Foreign trade policy: Govt to extend interest subsidy

New Delhi: Amid global economic problems, the government today unveiled 7-point strategy to boost exports which include extension of interest subsidy scheme by one year till March 31, 2013.

“We have now decided to extend the scheme (interest subvention) for another year till March 31, 2013 and expand its coverage to include other labour-intensive sectors namely toys, sports goods, processed agricultural products and ready made garments”, Commerce Minister Anand Sharma said while releasing annual supplement to the Foreign Trade Policy here.

“The underline philosophy of this year’s supplement is based on seven broad principles”, he said, adding these would include added thrust on employment-intensive industry and continuation of market diversification strategy.

The Minister also exuded confidence that India would be able to sustain 20 per cent export growth in the current fiscal. “It is our expectation that with these measures, we shall be able to sustain an annual export growth of 20 percent this fiscal”, he said. India’s exports grew by 21 per cent in 2011-12 to touch $303 billion.

To encourage exports, the government came out with an interest subvention scheme under which 2 percent interest subsidy was given to handlooms, handicrafts, carpets and SME sector. The scheme, which has been extended by a year, was to end on March 31, 2012.

PTI