As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC full form is Foreign Inward Remittance Certificate. It is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

FIRC or Foreign Inward Remittance Certificate serves as a proof of foreign money transfer for exporters in India. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">AD (Authorised Dealer) Category I Banks</a> were authorised to issue FIRCs to exporters for receiving payments from foreign sources. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

As we've covered, the full form of FIRC is Foreign Inward Remittance Certificate and for a long time it served as proof of export income from abroad. However, with changing regulations, the function of FIRC has also changed significantly. Let's take a look:

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA/BIRC is what you need.

For clarity, we'll use the term FIRC moving forward, but it refers to FIRA throughout.

Anyone receiving foreign payments needs FIRC.&nbsp; Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRC:

Beyond compliance, here’s why FIRC is crucial for exporters:

FIRCs are issued by AD Category I banks. You can contact your bank to get your FIRC after receiving your foreign payment. <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Alternatively, you can also use platforms like Skydo to get your FIRC instantly after every payment.&nbsp;</a>

Who Needs FIRC and Why It’s Important for Exporters?

FIRC (Foreign Inward Remittance Certificate) is essential for anyone receiving foreign payments, including:

Exporters, in particular, rely on FIRC for two key reasons:

FIRC is issued by Authorized Dealer (AD) Category I banks, and businesses can obtain it directly from their bank. However, it is usually a cumbersome process requiring multiple follow-ups and most banks charge around INR 500 to issue each FIRC.&nbsp;In contrast, platforms like Skydo offer a fast, hassle-free solution, providing an instant FIRC for free after every foreign payment—no manual requests, no extra costs.

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

Receiving your export payment directly through your bank can make obtaining an FIRC a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRC. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRC, depending on the institution.

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

What is the difference between eBRC and FIRC?

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will need:

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

FIRC full form is Foreign Inward Remittance Certificate. Learn what FIRC is, its importance for exporters and freelancers, and how to obtain it easily

FIRC: Full form, meaning and RBI guidelines

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

small_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

thumbnail_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

Prashanth Kumar

India’s export story is a headturner: <a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=2126119">US$824.9 billion in FY 2024–25</a>, a promising 6% growth over the previous year.&nbsp; So if you are a freelancer or a business owner, this is the right time to take advantage of the momentum and expand your business overseas.

But, behind this impressive headline, there is a costlier reality. Many small Indian business working with overseas clients are giving their profits to hidden international transaction charges.&nbsp;

In this blog post, we'll uncover these hidden charges and provide practical tips to help you keep more of what you earn from foreign currency transactions.

Common International Transaction and Payment Charges

What are the different types of foreign transaction fees? When are they applied? What is the total cost? We answer all of these questions in this part of the blog.

When a client sends you money via a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfer</a>, their bank typically applies an outward SWIFT fee, usually ranging from $15 to $30 per transaction.

In many business cases, this fee is either deducted from the payment amount or passed on to the recipient. Additionally, the payment may pass through multiple intermediary banks, each potentially charging its own fee, making the total cost difficult to predict.

Once the payment reaches your Indian bank, some banks may also levy an inward SWIFT fee, further reducing the final amount credited to your account.

While SWIFT transfers are widely used and secure, it’s important to be aware of these layered charges, as they can impact the net amount you receive.

When you receive international payments, banks usually convert the foreign currency to INR using a rate that includes a <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup</a>, typically around 1% to 3.5% above the mid-market exchange rate (the actual rate you see on platforms like Google or XE).

This markup isn’t shown as a separate fee. Instead, it's baked into the exchange rate you're offered. For instance, if the mid-market rate is ₹83 = $1, your bank might convert it at ₹80.5, meaning you receive less per dollar.

Over larger transfers, this difference can add up. On a $10,000 payment, a 3% markup could result in nearly ₹25,000 less than what you'd get at the mid-market rate.

While this is standard practice across many banks and platforms, it's worth understanding how it affects your final payout, especially if you're receiving payments regularly.

