Interest subsidy scheme to help exporters face global headwind: Nirmala Sitharaman

Commerce Minister Nirmala Sitharaman said Monday the interest subsidy scheme announced by the government last year would boost exports, which are in the negative zone since December 2014.

Till March 31, every amount given to the RBI has been completely utilised and the scheme was well received by exporters, she added.

The Finance Ministry is also releasing the next tranche of the amount so that exporters benefit on time, she said.

She said the scheme launched in November last year will help exporters "face the troubled waters".

Concerned over continuous decline in exports, the government in November 2015 announced 3% interest subsidy scheme for exporters who had a financial implication of about Rs 2,700 crore.

Declining for the 17th straight month in April, exports dipped by 6.74% to $20.5 billion due to sharp fall in shipments of petroleum and engineering products amid tepid global demand.

To reduce transaction cost for exporters, the minister said the number of documents for export and import have been reduced to three each.

The WTO's trade facilitation agreement too would help reduce time and cost for traders.

Briefing reporters on the initiatives taken by her ministry during the last two years, Sitharaman said India took a firm stand in the WTO's Nairobi meet to safeguard the interests of farmers.

Level playing field has been obtained for farmers. They were at disadvantage because of the export subsidies given by many developed countries and after Nairobi "we have achieved the goal", she said.

"Advanced countries will have to withdraw every subsidy that they were providing and therefore India's farmers now stand a better chance competing internationally and...Enjoy a level playing field," she said.

On the Doha Development Agenda, Sitharaman said India completely reinforced and insisted that all the leftover agenda including reduction of overall subsidies by the developed countries should be fulfilled.

She also said there is "absolutely" no threat for India to provide minimum support price to farmers.