The Government of India will soon come out with an interest subvention (subsidy) scheme for exporters, commerce and industry minister Nirmala Sitharaman has said. Speaking at a function in New Delhi, Sitharaman said the soon to be announced scheme would encourage sectors with high potential. In view of decline in exports in recent months, the ministry is discussing with various industry groups to find ways to increase exports and also to explore new markets.
“The triggers for improving the export performance are not really happening,” Sitharaman said. She cited two reasons for fall in exports—depreciation of currencies, particularly euro, and sluggish international demand.
A 3 per cent interest subvention scheme for exporters was in place earlier, but it ended on March 31, 2014. Under the scheme, exporters get loans at lower (subsidised) interest rate, which is expected to boost export shipments.
