Rate of interest subsidy for exporters hiked to 3%

Seeking to encourage exports, the government today decided to raise the rate of interest on subsidy scheme for exporters to 3% and widen the coverage of the scheme to cover more sectors.

'The rate of interest subvention from tomorrow, which would be available to exporters, would be enhanced to 3%...That is deepening of the benefit', Commerce and Industry Minister Anand Sharma told reporters.

At present the interest subvention for exporters, which is a kind of interest subsidy, is at 2%.

The Minister further said that all efforts would be made to clear claims of exporters.

'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 commerce ministry, he said, has called a meeting of Board of Trade (BoT) on August 27 to consider more steps to give a boost to exports which is facing the brunt of global slowdown.

India's merchandise exports has declined 1.4% to $72.46 billion in the quarter ended June 2013 (April-June 2013).