![]() ![]() It covered labor-intensive products that had a promise of employment generation. 2,500 crore annually for IES, with the actual cost to revenue depending on the claims made by the exporters. ![]() With effect from 2nd November 2018, this was increased to 5%, although the rate remained at 3% for large manufacturers and merchant exporters. Intended to stem the downward trend in exports, IES offered a 3% rate of interest equalisation. The extension shall take effect from Apand ends on March 31st, 2020 covering a period of one year. The approval of the extension stays still with the same scope & coverage. Note: As part of the relief measures announced during COVID-19 Lockdown, the government has extended the Interest Equalisation Scheme for interest rate on Pre & Post Shipment Rupee Export Credit. ![]() It was originally implemented for five years. This scheme, which is also referred to as interest subvention export scheme for exporters, was designed to benefit the MSME segment in particular. Under the IES/Interest Subvention meaning, the government identifies eligible exporters and passes on the interest equalization amount they are entitled to directly to them. At the time, exporters were facing increasing credit costs in their export cycles due to the stagnation of global demand and extended credit periods.īy introducing this scheme, the government expected that the exporters would be able to correct their pricing and improve the competitiveness of their products. The Interest Equalisation Scheme (IES) was implemented on 1st April 2015 to provide pre and post-shipment export credit to exporters in rupees. ![]()
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