(MENAFN- KNN India) Exporters will continue to get access to subsidised credit, with the government set to reintroduce the interest subvention scheme for the labour-intensive sectors in the coming months.
"The finance ministry has given us the sanction for extending the interest subvention scheme for exports for three years. We are working out the details of the scheme and hope to be ready with it in two-three months," commerce secretary Rajeev Kher said at a seminar recently. An allocation of Rs 1,650 crore has been made for this in the budget for 2015-16, he said.
The 3% interest subvention scheme for exports lapsed in April last year, affecting working capital and margins of Indian exporters. The scheme provides credit to exporters at a subsidised rate by banks, which are later compensated by the government.
Warning about the changing global trade scenario, Commerce Secretary, Rajeev Kher asked the industry to enhance competitiveness at the global level without the support of subsidies.
Kher said that sectors such as textiles which are increasingly recognised as competitive in the global context must start building portfolio and services in a way that they may face this reality as and when it comes.(KNN/DB)
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