The Directorate General of Foreign Trade (DGFT), vide Trade Notice no. 18/2024-25 dated 30th September has extended the Interest Equalisation Scheme for Pre and Post Shipment Rupee Export Credit for 3 months, extending its validity until December 31, 2024.
This move comes as a relief for exporters, particularly those in the Micro, Small, and Medium Enterprises (MSME) sector, who rely on this scheme for financial support during their export activities.
Previously set to expire on September 30, 2024, the extension maintains the same terms and conditions as the original scheme, ensuring continuity in support for exporters. However, a change has been introduced: the fiscal benefits available to each MSME manufacturer exporter will now be capped at ₹50 lakh for the fiscal year 2024-25, effective until December 2024.
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This aims at the distribution of benefits and ensures that more MSMEs can access financial support, although it does limit the maximum assistance available to individual exporters.
Moreover, it is essential to note that MSME manufacturers who have already availed themselves of the maximum equalisation benefit of ₹50 lakh or more before the September 30 deadline will not be eligible for any further benefits during this extended period.
The extension is designed to remain valid for three months or until a revised approval is provided before the expiration date. Stakeholders, including MSMEs, are strongly encouraged to familiarise themselves with the guidelines and relevant notifications issued by the Reserve Bank of India (RBI).
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