Interest subsidy for exporters raised to 3%

The government today announced an increase in interest subsidy on export credit from 2 per cent to 3 per cent and extended its ambit to more products and sectors, in a bid to encourage exports.

The decision would meet the persistent demand of exporters to both increase the rate of interest subvention and also to widen the coverage.

"The rate of interest subvention from tomorrow, which would be available to exporters, would be enhanced to 3 per cent...That is deepening of the benefit", minister of commerce and industry Anand Sharma said.

At present, all exporters who come under the micro and small enterprises category, irrespective of the sector, are beneficiaries of this scheme.

In addition, exporters belonging to the handlooms, handicraft, carpets, toys and sports goods, processed agricultural products, readymade garments sectors besides 235 tariff lines in the engineering sectors, and 6 tariff lines in textile made-ups are covered by the scheme.

This scheme will benefit the exporters of small and medium enterprises and also most of the labour-intensive sectors by reducing their export costs.

Sharma said all pending claims of exporters would also be cleared immediately.

"The government is making available the required resources to clear all claims of the exporters... And the provisions are being made to ensure that claims of the all the exporters are settled forthwith", the minister said.

Sharma said the government was also considering raising plan allocation for market access initiative (MAI), market development assistance and central assistance to states for developing export infrastructure and other allied activities (ASIDE) scheme.

The ministry of commerce and industry has convened a meeting of the Board of Trade (BoT) on 27 August to review the current situation and the international trade scenario.