Extension of interest subsidy scheme to merchant exporters will help them promote outbound shipments: Prabhu

New Delhi, Jan 4 (KNN) Extension of 3% interest subsidy scheme to merchant exporters will help them promote outbound shipments, Commerce Minister Suresh Prabhu said.

The government decided to provide 3% interest subsidy to merchant exporters, entailing an expenditure of Rs.600 crore, to enhance liquidity with a view to boosting outbound shipments.

Sectors that will be benefited from the decision include agriculture, textiles, leather, handicraft and machinery.

Prabhu tweeted, “Inclusion of merchant exporters in the scheme is expected to make them more competitive, encouraging them to export more products manufactured by Micro, Small and Medium Enterprises (MSMEs) adding to country’s exports.”

During April-November 2018-19, the country’s merchandise exports grew by 11.58% to $217.5 billion.

Prabhu had time and again raised the issue of declining export credit for exporters.

Loans to exporters should be considered as priority sector lending by banks, Prabhu suggested.