The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has issued Trade Notice No. 17/2024-2025 announcing amendments to the Interest Equalisation Scheme (IES). The scheme, extended until 30th September 2024, has been updated to introduce new caps on subvention amounts for different categories of exporters. This revision aims to rationalize the benefits provided under the scheme and streamline its application for all Import Export Code (IEC) holders, including MSMEs and other exporters.
As per the amendments, the annual net subvention amount for any IEC holder has been capped at Rs 10 crore for the financial year starting 1st April 2024. Specifically, MSME manufacturers are now limited to a subvention cap of Rs 5 crore, while for manufacturer exporters and merchant exporters, the subvention is capped at Rs 2.5 crore, valid until 30th June 2024. These changes, effective immediately, are intended to balance the financial support provided to exporters while ensuring a fair distribution of benefits under the IES. The trade notice emphasizes that these modifications have been approved by the competent authority and require compliance from all stakeholders, including banks and export promotion councils.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Trade Notice No.17/2024-2025-DGFT| Dated: 17.09.2024
To,
1. All IEC Holders/Members of Trade and Industry.
2. All concerned Bank Branches.
3. All Export Promotion Councils/Commodity Boards/ Other Industry Associations.
Subject: Amendments under Interest Equalisation Scheme — reg.
Attention of Trade and Industry is drawn towards the extension of Interest Equalisation Scheme (IES) up to 30.09.2024, as notified by DGFT vide Trade Notice no. 16/2024-25 dated 31.08.2024.
2. The below mentioned amendment is made with immediate effect for rationalisation of the scheme.
a. The annual net subvention amount is capped at Rs 10 Cr per IEC for a given financial year, accordingly a cap of Rs. 5 Cr per IEC for MSME Manufacturers is imposed till 30.09.2024 for the financial year starting from 01.04.2024.
b. It is further clarified that for Manufacturer Exporters and Merchant Exporters the cap is Rs. 2.5 Cr till 30.06.2024.
3. This issues with the approval of Competent Authority.
(Raman Kumar)
Dty. Director General of Foreign Trade
DGFT Hq
(Issued from File No.: 01/94/180/135/AM24/PC-4)
