Commerce ministry mulls higher 5% rate for interest equalisation scheme

Cost of export incentives could go up to Rs 1 trillion

Less than a week after the Budget spoke of leveraging India’s small- and medium-scale industry, the commerce ministry has suggested improvement in an export promotion scheme.
 
Commerce and Industry Minister Suresh Prabhu on Thursday said the cost of export incentives might lie somewhere between Rs 700 billion and Rs 1 trillion in 2018-19.
 
The commerce ministry has proposed to its finance counterpart that the prescribed rates under the interest equalisation scheme be revised upwards from 3 per cent to 5 per cent. The scheme allows small and medium exporters in labour-intensive sectors to avail loans from banks at