Budget 2024: EEPC India pushes for export boost, calls for higher interest subvention
EEPC India has suggested restoring the interest subvention to 3% for the specified 410 tariff lines besides raising the subvention rate to 5% for MSME manufacturers exporting under any tariff line.
«Considering the rise in the repo rate from 4.4% to 6.5%, we have requested to restore the interest subvention rate to 3% for the specified 410 tariff lines. We also requested that for Micro, Small, and Medium Enterprises (MSME) manufacturers exporting under any tariff line, the interest subvention rate be increased to 5%. Merchant exporters have low-profit margins, and the cost of credit affects their viability significantly. Therefore, we have requested to extend the Interest Equalisation Scheme to merchant exporters with a 3% subvention rate,» EEPC India chairman Arun Kumar Garodia said.
According to Trade Notice No 07/ 2024-25, the Interest Equalization Scheme has been extended for two months but only for MSMEs. It also says that the claims from non-MSME exporters will not be accepted beyond 30th June 2024.
Earlier, merchant exporters and large exporters were eligible for Interest Equalization Scheme benefits for 410 tariff lines. Most of these sectors are labour-intensive operate on low margins and face tough competition from their global counterparts. Denying the scheme for merchants and large exporters will hurt them badly, which was earlier helping them to be globally competitive.
EEPC India has also proposed that a weighted deduction of 150% in respect of expenditure incurred in R&D be reinstated.
