CLAT Exam  >  CLAT Notes  >  Current Affairs: Daily, Weekly & Monthly  >  Current Affairs: Passage of the Day - 21 January 2025

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily, Weekly & Monthly - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.
The government has extended the interest equalisation scheme on pre- and post-shipment rupee export credit for three more months till December 31 to promote the country's outbound shipments. The scheme, which provides exporters interest benefits, ended on September 30.
In a trade notice, the Directorate General of Foreign Trade (DGFT) said, "Trade and Industry is hereby informed that the Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit, which had earlier been extended till September 30, 2024 has been further extended by three months up to December 31, 2024".
It also said the fiscal benefits of each MSME, on aggregate, will be restricted to Rs 50 lakh for 2024-25 till December 2024.
"MSME manufacturer exporters who have already availed equalisation benefit of Rs 50 lakh or more till 2024-25 till September 30, 2024, will not be eligible for any further benefit in the extended period," it said, adding, "this extension shall be valid for three months or such revised approval, which would be received prior to the lapse of the extension of three months".
On December 8, 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore for the continuation of the scheme up to June 30.
The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit at competitive rates at a time when the global economy is facing headwinds.
Exporters get subsidies under the Interest Equalisation Scheme for pre- and post-shipment rupee export credit.
The additional outlay of Rs 2,500 crore, over and above the current outlay of Rs 9,538 crore under the scheme, was made available to bridge the funding gap to continue the plan up to June 2024.
The scheme was started on April 1, 2015, and was initially valid for five years up to March 31, 2020. It has been continued thereafter, including a one-year extension during Covid-19, and with further extensions and fund allocations.
The scheme is fund-limited, and benefits to individual exporters were earlier capped at Rs 10 crore per annum per IEC (Import Export Code). Now the cap is Rs 50 lakh.
India's exports registered a steepest decline in 13 months, declining 9.3 per cent in August to USD 34.71 billion due to global economic uncertainties, while the trade deficit soared to a 10-month of USD 29.65 billion.
Exports during April-August this fiscal year increased 1.14 per cent to USD 178.68 billion, and imports grew 7 per cent to USD 295.32 billion.
Commenting on the move, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said they have requested for extending the scheme on a long-term basis, covering all exporters in employment intensive sectors and enhancing the cap as lowering to Rs 50 lakh will hit MSMEs as well, at the most challenging time with huge headwinds in global trade.
[Excerpt from ET "Interest Equalisation Scheme Extension" Dated 21/01/25]

Q1: When was the Interest Equalisation Scheme (IES) first launched?
(a) April 1, 2010
(b) April 1, 2015
(c) April 1, 2020
(d) April 1, 2023

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily, Weekly & Monthly - CLAT  View Answer

Ans: (b)
Sol: The IES was launched on April 1, 2015 to support exporters with reduced interest rates on rupee export credit.

Q2: What is the primary purpose of the Interest Equalisation Scheme?
(a) To provide grants for exporters
(b) To reduce the interest rates on export credit
(c) To fund international marketing campaigns
(d) To provide tax exemptions to exporters

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily, Weekly & Monthly - CLAT  View Answer

Ans: (b)
Sol: The scheme’s main objective is to reduce interest rates on pre- and post-shipment rupee export credit for exporters.

Q3: How much financial benefit do MSME manufacturer exporters receive under the scheme?
(a) 2%
(b) 3%
(c) 5%
(d) 1%

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily, Weekly & Monthly - CLAT  View Answer

Ans: (b)
Sol: MSME manufacturer exporters receive an interest equalisation benefit of 3%.

Q4: What is the maximum cap per year for individual exporters under the scheme?
(a) Rs 20 lakh
(b) Rs 30 lakh
(c) Rs 40 lakh
(d) Rs 50 lakh

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily, Weekly & Monthly - CLAT  View Answer

Ans: (d)
Sol: The cap for individual exporters has been set at Rs 50 lakh per annum per IEC.

Q5: Which organization administers the scheme?
(a) The Directorate General of Foreign Trade (DGFT)
(b) The Reserve Bank of India (RBI)
(c) The Ministry of Finance
(d) The Commerce Ministry

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily, Weekly & Monthly - CLAT  View Answer

Ans: (b)
Sol: The Reserve Bank of India (RBI) administers the scheme through public and private banks.

The document Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily, Weekly & Monthly - CLAT is a part of the CLAT Course Current Affairs: Daily, Weekly & Monthly.
All you need of CLAT at this link: CLAT
Are you preparing for CLAT Exam? Then you should check out the best video lectures, notes, free mock test series, crash course and much more provided by EduRev. You also get your detailed analysis and report cards along with 24x7 doubt solving for you to excel in CLAT exam. So join EduRev now and revolutionise the way you learn!
Sign up for Free Download App for Free
959 docs|672 tests

Up next

Up next

Explore Courses for CLAT exam
Related Searches

Weekly & Monthly - CLAT

,

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily

,

pdf

,

ppt

,

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily

,

past year papers

,

Free

,

Exam

,

Weekly & Monthly - CLAT

,

MCQs

,

Weekly & Monthly - CLAT

,

Important questions

,

Previous Year Questions with Solutions

,

Summary

,

video lectures

,

shortcuts and tricks

,

Current Affairs: Passage of the Day - 21 January 2025 | Current Affairs: Daily

,

Extra Questions

,

mock tests for examination

,

Semester Notes

,

practice quizzes

,

study material

,

Viva Questions

,

Objective type Questions

,

Sample Paper

;