Guidelines for interest subsidy scheme for exporters to be released next week

New Delhi, Nov 25 (PTI) Detailed guidelines for the Interest Equalisation Scheme and Market Access Initiative, part of the Rs 25,060 crore export promotion mission, will be released next week, a senior official said on Tuesday.

Director General of Foreign Trade (DGFT) Ajay Bhadoo said guidelines for all remaining components of the mission will be released maximum by January 15.

"Interest Equalisation Scheme and Market Access Initiative (MAI) will come next week," he told reporters here after the Board of Trade meeting.

The board, reconstituted in 2019, serves as an apex advisory body on policy measures related to the Foreign Trade Policy.

Under the scheme, the government provides an interest subsidy for pre- and post-shipment credit.

Assistance would be provided under MAI for the enhancement of exports through accessing new markets or through increasing the share in the existing markets.

The government, on November 12, approved the EPM with an outlay of Rs 25,060 crore for six financial years, beginning 2025-26, to help exporters deal with high tariffs imposed by the US.

The mission will be implemented through two sub-schemes -- Niryat Protsahan (Rs 10,401 crore) and Niryat Disha (Rs 14,659 crore).

Under the Export Promotion Mission, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems and jewellery, engineering goods, and marine products.

These sectors are facing challenges in the US market. Due to the high import duties, India's merchandise exports to the US declined 8.58 per cent to USD 6.3 billion in October.

The US has imposed a steep 50 per cent tariff on Indian goods from August 27. Meanwhile, the two countries are negotiating a bilateral trade agreement.

India's exports contracted 11.8 per cent to USD 34.38 billion in October on account of the impact of high tariffs by the US, while the trade deficit widened to a record high of USD 41.68 billion, mainly due to a jump in gold imports.

During April-October this fiscal year, exports increased marginally by 0.63 per cent to USD 254.25 billion, and imports rose 6.37 per cent to USD 451.08 billion. PTI RR RR BAL BAL