The Interest Equalization Scheme (IES) has been a crucial mechanism in India’s trade landscape, aiming to support exporters by subsidizing interest rates on certain loans. Recent developments have led to significant amendments, extending the scheme’s duration and introducing new caps. This article delves into the specifics of these changes and their implications for the trade and industry sectors.
The recent Trade Notice No. 40/2023-2024 issued by the Directorate General of Foreign Trade (DGFT) highlights amendments under the Interest Equalization Scheme (IES). Notably, the scheme’s extension until 30.06.2024, as per RBI’s Circular No. DOR.STR.REC.78/04.02.001/2023-24 dated 22.02.2024, brings relief to exporters amid evolving market conditions.
One significant alteration is the imposition of a cap of Rs. 2.50 Cr per Importer Exporter Code (IEC) until the end of the quarter starting from 01.04.2024. This measure aims to streamline the distribution of benefits under the IES while ensuring equitable access across stakeholders.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Trade Notice No. 40/2023-2024-DGFT | Dated: 20.03.2024
To,
1. All IEC Holders/Members of Trade and Industry.
2. MI concerned Bank Branches.
3. All Export Promotion Councils/Commodity Boards/ Other Industry Associations.
Subject: Amendments under Interest Equalization Scheme — reg.
Attention of Trade and Industry is drawn towards the extension of Interest Equalization Scheme (IES) upto 30.06.2024, as notified by RBI vide its Circular No. DOR.STR.REC.78/04.02.001/2023-24 dated 22.02.2024.
2. In this regard, it may be noted that a cap of Rs. 2.50 Cr per IEC is imposed till 30.06.2024 for the quarter starting from 01.04.2024.
3. This issues with the Competent Authority.
(K.M Harilal)
Jt. Director General of Foreign Trade
DGFT Hq
Email: lcm.harilal@gov.in
(Issued from File No.: 01/94/180/135/AM24/PC-4)
