India Caps Interest Equalization for Exporters at Rs 1.66 Crore

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.