New Delhi, Jan 2 (KNN) In the upcoming annual budget for 2023-24, the central government is planning to raise interest rate subsidy for small and medium exporters, reported The Mint.

Amid a series of interest rate hikes by the central bank, exporters have been demanding the government to restore the interest equalization benefits.

To relieve some of the interest rate burden on them due to a tightening monetary policy, the government is considering raising interest equalization or subsidy benefits extended to MSME exporters in union budget for the next financial year.

The proposal to extend the low interest rate benefit is being examined at a time Indian exporters are facing headwinds on account of slowing demand in key markets amid record inflation and the threat of a global recession, reported The Mint.

The government is examining the cost to the exchequer if the interest subsidy is hiked from 3 per cent to 5 per cent for micro, small and medium manufacturers, and from 2 per cent to 3 per cent for manufacturer-exporters and merchant-exporters exporting under 410 tariff lines.

Due to concerns raised by exporters the department of commerce is learnt to have discussed the proposal with the finance ministry.  (KNN Bureau)