The government offered a Rs 2,000-crore dole to the troubled export sector as it faces sagging shipments and rising trade deficit by raising the interest subsidy rate to 3 percent and promised to clear pending claims expeditiously."A number of steps are under way to augment exports. I have offered him (commerce minister Anand Sharma) full support and provided, today, additional funds of Rs 2,000 crore. This will include increasing the interest subvention from 2 percent to 3 on certain exports," finance minister P Chidambaram said. Merchandise exports declined 1.4 percent to $72.46 billion in the June quarter, pushing up trade deficit and current account deficit.
Chidambaram said he has provided Rs 450 crore to meet the additional expenses for the remaining part of the current fiscal on account of hiking interest subsidy to 3 per cent. He also said about Rs 1,550 crore was the last year's balance which would be paid under various incentive programmes.At present the interest subvention for exporters, which is a kind of interest subsidy, is at 2 percent. Earlier, Sharma said all efforts would be made to clear claims of exporters. "The rate of interest subvention from tomorrow which would be available to exporters, would be enhanced to 3 percent", Sharma said adding exercise is on to extend this benefit to more sectors.
Currently, the benefit is available to sectors like MSMEs, handlooms, handicraft, carpets, toys, sports goods, processed products, besides certain engineering and textiles items."The government is making available the required resources to clear all claims of the exporters from January 1 until now and the provisions are being made to ensure that claims of all the exporters are settled forthwith", he said.The commerce ministry, he said, has called a meeting of Board of Trade on August 27 to consider more steps to give a boost to exports, hit by global slowdown.
Merchandise exports has declined 1.4 percent to $72.46 billion in the June quarter. The government is also considering raising plan allocation for market access initiative, market development assistance and central assistance to states for developing export infrastructure and other allied activities scheme.On December 26, 2012, the government had extended two per cent interest subsidy for one more year till March 2014.And again in April, government announced a slew of measures including extension of the popular EPCG scheme to all sectors and sops for SEZs to boost shipments.
"The government is very much concerned about the weak exports and the continuing trade account imbalance as well as the deficit which needs to be addressed," Sharma said.He said the government had set an modest export target of $325 billion for this fiscal due to global uncertainties. "Let us see the performance of second quarter".
