New Delhi, Apr 12 (KNN) The Commerce Ministry is likely to seek a substantial five-year extension of the interest equalisation scheme on pre- and post-shipment rupee export credit, an official source revealed.

This move aims to bolster India's export performance and fuel growth in the sector.

The current iteration of the scheme, introduced on April 1, 2015, is set to expire on June 30, 2024. Initially intended to run for five years until March 31, 2020, the scheme has already received one extension.

According to the official, the ministry plans to revamp certain export promotion schemes, with the interest equalisation programme being a key focus.

"We would propose an extension of the scheme for five years. The scheme is doing good and it is helping the exporters," the official stated.

The interest equalisation scheme has proven beneficial for exporters by providing them with affordable credit facilities. In December 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore to continue the scheme until its current June 30 deadline.

By extending the scheme for another five years, the government aims to maintain a supportive financial environment for exporters, enabling them to remain competitive in global markets and drive sustained growth in the country's outbound shipments.

(KNN Bureau)