As part of RBI compliance, anyone receiving international payments in India must obtain a <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">Foreign Inward Remittance Advice (FIRA)</a>, a document that confirms the inward remittance and serves as proof for audits, tax filings, or export benefits. This document is typically issued by the receiving bank in India, often for a fee. For example, HDFC Bank charges ₹200 + 18% GST per FIRA, while <a href="https://www.idbibank.in/pdf/IDBI-Trade-Current-Account.pdf">IDBI Bank</a> may charge up to ₹150 + GST per remittance.

While the fee might seem small, it can add up quickly for businesses or freelancers handling frequent international transactions, making it important to factor in when evaluating total payment costs.

Payment gateways like PayPal, Stripe make it easier for freelancers and businesses to receive payments from international clients. However, these platforms come with a mix of transaction and currency conversion fees that are important to understand.

For example, <a href="https://www.skydo.com/blog/paypal-transaction-fees-india">PayPal charges a 4.4% transaction fee </a>plus a fixed fee (typically $0.30 for USD). Additionally, a 4% currency conversion fee is applied on top of the prevailing exchange rate. This means the effective exchange rate you receive is usually lower than the market rate.

If a client sends $10,000, total deductions may be around $440.30, leaving you with $9,559.70. At an adjusted exchange rate of ₹81.6 per USD, the final amount in INR would be about ₹7,80,071. At the mid-market rate of ₹85/USD, the amount would have been ₹8,50,000, a difference of nearly ₹70,000.

While these platforms offer ease of use and global acceptance, it’s worth comparing fees and exchange rates, especially for larger payments or high volumes.

To understand the impact of these charges, let's see how much you would actually receive from a 10,000 US Dollars payment through different payment methods:

Bank (SWIFT Transfer) Fees: $30 SWIFT fee&nbsp; Forex Markup: ~2% Amount After Fees: $9,970&nbsp; Exchange Rate: ₹83.3 (mid-market ₹85 - 2%)&nbsp; Final Amount: ₹8,30,201

PayPal
 Fees: 4.4% ($440) + $0.30 fixed fee Forex Markup: ~4% Amount After Fees: $9,559.70 Exchange Rate: ₹81.6 (mid-market ₹85 - 4%) Final Amount: ₹7,80,071

Wise Fees: $162 (1.62% conversion fee) Forex Markup: None (mid-market rate used) Amount After Fees: $9,838&nbsp; Exchange Rate: ₹85&nbsp; Final Amount: ₹8,36,230

Skydo Fees: Flat $29 Forex Markup: None (mid-market rate used) Amount After Fees: $9,971&nbsp; Exchange Rate: ₹85 Final Amount: ₹8,47,535

🧾 Assumption: Mid-market USD/INR rate = ₹85

Note: A few additional charges might apply. Like banks and Wise, they charge a fee for issuing an FIRA. The amount differs from one bank to another, and for Wise, the per FIRA charge is $2.5.

Tips to Reduce International Transaction Charges

Now that you know where hidden fees come from, here are some actionable ways to keep more of what you earn:

1. Monitor the Mid-Market Exchange Rate

Always check the live USD/INR rate on Google or XE before confirming a payment. This gives you a reliable benchmark to compare against what your bank or payment platform offers, and helps you spot any built-in markup.

2. Review Your FIRA or Credit Advice

Your Foreign Inward Remittance Advice (FIRA) or bank statement shows the exact rate applied. Compare this with the mid-market rate from the payment date to calculate the forex markup, it's often more than you think.

3. Negotiate with Your Bank (If You're Using One)

If you receive international payments frequently, speak with your bank about lowering forex markups or waiving inward SWIFT fees. Banks may offer better terms to customers bringing consistent foreign inflows, but only if you ask.

4. Use Virtual Accounts to Avoid SWIFT Fees

Platforms like Skydo and Wise offer virtual USD, EUR, and GBP accounts. These accounts allow your clients to pay you using local payment methods (like ACH or SEPA), avoiding SWIFT altogether. The result:

5. Choose Transparent Platforms 
 Avoid platforms that show only the “final amount” without explaining how it was calculated. Services like Wise use the mid-market rate and clearly list fees upfront. Skydo offers flat pricing till USD 10,000 and zero forex markup, so there are no surprises when the funds arrive.

