The Reserve Bank of India has extended the interest subsidy for exporters for another six months – till September – in order to give relief to exporters hit by the global financial crisis.
''It has been decided to extend the interest subvention of 2 per cent on export credit for a further period of six months, i.e, from 1 April 2009 till 30 September 2009 (to labour- intensive sectors like textiles (including Handloom), handicrafts, carpets, leather, gems and jewellery, marine products, and small and medium enterprises," RBI said in a notification.
As per the guidelines, banks will charge interest rates not exceeding BPLR minus 4.5 per cent on pre-shipment credit up to 270 days and post-shipment credit up to 180 days on the outstanding amount for the period 31 March 2009 to 30 September 2009.
Finance minister Pranab Mukherjee in the interim budget had announced the extension of the scheme for providing concessional credit to exporters till September 30.
The interest subsidy scheme was to end on March 31.
India's exports growth entered into negative zone after it dipped 12.1 per cent in October. Exports from the country have dipped by an estimated 21 per cent in February.