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FIEO seeks extension of interest subvention scheme for another year

15 May 2012 Evaluate

The Federation of Indian Exporters Organization (FIEO) has asked the government to extend the interest subvention scheme on rupee credit for another one year in the upcoming annual supplement to the foreign trade policy (FTP) expected to be announced in the first week of June.

Ajay Sahai, the Director General of FIEO said that 'We are of the view that the interest subvention should be extended to all export-oriented sectors'. We are expecting the Commerce Ministry to move a proposal to the Finance Ministry on this.

The scheme ended on March 31, 2012. Exporters from handicrafts, handloom, carpet, and small & medium enterprises (SMEs) sectors were provided the benefit under the scheme.

FIEO further stated that the increase in bank interest rates for exporters from 7% to over 12% in a span of two years is a serious concern and it should be addressed in order to make Indian exporters competitive against its competitors.

The organization has also recommended that additional markets and new products should be included under the Focus Market Scheme (FMS) and the Market Linked Focus Product Scheme (MLFPS). All the export related schemes which are there at the moment for the benefit of the exporters should be continued.

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