The Reserve Bank of India (RBI) last week extended the validity of the interest equalisation scheme (IES) for pre-and-post-shipment rupee export credit for three months till September 30 to help exporters struggling to tackle the impact of the second COVID-19 wave.

Apparel Export Promotion Council (AEPC) chairman A Sakthivel said the scheme will “help the identified export sectors to be internationally competitive and to achieve a higher level of export performance”.

The government has budgeted ₹1,900 crore under the scheme for fiscal 2021-22, against ₹1,600 crore for 2020-21.

This scheme usually allows manufacturing and merchant exporters an interest subsidy of 3 per cent on pre-and-post-shipment rupee credit for exports of 416 tariff lines.

The bank notification followed the government approval of the extension of the scheme, with ‘same scope and coverage’.
Merchandise exports surged by over 69 per cent in May from a year before to $32.3 billion, driven by a favourable base and improved demand from key markets.

Fibre2Fashion News Desk (DS)

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