Exporters Demand For IES Extension

Despite not being in the recent budget, the scheme has been crucial for competitive rupee export credits during global economic challenges

New Delhi: The Indian exporting community on Sunday urged Finance Minister Nirmala Sitharaman to extend the interest equalisation scheme (IES) for getting affordable rates of credit, as their demand was not mentioned in the Budget.The scheme ended on December 31 last year. The scheme, according to exporters, has helped them avail of rupee export credit at competitive rates at a time when the global economy is facing headwinds.

Exporters used to get subsidies under the scheme for pre and post-shipment rupee export credit. Sanjay Budhia, Chairman of CII National Committee on EXIM, said though the Budget announcements would help boost outbound shipments, “we sincerely request the Finance Minister to kindly reinstate the scheme for all exporters to make them globally competitive.”

Sharing similar views, Federation of Indian Export Organisations (FIEO) President Ashwani Kumar said the commerce ministry has allocated funds of Rs 2,250 crore under export promotion scheme of covering IES and MAI (market access initiative). The IES may be extended immediately with effect from January 1 with a cap of Rs 10 crore and international events for 2025-26 may be approved immediately. Budhia also said that measures announced in the Budget such as cutting customs duties on certain inputs, and rolling out of national manufacturing mission would help boost exports and job creation.