Exporter subsidies are likely to be restored.

It is a continuous plan, and the rates are being reviewed, an official said, adding that there is a suggestion to cut the incentive rates. According to Commerce Secretary BVR Subrahmanyam, the initiative has been approved by the Cabinet and would be announced soon.

The government is reconsidering the subsidy it provides to exporters in order to fulfil their demand for low-cost cash, and a statement to that effect is expected in the next Foreign Trade Policy.

The commerce and industry ministry and the finance ministry are negotiating new interest subsidy rates under the Interest Equalization Scheme, which expired on September 30, 2021 but was given an extra budget of Rs 1,251 crore in FY22 and Rs 2621.5 crore in FY23. Previously, the subsidy rates varied between 3% and 5%. It is a continuous plan, and the rates are being reviewed, an official said, adding that there is a suggestion to cut the incentive rates.

According to Commerce Secretary BVR Subrahmanyam, the initiative has been approved by the Cabinet and would be announced soon. The scheme exists and has been changed, he stated during a conference.

The Commerce and Industry Ministry is working on the Foreign Trade Policy for 2021-26, which is expected to be released next month.

The Interest Equalization Scheme, which was implemented on April 1, 2015 for a five-year period as part of the Foreign Trade Policy 2015-20, is a critical assistance programmed for medium, small, and micro exporters. The advantage is also available to exporters of 416 selected items.

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