Exporters Urge Cap Removal on Interest Subvention

Exporters are calling on the government to eliminate the cap on interest subvention, arguing that the current support level falls short amid mounting global trade uncertainties. They emphasize the crucial need for enhanced financial relief to sustain the sector.

The Federation of Indian Export Organisations (FIEO) has voiced concerns over the limited impact of the current subsidy scheme. The organization is urging a reconsideration of the scheme's structure to better support businesses grappling with escalating borrowing costs and volatile export demand.

Ajay Sahai, Director General and CEO of FIEO, highlighted the inadequacy of the current setup, pointing out that a mere 75 percent interest subvention with a cap of 50 percent is insufficient. The plea comes after recent amendments to government guidelines for pre- and post-shipment export credit within the Rs 25,060 crore export promotion mission.