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Rate of interest subsidy for exporters hiked to 3%

In a move to boost exports,the government on Wednesday raised the rate of interest subvention for exporters to 3 per

Written by ENS Economic Bureau | New Delhi | Published: August 1, 2013 1:53:31 am

In a move to boost exports,the government on Wednesday raised the rate of interest subvention for exporters to 3 per cent from the existing 2 per cent and promised to clear pending claims expeditiously. The measures,in total,would be worth Rs 2,000 crore.

Finance minister P Chidambaram said that the hike in interest subvention would cost the exchequer Rs 450 crore while Rs 1,550 crore (last year’s balance) would be paid under various incentive programmes.

“The rate of interest subvention from tomorrow,which would be available to exporters,would be enhanced to 3 per cent,” commerce and industry minister Anand Sharma said,adding that exercise is on to extend this benefit to more sectors. On December 26,2012,the government had extended two per cent interest subsidy for one more year till March 2014. Currently,sectors including the medium and small enterprises,handloom,handicraft,carpets,toys,sports goods,processed products,besides certain engineering and textiles items,get the benefit of subvention.

The move comes amid declining exports,which contracted 1.4 per cent to $72.46 billion in the quarter ending June 30. The minister said that a meeting of Board of Trade has been called on August 27 to discuss more measures to boost exports.

“The government is making available the required resources to clear all claims of the exporters from January 1 until now and the provisions are being made to ensure that claims of all the exporters are settled forthwith,” he said.

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