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“Interest subsidy scheme for exporters in a month”

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New Delhi, Jun 17  Worried over continuous decline in exports, the government is expected to extend the interest subsidy scheme for exporters by the end of this month.

Commerce Secretary Rajeev Kher said that in the Budget there is an arrangement for interest subvention scheme, under which exporters get loans at affordable rates.

“We only have to decide about the sectors (which would get the benefit of this scheme) and the rate,” Kher told reporters here.

He said the ministry has completed the process and soon, under an institutional mechanism of the Department of Revenue, they will take the decision on the issue.

“I think next week, we will be able to take that decision and after that we will seek approval of the cabinet committee.

So, I think the whole process will be completed in a months time,” he added.

Loans at subsidised rates would help exporters to boost shipments as the country’s exports were in the negative zone during the last six months.

Besides global slowdown, dip in oil prices and high interest rates are impacting exporters.

The interest subvention scheme of 3 per cent ended on March 31, last year. Exports body FIEO is demanding to extend it retrospectively from April 2014.

Continuing its declining trend, India’s exports shrank by about 20.19 per cent in May to USD 22.34 billion, marking a fall for the sixth straight month.

Kher said that the main reason for decline in exports is significant dip in oil prices.

“Due to this, imports have come down and in our export basket, petroleum products have significant contribution,” he said adding “slowdown in global economy is also one of the reason”.

Further, he said that the Commerce Ministry is in the process of preparing an export strategy to boost agriculture exports.

“There is a need to boost exports of processed products and value added goods in agri sector. We are trying to get more markets for our agri exports. There is a huge potential there. The whole aim is to get into the second line of agri exports that is processed goods, branding and packaging,” he added.

Source: PTI¬†http://www.ptinews.com/news/6155588_-Interest-subsidy-scheme-for-exporters-in-a-month–.html

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