Extension of Interest subsidy scheme will boost exports, says Suresh Prabhu

Posted by Daily Shipping Times on 07-01-2019        Tweet

NEW DELHI : Extension of 3 per cent interest subsidy scheme to merchant exporters will help them promote outbound shipments, Commerce Minister Suresh Prabhu said recently.

“Inclusion of merchant exporters in the scheme is expected to make them more competitive, encouraging them to export more products manufactured by MSMEs adding to Country’s exports,” Prabhu said in a tweet.

The Government recently decided to provide 3 per cent 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. The interest equalisation or subsidy scheme for pre- and post-shipment rupee export credit started on April 1, 2015. The scheme will end in March 2020.

During April-November 2018-19, the Country’s merchandise exports grew by 11.58 per cent to $217.5 billion. Prabhu had time and again raised the issue of declining export credit for exporters. He had suggested that loans to exporters should be considered as priority sector lending by banks.