Govt announces incentives to boost exports
Commerce, Industry and Textiles Minister Anand Sharma today announced additional incentives in order to boost exports.
These incentives came in the backdrop of the Annual Supplement of the Foreign Trade Policy announced on June 5, 2012.
Speaking to media here, Mr Sharma said the 2 per cent Interest Subvention Scheme on rupee export credit which is available to certain specific sectors, including handicrafts, processed agriculture products, sports goods and toys, has been given an extension up to March 31, 2014.
At present, the Scheme is scheduled to end on March 31, 2013.
In addition, Small and Medium Enterprises (SMEs) for all sectors will now be able to avail the benefits of the Scheme.
While highlighting that the engineering sector has been a major contributor for both job creation and value addition of Indian manufacturing, Mr Sharma extended the benefits of 2 per cent interest subvention to certain specific sub-sectors of the engineering sector.
"They will receive this benefit from the last quarter of the current financial year, that is, from 1st January 2013 till 31st March 2014," said Mr Sharma.
The Minister also announced the introduction of a "pilot scheme" of 2 per cent Interest Subvention for Project Exports through EXIM Bank for countries of SAARC region, Africa and Myanmar.
Speaking about the project, he said, "The scheme will be operational immediately for a combined worth of 500 million dollars to begin with. The interest subvention would be linked to the Buyer's Credit Scheme which was introduced in the last financial year being implemented through EXIM Bank, ECGC and the National Export Insurance Account."