Presently the rate of Interest Subvention for credit obtained by exporters is 2%. There has been persistent demand to both increase the rate of subvention and also to widen the coverage. At present, all exporters who are micro and small enterprises, irrespective of the export sector, are beneficiaries of this scheme. In addition, the exporters belonging to the following sectors are eligible to receive interest subvention : (i) Handlooms (ii) Handicraft (iii) Carpets (iv) Toys and Sports Goods (v) Processed Agricultural Products (vi) Readymade Garments (vii) 235 tariff lines in Engineering Sectors, and (viii) 6 tariff lines in Chapter 63 of ITC(HS) (textiles made ups).

The Commerce Minister had taken up this issue with the Finance Minister. Both the Ministers have met on Friday 26th July to consider this request from our exporters. It has now been decided by the Government to increase the rate of Interest Subvention from the existing 2% to 3%. All pending claims would also be cleared immediately.

This will benefit the exporters of small and medium enterprises and also the most of the labour intensive sectors. Their cost will come down appropriately by increase in the rate of interest subvention. The Commerce and Industry Minister has convened a meeting of Board of Trade (BoT) on 27th August, 2013 to review the current situation and the international trade scenario.

DS/RK

(Release ID :97493)

Interest subvention rate increased for exporters, expanding eligible sectors and directing immediate clearance of pending claims. An administrative increase in the Interest Subvention rate for exporters' credit has been announced, maintaining eligibility for all micro and small enterprise exporters and specified sectoral beneficiaries (handlooms, handicrafts, carpets, toys and sports goods, processed agricultural products, readymade garments, selected engineering tariff lines and certain textile made-ups). The government has directed immediate clearance of pending claims and scheduled a Board of Trade review to assess the export environment and implementation implications.