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With the finance ministry seeking “justification” for continuing the Interest Equalisation Scheme (IES) for exporters, the commerce department is exploring ways to revamp it to ensure the scheme meets the objectives outlined during its launch nine years ago.
In a move that could significantly impact India’s export sector, the Finance Ministry has sought justification for the continuation of the Interest Equalisation Scheme (IES) for exporters, which is currently slated to expire on December 31.
DGFT issued Trade Notice 17/2024-25 dated 17.09.2024 regarding amendment to Interest Equalisation Scheme.
DGFT issued Trade notice no. 16/2024-25 dated 31.08.2024 for extension of Interest Equalization Scheme (IES) for Pre and Post shipment Rupee Export Credit for One month beyond 31.08.2024.
Two important export promotion measures–the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Interest Equalisation Scheme (IES)–are likely to be extended to help exporters retain their competitiveness in a choppy global market, sources said.
The scheme which provides exporters interest benefits was ending on June 30 this year.
DGFT issued Trade Notice No. 07/2024-2025 on 28.06.2024 regarding extension of Interest Equalisation Scheme (IES) for Pre and Post shipment Rupee Export Credit for two months beyond 30th June, 2024.
In the upcoming Budget 2024, analysts are expecting a five-year extension of the scheme for pre- and post-shipment rupee export credit, the report cited sources as saying.
In a move set to bring relief to exporters, the Directorate General of Foreign Trade (DGFT) has concluded that there is merit in continuing the interest equalisation scheme for the export sector and is in discussions with the Finance Ministry on the terms of its extension beyond the month-end, sources have said.
DGFT issued Trade Notice No. 40/2023-24 dated 20.03.2024 regarding amendments under interest equalization scheme.