India's Export Boost: Commerce Ministry Proposes Extended Support

In a move to bolster India's export sector, the Commerce Ministry is reportedly seeking a five-year extension for the interest equalisation scheme on pre- and post-shipment rupee export credit. This initiative aims to provide competitive rates to exporters, especially during global economic uncertainties. The scheme, which concluded on December 31 last year, has been a lifeline for exporters from identified sectors and MSME manufacturer exporters, offering subsidies that enhance their global competitiveness.

Originally launched on April 1, 2015, the scheme has undergone several extensions, including a special one-year extension during the COVID-19 pandemic. The government's commitment to supporting exporters is evident from the substantial funds allocated and disbursed under this scheme. From April 2023 to November 30, 2024, Rs 2,641.28 crore was disbursed against an allocated budget of Rs 2,932 crore.

Exporters and industry leaders, including FIEO President Ashwani Kumar, have voiced their support for the extension, highlighting its importance in maintaining India's competitive edge in international markets. With China's interest rates at 2-3%, Indian exporters are urging the government to consider the extension positively to level the playing field.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget on February 1, all eyes are on the potential extension of this crucial scheme, which could significantly impact India's export landscape and economic growth.