11,000 exporters avail benefits under interest equalisation scheme: Govt, ET BFSI
The government on Tuesday stated about 11,000 exporters avail the advantages beneath the curiosity equalisation scheme to get credit score at concessional rates of interest. Curiosity equalisation has been an essential coverage instrument, particularly for MSME exporters, for bringing down the upper value of credit score incurred by Indian exporters vis-a-vis their overseas rivals, Minister of State for Commerce and Industry Jitin Prasada stated in a written reply to the Lok Sabha. In India, the repo charge stands at about 6.25 per cent, with exporters bearing rates of interest ranging between 8 to 12 per cent or much more, relying on the unfold and danger evaluation of the borrower by the Authorised Dealer Banks.
In competing nations, the rate of interest could be very low. For example, the central financial institution charge in 2025 is 3.1 per cent in China, 3 per cent in Malaysia, 2 per cent in Thailand, and 4.5 per cent in Vietnam.
“Roughly, 11,000 exporters avail the advantages beneath the scheme,” he stated.
As much as June 30, the scheme lined all exports made by Micro, Small and Medium Enterprises (MSMEs) at 3 per cent curiosity equalisation or subvention, and 410 recognized product classes at 2 per cent.
From July 1, 2024, onwards, the scheme has been partially prolonged until December 31, 2024, for MSME manufacturer exporters with a worth cap of Rs 50 lakhs per exporter.
“Presently, Curiosity Equalisation has been merged beneath the Export Promotion Mission through which a budgetary allocation of Rs 2,250 crore has been made,” Prasada stated, including the federal government is endeavor stakeholder session with regard to the mission.
The main target is on facilitating easy accessibility to export credit score, cross-border factoring assist, and backing MSMEs to sort out non-tariff measures in abroad markets.
In a separate reply, he stated a cumulative incentive quantity of Rs 13,029 crore has been disbursed until December 2024 beneath PLI (manufacturing linked incentive) scheme for 9 sectors, together with Giant Scale Electronics Manufacturing, IT {Hardware}, Bulk Medication, Medical Gadgets, Prescription drugs, Telecom & Networking Merchandise, Meals Processing, White Items, and Drones.
