Question
The govt of India has approved the extension of Interest
Equalization Scheme on Pre and Post Shipment Export Credit to ………Solution
Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (‘Scheme’) up to March 31, 2024 or till further review, whichever is earlier. The extension takes effect from October 1, 2021 and ends on March 31, 2024. The Interest Equalisation Scheme (IES) was implemented on 1st April 2015. This was introduced to provide pre and post shipment credit to exporters in rupees. Under the IES, the government identifies eligible exporters and passes on the interest equalization amount they are entitled to directly to them. This scheme, which is also referred to as interest subvention export scheme for exporters, was designed to benefit the MSME segment in particular. It was originally implemented for five years.
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