Skydo: Transparent, Seamless International Payments

For Indian freelancers and businesses working with international clients, Skydo offers a cost-effective alternative to traditional banks and payment gateways. With Skydo, you benefit from:

Skydo is a transparent and cost-effective partner for freelancers and business owners with international clients. <a href="https://www.skydo.com/">Sign up now</a> to give it a trial.

large_International transaction charges

medium_International transaction charges

small_International transaction charges

thumbnail_International transaction charges

International transaction charges

BACS full form is Bankers’ Automated Clearing System. It is a 54-year-old payment system that’s been the backbone of UK (United Kingdom) banking. Operated by <a href="http://pay.uk">Pay.UK</a>, which is the organization responsible for overseeing the UK’s major payment systems, BACS is trusted by nearly all major UK banks for moving money electronically.

In this blog, we will help you understand what BACS is, how it works, and how you, as an Indian freelancer or business owner, can use BACS to receive payments in India from your UK clients.

BACS, or Bankers' Automated Clearing System, is the electronic payment system that manages everyday money transfers across the UK. It's trusted by individuals and businesses alike to send and receive funds securely between UK bank accounts. To give you a sense of scale, BACS processed<a href="https://www.wearepay.uk/wp-content/uploads/2024/11/Quarterly-Statistical-Report-2024-Q3.pdf"> 1.7 billion payments</a> with a total value of £1,473 billion in only the third quarter of 2024.

How BACS Payments Work (Timing and Process)

BACS payments follow a simple but structured process, so you always know when to expect your money.

A typical BACS transfer takes three working days from start to finish. Here’s how it works:

So, if a BACS payment is made on Monday, it will be credited to a user's account by Wednesday.

According to this timeline, BACS operates only on UK banking days (Monday to Friday). Payments submitted near weekends or public holidays will take longer. The BACS payment system advises users to download the<a href="https://www.bacs.co.uk/media/hvjgrldj/bacs-processing-calendar_2025.pdf"> processing calendar</a> so that they can plan their payments accordingly.

To receive a BACS Direct Credit, a user will need:

No <a href="https://www.skydo.com/blog/iban-number-meaning-full-form">IBAN </a>or <a href="https://www.skydo.com/swift-code-finder">SWIFT code</a> is required for BACS transfers, just these basic UK bank details.

If a company is dealing with BACS Direct Debit payments or setting up payroll, they also need a BACS Service User Number (SUN). The SUN is a unique six-digit number assigned to an organization, allowing it to collect payments through direct debits. But as a freelancer or exporter, you’ll mostly be working with Direct Credits.

Wondering about the costs and limits when using BACS? Here are a few aspects about BACS that you will find interesting:

BACS transfers are one of the cheapest ways to move money in the UK. Sending a payment usually costs between 5p and 50p per transaction as bank charges, depending on your bank or payment provider. That’s cheaper than other systems like CHAPS payments, which mostly cost £20–£30 per transfer. And<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT international transfers</a> that cost anywhere from £5 to £25. BACS is designed for everyday business payments, so you keep more of the sender's earnings.

When someone receives a BACS payment, they don’t pay any fees. The sender covers all the costs, meaning if your client sends £1,000, you get the full amount in your account

BACS can handle payments of up to £1 million per transfer. This is much higher compared to<a href="https://www.skydo.com/blog/everything-about-fps-bacs"> Faster Payment Services (FPS)</a>, a popular system for near-instant UK transfers. This means if you’re invoicing your client for big projects, they can easily send that amount through the BACS payment method.

Easily Accept BACS Transfers from UK Clients with Skydo

Your UK client would be more comfortable paying you through BACS. But as an Indian resident, opening a UK bank account will be a long and arduous process. In that case, you’re only left with the option to receive payments through SWIFT, which is an expensive route.&nbsp;

There is an alternative to <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfers.</a> It’s called <a href="https://www.skydo.com/blog/virtual-account-numbers">Virtual accounts.</a>

With Skydo, you can create these virtual accounts to accept BACS payments and offer peace of mind to your clients. All you have to do is follow this step-by-step process:

If you ever get stuck, Skydo’s India-based support team is ready to help you with onboarding or any questions along the way.

