Commerce Ministry For Interest Sops For Export Sector, Interest Subsidy on Export in India, Interest Sops For Indian Export Sector, Extending Interest Subsidy 2 Percent on Shipment Export

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SME Times News Bureau | 01 Jun, 2010
Commerce and Industry Minister, Anand Sharma will soon meet Finance Minister, Pranab Mukherjee to discuss the issue of extending the interest subsidy of 2 percent on pre and post-shipment export credit to all export sectors which are still not doing well, a media report said Monday.

"We have taken it up with the Finance Ministry. The interest subsidy needs to be extended to all the sectors in trouble," the Commerce Secretary, Rahul Khullar, was quoted as saying.

India's exports maintained an upward trend for the sixth consecutive month, growing by 36.2 percent to $ 16.887 billion in April this year from $ 12.397 billion in the same month of 2009. But the jump in exports can be partly attributed to a low base effect and there are some concerns that the ongoing debt crisis in the euro-zone could dampen demand.

Khullar said, as stated by the media report, that the possibility of rising interest rates has made the case stronger for interest subsidy to sectors in the red till this fiscal-end.

Recently, a number of industry bodies have been asking for incentivising the export sector considering tough global market conditions and stagnant credit offtake.

The Associated Chambers of Commerce and Industry (ASSOCHAM), in its proposal to the government recently, had urged the government to incentivise exports to help India grow its external engagements, especially in rewarding corners such as Latin America, and African continent.

Another industry body, the Federation of Indian Export Organisations (FIEO), also demanded incentives for value addition in exports and regulated rates of export credit considering tough global market conditions and stagnant credit offtake.