Centre likely to increase interest rate subsidy for MSME exporters

New Delhi, Oct 21 (KNN) To help MSME exporters relieve from the burden of rising interest rates the government is planning to raise the interest equalization or subsidy benefit extended to them.

The move to provide credit at interest rates that are lower than the market rate comes at a time when Indian exporters are facing a serious challenge on account of slowing demand in key markets amid record inflation and the threat of a global recession, reported Mint.

For MSME manufactures the interest subsidy shall be increased from 3 per cent to 5 per cent and for manufacturer-exporters and merchant-exporters exporting under 410 tariff lines it would be increased from 2 per cent to 3 per cent.

The proposal will be moved to the Ministry of Finance by the Department of Commerce which is calculating the cost of the exercise.

The scheme helps exporters get access to capital at a reduced cost.

Exporters have been pressing the government to restore the interest equalization benefits amid a series of interest rate hikes by the central bank.  (KNN Bureau)