Sign up with Skydo today and make it easy for your UK-based client to pay you through the BACS payment scheme.

large_Everything about FPS (UK), BACS (UK) Th

medium_Everything about FPS (UK), BACS (UK) Th

small_Everything about FPS (UK), BACS (UK) Th

thumbnail_Everything about FPS (UK), BACS (UK) Th

BACS Full Form, Timing and Charges

You just landed an international client who wants to pay you. They mention a "wire transfer" or a "bank transfer," and you’re left wondering, aren’t those the same thing?

While the terms are often used interchangeably, they refer to different methods of transferring money. They vary in fees, processing networks, required details, and typical use cases.
In this blog, we’ll break down what wire transfers and bank transfers actually mean, how they differ, and which one is better suited for your international payments.

Imagine sending money through a chain of trusted messengers. That's essentially how a wire transfer works, it's an electronic payment that moves money between bank accounts, usually through the <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT network</a> or Western Union network. While wire transfer can also be used for domestic transfers, they are largely used for international transactions since bank transfers often come out cheaper and less complicated for local transactions.&nbsp;

Your client will need several pieces of general information to send a wire transfer. They'll need your bank's <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a> (a unique identifier), your account number, and sometimes your IBAN (if you're in Europe). They might also need to answer security questions or enter a one-time code their bank sends them. Wire transfer is typically suitable for large transactions.&nbsp;

Wire transfers are designed for secure, high-value transactions. Banks treat them with added caution, often requiring extra verification before processing to ensure safety and compliance.

A bank transfer is the everyday way people move money locally. Think about how you might pay your phone bill or send money to a friend, that's typically a bank transfer.

These payments use local networks in each country. In the United States, it's <a href="https://www.skydo.com/blog/everything-about-ach-payments">ACH</a>. Europe uses <a href="https://www.skydo.com/blog/what-are-sepa-transfers">SEPA</a>. The UK has Faster Payments. India has NEFT and RTGS. Each system is designed to move money quickly and cheaply within that region.

The beauty of bank transfers is their simplicity. Your client logs into their online banking, enters your account details, and clicks send. There are no SWIFT codes or lengthy verification processes. The money moves directly from their bank to the recipient bank without bouncing through intermediary banks.

Bank money transfers are used for regular business payments like payroll, invoice settlements, and subscription fees. They're the workhorse of day-to-day financial transactions because they're reliable, cheap, and easy to set up.

Wire Transfer vs Bank Transfer: Key Differences

Here’s a quick peek into wire transfer vs bank transfer:

The network difference matters more than you think

Wire transfers route through SWIFT, a global messaging system that connects financial institutions worldwide. When your European client sends money via SWIFT, the payment might travel through three different banks before reaching you. Each bank can charge a fee.

Bank transfers use local networks designed for that specific country or region. SEPA connects European banks directly. ACH does the same for US banks. This direct connection means faster processing and lower costs.

Wire transfer fees hit from multiple angles. Your client's bank charges $30-80 to send. Each intermediary bank takes $10-25. Banks often add a markup to the exchange rate, costing another 2-4%. On a $5,000 payment, you could lose $200-400 to fees and poor exchange rates.

Bank transfers within local networks typically cost nothing to receive. Even when sending fees apply, they're usually under $5. The catch? True bank transfers only work within the same country or currency zone.

Wire transfers often have variable delivery times based on routing. A payment from Japan to Brazil might take five days if it travels through correspondent banks in New York and London. Weekend and holiday delays add more time.

Local bank transfers often beat wire transfers for speed. UK Faster Payments clear in seconds. European SEPA transfers take one business day maximum. US ACH transfers typically clear overnight from the clearing house.

Wire transfers require more paperwork&nbsp;

While discussing bank transfer vs wire transfer, know that wire transfers need extensive details because they cross borders. Your client needs your bank's SWIFT code, full name and address, account number, and sometimes an IBAN. They might also need to provide a payment purpose code for compliance.

Transfer of funds through banks is usually simple. Within the US, you just need a routing number and account number. In Europe, an <a href="https://www.skydo.com/blog/iban-number-meaning-full-form">IBAN c</a>overs everything. No lengthy forms or compliance paperwork required.

