Exporters’ wait for detailed guidelines of the new edition of the popular interest equalisation scheme (IES) on pre- and post-shipment rupee export credit may finally be over soon, perhaps this week, sources said. But its benefits are likely to remain largely restricted to the MSME sector, while the subsidy rate may be fixed at not more than 3 per cent.
There have been demands by exporters for a wider coverage of sectors and a higher subsidy rate, especially in the light of the US tariffs and ongoing global uncertainties, but the Finance Ministry has not been keen, as it has doubts on the efficacy of the scheme in increasing exports, an official said.
“There has been a delay in notification of the guidelines for the IES and the Market Access Initiative (MAI) because of other engagements. Hopefully, this week, notifications on the detailed guidelines would be shared for both schemes and these can be implemented,” an official told businessline.
The IES, which offers credit to eligible exporters at subsidised interest rates, has been extremely popular but was discontinued on December 31, 2024. Following numerous representations from exporters from various sectors demanding its restoration, the IES, together with the MAI scheme, were incorporated in the ₹22,060 crore EPM cleared by the Cabinet earlier this month for six years.
The MAI, under which the government provides a grant/subsidy to exporters for their export promotion activities, will also be announced in a revised form.
Exporters, however, are not sure of the extent of assistance that will be provided under both schemes under the EPM, which would get clear once the guidelines are announced.
“The IES plays a crucial role in enhancing the competitiveness of Indian exporters, especially MSMEs, who face significantly higher borrowing costs compared to their counterparts in countries such as China, Thailand, and Malaysia,” per a representation made to the Commerce Department by an exporters’ body.
Exporters have been demanding that the IES subsidy rate be at 5 per cent for the MSME sector and 3 per cent for all exporters from identified labour-intensive and value-added sectors. Another demand, to increase the annual cap of ₹50 lakh per exporter under the scheme, may also be ignored, sources said.
India’s overall goods exports in the April-November 2025 period increased 2.62 per cent to $292 billion (year-on-year) while the US remained the biggest export market despite the 50 per cent tariffs implemented in August-end.
