The Government of India has announced extension of two percent interest subsidy on some labour-intensive industries, including textiles, garments and handicrafts, for one more year till March 2014.
Addressing a press conference, Commerce and Industry Minister Anand Sharma said the interest subvention scheme announced on June 5 this year is being extended till March 31, 2014, in order to help the sectors that come under the purview of the scheme.
Mr. Sharma, who is also the Union Textiles Minister, said the decision to extend the interest subvention scheme was taken in view of the country’s overall exports falling by 5.95 percent year-on-year to US$ 189 billion during the first eight months of the ongoing fiscal year.
The latest step would also help in reducing the country’s trade deficit, which stood at US$ 129.5 billion during April to November this year, the Minister said. While blaming the economic slowdown in Western countries for sluggish exports, the Minister lauded the Government’s efforts at diversifying to other markets in Africa, South America and Asean countries.
He said India continues to maintain its presence in the developed markets of the US and the EU. Meanwhile, India’s bilateral trade with Asean, Africa and South American countries has reached US$ 80 billion, US$ 65 billion and US$ 30 billion, respectively.
However, India’s exports of readymade garments, carpets and jute products declined by 8 percent, 11 percent and 14 percent respectively, during the April-November period.
The Minister also announced extension of two percent interest subsidy on incremental exports that would be achieved during January-March 2013 over the period January-March 2012.
