Interest rate subsidy for export sector extendedFebruary 16th, 2009 - 3:49 pm ICT by IANS
New Delhi, Feb 16 (IANS) With export growth falling on account of the global economic slowdown, the government Monday announced the extension of subsidy on interest of credit for labour-intensive export units till September-end.
The interest subvention of 2 percent will be extended beyond March 31 till Sep 30, Minister for External Affairs Pranab Mukherjee said while presenting the interim budget in parliament.
The subsidy was specifically on interest on pre- and post-shipment credit for employment-oriented sectors like textiles, carpets, leather, gems and jewellery, marine products and other small and medium enterprises.
The total financial outgo for the government due to this extension will be around Rs.500 crore (Rs.5 billion) during 2009-10.
Export growth has slowed down for the first nine months of this year to 17.1 percent, a significant fall from the average growth rate of 26.4 percent registered over the past four years.