In order to partially offset the high cost of credit for the exporters, 2% Interest subvention scheme was introduced. Prior to June, 2012, the scheme was available to Handlooms, Handicrafts, SMEs and carpets sectors. In June 2012, it had been extended to labour intensive sectors, namely, Toys, sports goods, processed agricultural products, and readymade garments, in addition to the four sectors benefitting from the scheme earlier. Further, the scheme has been widened to include 134 sub-sectors of Engineering sector w.e.f. 1st January, 2013.

This information was given by the Minister of State in the Ministry of Commerce & Industry, Dr. D Purandeswari in a written reply in the Rajya Sabha today.

DS/RK

(Release ID :94022)

Interest subvention extension increases subsidised credit access for exporters by expanding eligible sectors and subsectors. The Interest subvention scheme reduces exporters' credit costs and has been expanded from Handlooms, Handicrafts, SMEs and Carpets to include Toys, Sports Goods, Processed Agricultural Products and Readymade Garments, and was further widened effective 1 January 2013 to cover a comprehensive list of engineering subsectors, thereby enlarging the eligibility framework for subsidised export finance.