The commerce ministry has sought an extension of the benefits to the export sector even as exports have started showing signs of picking up with speedy recovery in western economies.
"We have requested the finance minister for cheaper dollar credit at 1 per cent over LIBOR (London Interbank Offered Rate), against 3.5 percent over LIBOR," minister of state for commerce Jyotiraditya Scindia said in Kolkata yesterday.
He said his ministry has also sought an extension of the interest rate subvention scheme.
In 2009, the Reserve Bank of India (RBI) had extended the interest rate subvention scheme till 31 March 2010, from 30 September 2009, for labour-intensive sectors.
The minister's remarks come a day after the government pegged current fiscal growth at 7.2 per cent, higher than last year's 6.7 per cent, which led to economists demanding that the government phase out the stimulus measures.
India's export sector has taken the worst hit due to the global slowdown, as recession saw a massive fall in demand from developed countries.