MSME exporters may get 2-3.5% interest relief

THE GOVERNMENT MAY offer 2-3.5% interest subvention to micro, small, and medium enterprises (MSMEs) exporters in a targeted manner, under a revamped interest subvention scheme in the works.

- MUKESH JAGOTA

The support levels will vary across sectors, depending on the needs of each being assessed.

After the 50% additional tariffs slapped by the US, many labour-intensive, MSME-populated sectors have been facing relative tariff disadvantages of around 30% in shipments to the country. In a recent meeting with the Prime Minister, these exporters have said they could manage a 15% disadvantage by their own business reorientation, pricing powers and cost reduction, but will require government succour to address the balance 15%.

In this background, the government may soon unveil a revamped interest subvention scheme, specifically for MSME exporters, instead of all exporters, the sources said.