Government Extends Interest Equalisation Scheme for MSMEs by Two Months

On June 29, 2024, the Commerce Ministry extended the Interest Equalisation Scheme (IES) for Micro, Small & Medium Enterprises (MSME) exporters by two months, until August 2024. \r

The scheme, which provides pre and post-shipment rupee export credit to MSME exporters, will continue with a total outlay of Rs 750 crore for the extension period, maintaining existing terms and conditions. Launched nearly a decade ago, IES supports exporters by offering reduced-interest loans with the government compensating the difference. \r

While the extension is welcomed as a lifeline for small exporters, there are concerns from the Federation of Indian Export Organisations (FIEO) about its limited scope affecting non-MSME exporters and certain sectors.