Talks are ongoing between the Ministry of Trade and Industry and the Ministry of Finance to arrive at new interest subsidy rates under the interest equalization program which expired on September 30, 2021, but has secured an additional budget of Rs 1251 crore in FY22 and provided Rs 2621.5 crore for FY23. Previously, subsidy rates varied between 3% and 5%.
“This is an ongoing program and a fare review is underway,” an official said, adding that there are proposals to reduce incentive fares.
Commerce Secretary BVR Subrahmanyam said the scheme had been approved by Cabinet and would be notified soon.
“The scheme exists and has been modified,” he told a conference.
The Ministry of Trade and Industry is working on the foreign trade policy for 2021-26, and is expected to be announced next month.
Introduced on April 1, 2015 for five years in the 2015-20 foreign trade policy, the interest equalization program is a key support program for medium, small and micro-exporters. Exporters of 416 identified products are also eligible for the benefit.
