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Union government okays 3% interest subvention scheme for exporters

Exporters

The Union government on November 2015 approved the long-awaited interest subvention scheme that would allow exporters to avail loans from banks at a three per cent lower rate. The aim is to boost exports. The decision was taken yesterday at a meeting of Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

The subsidy scheme for exporters which will have a financial implication of about 2,700 crore rupees. Power Minister Piyush Goyal said after cabinet meeting, the interest subvention scheme will be applicable from April 1, 2015 for next five years.The scheme would be available to all exports of Micro, Small and Medium Enterprises (MSME) and 416 tariff lines. But it would not be available to merchant exporters. The scheme covers mostly labour intensive and employment generating different sectors. The decision is significant as India's exports fell for 11 months in a row and was down 17.5 percent in October due to a global slowdown.