ENA Sectors 2025-10-13 17:37:02 <p><span style="font-size:14px"><strong>New Delhi, Oct 13 (KNN) </strong>The government is set to introduce a new interest subvention scheme aimed exclusively at MSME exporters, providing a 3% interest rebate on export credit.</span></p> <p><span style="font-size:14px">This move is designed to help small and medium-sized exporters remain competitive amid rising global trade pressures, including recent U.S. tariffs on Indian goods.</span></p> <p><span style="font-size:14px">According to official sources, the proposal will soon be placed before the Union Cabinet for approval and may be implemented for a five-year period.</span></p> <p><span style="font-size:14px">The scheme will particularly benefit labour-intensive sectors such as textiles, handicrafts, gems and jewellery, leather, footwear, furniture, and toys&mdash;areas that represent a large portion of Indias MSME export base. The subsidy will lower borrowing costs for exporters availing pre- and post-shipment credit.</span></p> <p><span style="font-size:14px">The initiative replaces the earlier Interest Equalisation Scheme (IES), which offered a 3% subsidy to all exporters since 2015.</span></p> <p><span style="font-size:14px">The IES was last extended until December 2024, after which it was discontinued. It helped reduce effective borrowing rates from around 9 12% to 5 7%, easing financial stress on exporters.</span></p> <p><span style="font-size:14px">In FY24, the scheme cost the exchequer Rs 3,699 crore, but expenditure fell to around Rs 2,482 crore in FY25 due to its partial rollout.</span></p> <p><span style="font-size:14px">The new version will likely be part of the upcoming Export Promotion Mission (EPM) for FY2026, currently under inter-ministerial review.</span></p> <p><span style="font-size:14px">Export bodies such as the Federation of Indian Export Organisations (FIEO) have urged the government to extend a 5% subsidy to all exporters, citing high tariff challenges in global markets.</span></p> <p><span style="font-size:14px">The new subvention scheme, however, is expected to remain focused on MSMEs to maximise support for vulnerable exporters.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 43785 https://knnindia.co.in/news/newsdetails/sectors/government-to-launch-new-interest-subvention-scheme-for-msme-exporters-to-boost-competitiveness 2025-10-13 17:37:02 knnindia.co.in