In order to enhance liquidity with a view to boosting outbound shipments, The Cabinet Committee on Economic Affairs (CCEA) has decided to provide a 3% interest subsidy to merchant exporters, entailing an expenditure of Rs 600 crore. This will cover hundreds of items produced by labour-intensive sectors like agriculture, textiles and leather that also make up for a sizeable chunk of micro, small and medium enterprises (MSMEs). The proposal will entail benefits of around Rs 600 crore to exporters on interest equalisation for the remaining period of the scheme.
CCEA further asserted that it is expecting that the inclusion of merchant exporters in the scheme will make exporters more competitive, encourage them to export more products manufactured by MSMEs. Additional exports by them will increase production by MSME giving a fillip to employment generation as MSME are generally in the employment-intensive sectors.
Besides, in April 2015, the government had launched the interest subsidy scheme for five years for all manufacturing exporters. However, merchant exporters were not covered under the scheme.
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