The Commerce Ministry, in order to give a fillip to exports has moved a Cabinet note on a proposal to provide cheaper credit access to exporters from various sectors under the interest subvention scheme. Director General of Foreign Trade (DGFT) Pravir Kumar said that “We have moved a Cabinet note on the interest subvention scheme for inter-ministerial consultation. I hope the scheme should encourage exports.”
Though, the details of subvention rate or the sectors were not given but under the interest subvention scheme, exporters are provided credit at subsidised rates by banks which are later compensated by the government. Loans at subsidised rates will help exporters boost shipments as the country's exports stayed in the negative zone in the past seven months in a row. India's exports fell 15.82 per cent in June to $22.28 billion, compared to $26.47 billion in the same month of the previous year due to global economic slowdown.
Pravir Kumar further said that exports are a big challenge considering sluggish global demand, he added that exporters should try other markets like Latin America, Africa, CIS and ASEAN nations besides FTA partner countries. He also said that “It is a good idea not to keep all your eggs in one basket. If we depend too much on the US and Europe, then if there is problem in one area, the whole country and the industry will suffer. So, we would like our exporters to explore possibilities in other countries.”
The interest subvention scheme was available up to March 31, 2014. Recently, Commerce Minister Nirmala Sitharaman had told Parliament that the interest subvention scheme for various sectors was under consideration of the government.