The Department of Commerce has extended the Interest Equalisation Scheme for pre- and post-shipment rupee export credit for Micro, Small and Medium-scale (MSME) exporters till August 31.
Key Details:
- Extension Period: Till August 31, with an outlay of ₹750 crore.
- Non-Applicability: Non-MSME exporters are not covered beyond June 30.
- Scheme Terms: Remain unchanged during the extended period.
Impact on Garment Sector:
Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC), highlighted that the extension will particularly benefit the labour-intensive garment sector, predominantly comprising MSME units. He emphasized the sector’s struggle with high interest costs.
Stability in Policy Regime:
Sekhri stressed the importance of policy stability and predictability, advocating for longer-term policies and schemes, ideally lasting at least five years.
Multiple Choice Questions (MCQs):
- What is the extended period for the Interest Equalisation Scheme for MSME exporters?
- A) Till June 30
- B) Till August 31
- C) Till December 31
- D) Till October 31
- Answer: B) Till August 31
- Who primarily benefits from the extension of the scheme according to Sudhir Sekhri?
- A) Large-scale exporters
- B) Non-MSME units
- C) Garment sector with MSME units
- D) Service sector
- Answer: C) Garment sector with MSME units
- What is the allocated outlay for the extended period of the Interest Equalisation Scheme?
- A) ₹500 crore
- B) ₹750 crore
- C) ₹1,000 crore
- D) ₹200 crore
- Answer: B) ₹750 crore