at Rs 1.66 Crore
Jul 10, 2024 14:48
The Indian government has capped the interest equalization benefit for exporters at Rs 1.66 crore per IEC for July-August 2024, promoting outbound shipments.
New Delhi, Jul 10 (PTI) The commerce ministry on Wednesday clarified that the interest equalisation will be capped at Rs 1.66 crore per IEC (import-export code) for the July 1-August 31 period.
Last month, the government extended the interest equalisation scheme (IES) on pre- and post-shipment rupee export credit for two months to promote the country's outbound shipments.
The scheme, which provides exporters interest benefits, ended on June 30 this year.
In a trade notice, the Directorate General of Foreign Trade (DGFT) said the scheme extended on June 28, 2-24 is applicable only to MSME manufacturer exporters, who are eligible for IES benefit of 3 per cent.
"The Interest Equalisation will be capped at Rs 1.66 crore per IEC for the period from 1st July 2024 to 31st August 2024," DGFT said.
An Importer-Exporter Code (IEC) is a key business identification number, mandatory for export from India or import to India. No export or import shall be made by any person without obtaining an IEC unless specifically exempted.
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