Interest subsidy for MSME exporters raised to 3%
Updated: Jul 31, 2013 06:18:42pm
New Delhi, Jul 31 (KNN) The Government today announced increase in the interest subsidy for all exporters in the micro small and medium enterprises (MSME) sector from two to three per cent giving them a boost to compete in the tough global market.
In addition, the exporters belonging to sectors such as handlooms, handicraft, carpets, toys, readymade garments etc., are also eligible to receive interest subvention.
As many as 235 tariff lines in the engineering goods will also be eligible for the increased interest subsidy.
Announcing the measures to help exporters, the Commerce and Industry Minister Anand Sharma revised downward the overall target for merchandise exports for current financial year from USD 350 billion to 325 billion in the wake of demand compression in major markets of the world.
“Presently the rate of interest subvention for credit obtained by exporters is 2 per cent. 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,” the minister said here.
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.
He said that the situation will further be reviewed on August-27.
Meanwhile, the government may consider raising plan allocation for Market Access Initiative (MAI), Market Development Assistance and Central Assistance to States for Developing Export Infrastructure and other Allied Activities (ASIDE) Scheme. (KNN/GUNJ)
Feedback: newsdesk@knnindia.co.in
In addition, the exporters belonging to sectors such as handlooms, handicraft, carpets, toys, readymade garments etc., are also eligible to receive interest subvention.
As many as 235 tariff lines in the engineering goods will also be eligible for the increased interest subsidy.
Announcing the measures to help exporters, the Commerce and Industry Minister Anand Sharma revised downward the overall target for merchandise exports for current financial year from USD 350 billion to 325 billion in the wake of demand compression in major markets of the world.
“Presently the rate of interest subvention for credit obtained by exporters is 2 per cent. 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,” the minister said here.
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.
He said that the situation will further be reviewed on August-27.
Meanwhile, the government may consider raising plan allocation for Market Access Initiative (MAI), Market Development Assistance and Central Assistance to States for Developing Export Infrastructure and other Allied Activities (ASIDE) Scheme. (KNN/GUNJ)
Feedback: newsdesk@knnindia.co.in
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