Wire Transfer vs Bank Transfer: How Skydo Brings the Best of Both Worlds

For many businesses in India, receiving international payments has traditionally meant relying on wire transfers via the SWIFT network—a process that’s often slow, expensive, and cumbersome. On the other hand, local bank transfers (like ACH in the US or SEPA in Europe) are faster and cheaper, but not typically available for cross-border payments.

Skydo offers you <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual bank accounts</a> in key geographies like the US, Europe, Canada and more. With Skydo’s virtual international accounts, your clients abroad can pay you using local transfer methods, like ACH if they’re in the US, or SEPA if they’re in the EU. This means they don’t have to initiate a formal wire transfer, fill out complex forms, or pay hefty SWIFT fees. For them, it’s just a regular domestic transfer.

Once the payment hits your virtual account, Skydo handles the rest. The funds are consolidated, transferred to India, and settled into your Indian bank account, all at the live mid-market exchange rate, with no hidden forex markup. Unlike traditional banks that shave off 2–4% through unfavourable exchange rates, Skydo gives you full transparency on how much you’ll receive.

So in essence, you get the speed, cost savings, and simplicity of a local bank transfer, paired with the global reach and compliance of a wire transfer, without the usual friction on either side.

It’s the best of both worlds: easy for your clients, and better value for you.

large_Wire Transfer Vs Bank Transfer

medium_Wire Transfer Vs Bank Transfer

small_Wire Transfer Vs Bank Transfer

thumbnail_Wire Transfer Vs Bank Transfer

Wire Transfer Vs Bank Transfer

Export promotion schemes are government programs designed to help businesses sell their products and services in international markets. They offer several benefits to these businesses, like:

There are many such export promotion schemes in India, but most exporters are not taking advantage of these schemes. If you run an agency, SaaS company, MSME or are a freelancer with a strong ambition to grow your business globally, this blog is for you.

In this blog, we will explore the export incentives that matter in 2025 and how to use them for your business.

First: Are You an Exporter? (Most People Don’t Realise They Are)

Let's clear this confusion before we go ahead.

The simplest way to find out if you're an exporter is this: If you’re billing international clients in foreign currency, you’re exporting, even if you don’t ship physical goods.

If any of these sound like you, or even come close, you’re an exporter. In this blog, we’ll break down the top export promotion schemes available, so you can find the ones that apply to you and maximise the benefits for your business

RoDTEP (Remission of Duties and Taxes on Exported Products)

What it is: This is relevant for goods exporters only.<a href="https://www.skydo.com/blog/rodtep-scheme-rates-notifications-and-benefits"> RoDTEP</a> refunds embedded taxes and duties that are not reimbursed under any other scheme. For example, fuel tax paid at the time of transport of goods

Who can use it: Large manufacturers and MSMEs in the D2C, crafts, and electronics space can benefit from this scheme. Exporters working from SEZ or EOU areas are also covered. However, digital service exporters aren't covered currently

How to apply: Apply via<a href="https://www.icegate.gov.in/"> ICEGATE</a> during shipping bill filing

Coverage: For FY 2025–26, the scheme includeexport-promotion-schemess 10,780 product categories for Domestic Tariff Area (DTA) exports, covering items like freshwater ornamental fish and natural honey, and 10,795 categories for AA, EOU, and SEZ exports. The benefit is calculated as a percentage of the Free On Board (FOB) value and is reviewed and revised from time to time.

Disbursement Track Record: According to the same source above, as of March 31, 2025, total disbursements under RoDTEP have crossed Rs. 57,976.78 crore

RoSCTL (Rebate of State and Central Taxes and Levies)

What it is: This is best suited for apparel and textile exporters.<a href="https://www.skydo.com/blog/rosctl-scheme-benefits-eligibility"> RoSCTL</a> intends to provide a rebate on embedded taxes and make the Indian textile exports more competitive

Who can use it: This is applicable only for exporters of Apparel (Chapter 61 &amp; 62 of<a href="https://www.dgft.gov.in/CP/?opt=itchs-import-export"> ITC-HS codes</a>), like men's and boys' overcoats,&nbsp; and Made-ups (Chapter 63), like curtains and interior blinds.&nbsp;

