The Government of India has given approval for extension of Interest Equalisation Scheme (IES) on Pre and Post Shipment Rupee Export Credit up to 31 March 2024 with retrospective effect from 1 October 2021. This will be a big support to the apparel exporters.
The Reserve Bank of India (RBI) issued modified norms in this regard. In April last year, the scheme was first extended till June end and later till September 2021.
As per revised rates, 3 per cent interest subsidy is given on Pre and Post Shipment Rupee Export Credit for manufacturer MSMEs and 2 per cent interest subsidy for non-MSMEs manufacturer and merchant exporter.
The apparel industry has welcomed this move.
The RBI also said for the 1 October 2021 to 31 March 2022 period, banks shall identify the eligible exporters as per the scheme, credit their accounts with the eligible amount of interest equalisation and submit sector-wise consolidated reimbursement claim for the period to the Reserve Bank by 30 April 2022.
Raja M. Shanmugham, President, Tirupur Exporters Association thanked Government for this step.
He said the extension given up to 31 March 2024, as requested by the Association in all its representations, will be helpful to the apparel exporters to work out their costing accordingly while taking up the orders.
