In order to promote exports and help exporters overcome short-term disadvantages, finance minister Pranab Mukherjee today announced the extension of the Adjustment Assistance Scheme for providing enhanced Export Credit and Guarantee Corporation (ECGC) cover of 95 per cent of exports till March 2010.
The scheme was initiated in December 2008 to mitigate the difficulties faced by the exporters triggered by global economic slowdown.
He further enhanced the allocation of the market development assistance (MDA) scheme by 148 per cent from the earlier proposal to Rs124 crore.
The MDA scheme provides support to exporters in developing new markets.
While presenting the union budget for 2009-10 in the Lok Sabha today, Mukherjee said that many traditional markets, including the US and European markets, which constitute 60 per cent of the total exports, are still under financial stress. He also called for increased efforts to identify and develop the new markets.
Mukherjee also extended interest subvention scheme for the textile industry from 3 September 2009 to 31 March 2010.