Rate Structure: It ranges between 1.7% to 6% of the FOB value

Eligibility: Exporters must apply for the scheme within one year of the shipping bill

How to apply: You can apply for benefits under the RoSCTL scheme from the DGFT website. Remember, you need to have a valid IEC and GSTIN before applying

Cannot combine with RoDTEP: Exporters cannot claim benefits under both RoSCTL and RoDTEP schemes for the same exports.&nbsp;

What it is: This is available to MSMEs and exporters in select sectors. The<a href="https://www.skydo.com/blog/interest-equalisation-scheme-in-india"> Interest Equalization Scheme (IES)</a> provides pre and post-shipment credit to exporters at a subsidised interest rate. It reduces the cost of borrowing and gives them easy access to credit.

Current Status: The scheme has been extended multiple times and is currently available only for MSME manufacturers and exporters with benefits capped at<a href="https://resources.probe42.in/regulatory-updates/rbi-circulars/ies-pre-post-shipment-credit/"> Rs 50 lakhs for FY 2024-25</a>

Sector-Specific Coverage: The scheme covers<a href="https://mpeda.gov.in/exporters/?page_id=1840"> 410 identified tariff lines</a> for general exporters at 2% interest subsidy, while MSME manufacturers get 3% subsidy across all HS lines

How to apply: Head over to the DGFT website. Choose “Interest Equalization Scheme” from the Services dropdown. Click on “Start Fresh Application” and then follow the steps to fill it out.&nbsp;

Recent Disbursement: From April 2023 to November 2024, the government disbursed Rs.<a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/exporters-demand-extension-of-interest-equalisation-scheme/articleshow/117854391.cms?from=mdr"> 2,641.28 crore</a> from the allocated budget of Rs. 2,932 crore.

What it is: This Export Credit Guarantee Corporation (ECGC) export credit insurance scheme protects Indian exporters from buyer defaults, delays, and political risk. This minimises the risk for freelancers and MSMEs entering international markets and guarantees compensation to them if the buyer defaults.

Coverage Percentage: ECGC typically pays 80-90% of the loss incurred by exporters

How to apply: You can apply for a claim from the <a href="https://www.ecgc.in/">ECGC website</a> or go through authorised agents

Claim Timeline: Claims must be lodged within<a href="https://main.ecgc.in/wp-content/uploads/2023/12/Domestic-Credit-Insurance-Policy.pdf"> 360 days from the due date of the bill or 540 days</a> from policy expiry, whichever is earlier

&nbsp;MSME Market Development Assistance (MDA)

What it is: Reimbursement on expenses for participating in international trade fairs, buyer-seller meets, and even foreign marketing collateral. The scheme covers both physical and virtual participation.

Who can use it: Freelancers and agencies can claim marketing costs when expanding overseas.

How to apply: They can apply through the<a href="https://www.dcmsme.gov.in/"> DC-MSME</a> or the export promotion councils at least 14 days before the event

Rate Structure: Financial assistance varies by the region. For developed countries, the rate is up to Rs 2.50 lakh, Rs 2.00 lakh for developing countries, and Rs 1.50 lakh for SAARC countries

Annual Event Limit: Companies can avail MDA benefits for only three events per year. Coverage is limited to one representative per company for foreign participation

Special Categories Support: Women entrepreneurs from the Northeastern regions or SC/ST category do not have to pay rent in the event.&nbsp;

What it is: Targeted at startups and digital services exporters, the Market Access Initiative (MAI) scheme covers costs for international market access like PR, trade visits, certifications, and market research. Startups can access it via DPIIT or the Startup India Hub

Covered activities: Includes marketing projects abroad, capacity building, statutory compliance support, market studies, project development, and foreign trade facilitation

How to apply: You can register your business on the <a href="https://www.startupindia.gov.in/">Startup India</a> portal. You can apply for the MAI scheme with the help of the respective Export Promotion Council (EPC) or trade body relevant to your product

Limit: You can participate in up to 3 MAI events in a year

Here's a quick snapshot of these schemes and what benefits they offer

Discontinued but Frequently Searched Export Promotion Scheme: SEIS &amp; MEIS

The following two export schemes have been discontinued. However, due to their popularity, they are frequently searched by exporters. We included these schemes to let you know what they offered, when they were discontinued, and which new schemes have almost replaced them.

