New Delhi: The government is likely to extend the subsidised loan facility by one more year to exporters as part of the package expected to be announced on December 26, to help them tide over the impact of global slowdown.
“The Commerce Ministry has discussed all the issues with its Finance counterpart. They may extend the interest subvention scheme for one more year and this time sectors like engineering and textiles would be included,” an official said.
Last time in June, while announcing the foreign trade policy, Commerce and Industry Minister Anand Sharma had extended the scheme till March 2013. It was mainly available for small and medium enterprises.
As part of the incentive, the government is also likely to reward those exporters who have performed well despite the demand slowdown.
“They may get duty scrips. The incentives will act as a cushion for exporters in the wake of declining exports and global slowdown,” the official said. The bulk of India’s exports of about $300 billion go to the US and Europe which have been facing demand slowdown.
Although exporters have been trying to find new markets within Asia, Africa and Latin America, the impact of slowdown in the western markets is likely to be significant. During the April—November this fiscal, the country’s shipments have shrunk by 5.95 per cent to $189.2 billion.