The government has extended the interest equalisation scheme on pre- and post-shipment rupee export credit for one more month till September 30 to promote the country’s outbound shipments.

The scheme, which provides exporters interest benefits, ended on August 31. In June, it was extended for two months.

In a trade notice, the Directorate-General of Foreign Trade (DGFT) said, “Trade
and industry is hereby informed that the Interest Equalisation Scheme for Pre and Post
Shipment Rupee Export Credit, which had earlier been extended up to August 31 as a fund limited scheme, has been further extended for one month i.e., up to September 30, 2024.”

This extension is applicable only for MSME manufacturing exporters.

On December 8, 2023, the Union cabinet had approved an additional allocation of ₹2,500 crore for the continuation of the scheme up to June 30.

The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit at competitive rates at a time the global economy is facing headwinds.

The additional outlay of ₹2,500 crore, over and above the current outlay of ₹9,538 crore under the scheme, was made available to bridge the funding gap to continue the plan up to June 2024.