New Delhi, Nov 19: in a bid to boost exports, Indian government has announced 3 per cent interest subsidy scheme for exporters.
This move have a financial implication of about Rs 2,700 crore.
The decision was taken at a meeting of Cabinet Committee on Economic Affairs on Wednesday.
The CCEA also gave its approval for “Interest Equalisation Scheme (earlier called Interest Subvention Scheme) on Pre and Post Shipment Rupee Export Credit with effect from 1st April, 2015 for five years.”
The rate of interest equalisation would be 3 per cent, it said, adding that it will be evaluated after three years.
Financial implication of the proposed scheme is estimated to be in the range of Rs 2,500 crore to Rs 2,700 crore per year.
However, the actual implication would depend on the level of exports and the claims filed by the exporters with the banks.
Funds worth Rs 1,625 crore in the non-plan head of account re available under Demand of Grants for 2015-2016 and would be made available to the Reserve Bank, an official statement said.
The scheme would be available to all exports of Micro, Small and Medium Enterprises (MSME) and 416 tariff lines. But it would not be available to merchant exporters.
