New Delhi, Mar 22 (KNN) The government will maintain a cap of Rs 2.5 crore on interest subsidies for individual export units during the first quarter of the upcoming fiscal year 2024-25.

The Directorate General of Foreign Trade (DGFT) issued a notification on Wednesday, specifying that the Rs 2.5 crore cap per Importer Exporter Code (IEC) will remain in effect until June 30, 2024, covering the quarter starting from April 1, 2024.

President of Federation of Indian Micro and Small & Medium Enterprises (FISME) Prashant Patel has expressed satisfaction on the development.

“Interest Equalisation Scheme is an important tool for Indian MSMEs to maintain competitive advantage with competing nations  in sectors where margins are razor thin in MSME dominated sectors such as apparel and leather”, he added.     

This measure falls under the widely utilised Interest Equalisation Scheme (IES) targeting specific sectors and Micro, Small and Medium Enterprises (MSMEs).

This decision follows the continuation of the capping policy introduced earlier in the current fiscal year, aimed at ensuring broader accessibility to the scheme's benefits.

(KNN Bureau)