<p>The Reserve Bank on Wednesday said a scheme providing interest subsidy for post and pre-shipment export credit has been extended by a year till March 31, 2021, a move which would provide relief to exporters.</p>.<p>Exporters get the subsidy under the 'Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit'. The scheme ended on March 31 this year.</p>.<p>"...Government of India has approved the extension of Interest Equalisation Scheme for pre and post-shipment Rupee export credit, with same scope and coverage, for one more year i.e. upto March 31, 2021," the RBI said in a notification.</p>.<p>The extension shall take effect from April 1, 2020 and end on March 31, 2021, covering a period of one year, it added.</p>.<p>In November 2018, the interest subsidy was increased to 5 per cent from 3 per cent with an aim to boost MSME sector exports. Later, the government included other merchant exporters too under the scheme and allowed them interest equalisation at the rate of 3 per cent on credit for export of certain products.</p>.<p>Exporters had been demanding extension of the scheme, particularly at a time when they are facing huge problems due to the COVID-19 crisis.</p>.<p>Welcoming the decision, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said this is a huge relief to exporters as the cycle of exports has elongated with slowdown in demand and liquidity.</p>.<p>"The exporters have to borrow for longer period and therefore reduction in interest rate by 5 per cent to MSME manufacturers and 3 per cent for all in selected tariff line is very timely," he said. Council for Leather Exports (CLE) Chairman P R Aqeel Ahmed said the move will greatly help exporters to be competitive at this critical juncture.</p>.<p>India's exports dropped by a record 34.57 per cent to USD 21.41 billion in March, while it declined by 4.78 per cent to USD 314.31 billion for 2019-20.</p>
<p>The Reserve Bank on Wednesday said a scheme providing interest subsidy for post and pre-shipment export credit has been extended by a year till March 31, 2021, a move which would provide relief to exporters.</p>.<p>Exporters get the subsidy under the 'Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit'. The scheme ended on March 31 this year.</p>.<p>"...Government of India has approved the extension of Interest Equalisation Scheme for pre and post-shipment Rupee export credit, with same scope and coverage, for one more year i.e. upto March 31, 2021," the RBI said in a notification.</p>.<p>The extension shall take effect from April 1, 2020 and end on March 31, 2021, covering a period of one year, it added.</p>.<p>In November 2018, the interest subsidy was increased to 5 per cent from 3 per cent with an aim to boost MSME sector exports. Later, the government included other merchant exporters too under the scheme and allowed them interest equalisation at the rate of 3 per cent on credit for export of certain products.</p>.<p>Exporters had been demanding extension of the scheme, particularly at a time when they are facing huge problems due to the COVID-19 crisis.</p>.<p>Welcoming the decision, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said this is a huge relief to exporters as the cycle of exports has elongated with slowdown in demand and liquidity.</p>.<p>"The exporters have to borrow for longer period and therefore reduction in interest rate by 5 per cent to MSME manufacturers and 3 per cent for all in selected tariff line is very timely," he said. Council for Leather Exports (CLE) Chairman P R Aqeel Ahmed said the move will greatly help exporters to be competitive at this critical juncture.</p>.<p>India's exports dropped by a record 34.57 per cent to USD 21.41 billion in March, while it declined by 4.78 per cent to USD 314.31 billion for 2019-20.</p>