Worried over continuous decline in exports, the commerce ministry is considering interest subsidy benefits for textile sector including garments.
The interest subvention scheme of three per cent ended on March 31, last year. Under the interest subvention scheme exporters get loans at affordable rates. Federation of Indian Export Organisations (FIEO) is demanding to extend the interest subvention scheme with retrospective effect from April 2014.
As textile sector accounts for about six per cent of the total exports, there is a need to support this sector by providing credit to exporters at affordable rates, an official said. Commerce secretary, Rajiv Kher recently said that the ministry has completed discussions with the Department of Revenue. The proposal would also go to the union cabinet for its approval.
Loans at subsidized rates would help exporters to boost shipments as the country’s overall exports were in the negative zone during the last six months. India’s exports shrank by about 20.19 per cent in May to 22.34 billion US Dollar, falling for the sixth consecutive months.
