Welcoming the move of the government granting extension to the Interest Equalization Scheme, FIEO President, Dr. A Sakthivel said that the scheme will help the identified export sectors to be internationally competitive and to achieve a higher level of export performance.

Dr. Sakthivel specially thanked the Finance Minister, Commerce Minister and RBI Governor for accepting the request to further extend the interest subvention scheme as the MSME sector is still struggling from lack of affordable working capital.

The Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit, with the same scope and coverage, for a further period of three months, i.e., up to September 30, 2021. The extension takes effect from July 01, 2021 and ends on September 30, 2021 covering a period of three months.

FIEO President also thanked the government for timely extension as it will not only provide competitive rates for exports but will also bring it to the near international benchmarks particularly for MSMEs.

The FIEO Chief further requested the government that in order to provide stability to the scheme, it may be extended by 3 years.