SEIS – Service Exports from India Scheme

Status: Discontinued after FY2019–20.

What it offered: The<a href="https://www.skydo.com/blog/seis-guide"> Service Exports from India Scheme (SEIS)</a> provided incentives typically in the range of 3–7% of net foreign exchange earned to service exporters, including IT, marketing, and consulting. The scheme offered duty credit scrips, which the service providers could use to cover various duties and taxes.

Who benefited: Many freelancers, SaaS founders, agencies, and independent consultants were able to claim these rewards for exporting services.

Why it mattered: SEIS was a major support for small and mid-sized service exporters to help them reduce costs and improve global competitiveness.

Current situation: The scheme has not been renewed, and there is no direct replacement for service exporters. However, some gaps are partially filled by the Market Access Initiative (MAI), Interest Equalization Scheme (IES), and startup-focused programs.

What to do now: Service exporters should explore MAI support for marketing and certifications. They must check the eligibility for Startup India benefits and IES for any export-linked credit needs.

MEIS – Merchandise Exports from India Scheme

Status: Replaced by RoDTEP in 2021.

What it offered: The Merchandise Exports from India Scheme (MEIS) provided incentives typically between<a href="https://worldtradescanner.com/MEISApp3BTable2.pdf"> 2% to 5%</a> to goods exporters based on the destination country and product category. Like SEIS, the exporters were offered scrips usable for paying customs duties.

Who benefited: MSMEs, D2C brands, and traditional exporters of physical goods.

Key difference: In MEIS, the incentive was calculated as a certain percentage of export pricing, which the exporter could use to pay off import duties. With RoDTEP, the exporters can use the credit scrips to pay for embedded taxes and nothing else

What to do now: Exporters should focus on RoDTEP for goods exports and ensure proper documentation during shipping bill filing to claim benefits.

Documents You’ll Always Need to Claim Benefits

The exact documents will depend on the scheme you're applying for. Having said that, the following basic documents are almost always needed:

IEC (Importer Exporter Code): The<a href="https://www.skydo.com/blog/iec-code-apply-online"> Importer Exporter Code (IEC)</a> is a 10-digit code issued by the<a href="https://content.dgft.gov.in/Website/DGFT%20-%20IEC%20Module%20User%20Help%20File.pdf"> Directorate General of Foreign Trade (DGFT)</a> for anyone involved in exporting or importing goods and services from India. It is essential for customs clearance, receiving foreign payments, and applying for export incentives. You can apply for an IEC online through the DGFT portal by submitting documents such as your PAN, certificate of incorporation, address proof, and bank details. Typically, the IEC is processed within 1–2 working days

FIRA (Foreign Inward Remittance Advice): The<a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance"> Foreign Inward Remittance Advice (FIRA)</a> is proof that you have received a foreign currency payment into your Indian bank account. It contains important details, like the beneficiary’s name, amount received, currency, sender information, and the purpose of the remittance. The FIRA helps you to stay compliant with the regulatory requirements and claim export incentives

eBRC (Electronic Bank Realization Certificate): The<a href="about:blank"> Electronic Bank Realization Certificate (eBRC)</a> is a digital certificate issued by banks confirming that payment for exported goods or services has been received in foreign currency. Banks upload the XML file of the eBRCs directly to the DGFT portal. The DGFT confirms the details and notifies the bank after successful verification. You can later log in to the DGFT website, check the eBRC status, and take a printout when it's ready

How MSMEs Can Apply Without Getting Overwhelmed

The process of applying for benefits under different export incentive schemes can be overwhelming. Especially if you're doing it for the first time. So, here's a step-by-step guide to help you with the process:

Many inexperienced exporters also hold themselves back from claiming benefits under these schemes due to certain misconceptions. We have gathered the most popular ones to set the record straight

&nbsp;State-Level Export Incentives (Hidden Gems)

Many Indian states offer export incentives to help local businesses grow globally. These incentives are offered in the form of marketing grants, interest subsidies, and website reimbursements. Here are a few examples: