Mumbai: The Reserve Bank on Friday extended the
interest subsidy of two per cent to exporters, battling demand
recession in western economies, by six months till March 2010.
"It has been decided to extend interest subvention of two
per cent on export credit for a further period of six months
i.e from October 1 till March 31, 2010," the RBI said in a
statement.
With a view to insulate the employment-oriented sectors
like handlooms, handicrafts, carpets, leather gems and
jewellery and marine products, the government in its interim
budget for 2009-10 had extended the period for concessional
finance to exporters till September.
Exporters are facing payment defaults as several western
economies like the US and members of EU are in the grip of
recession.
After registering a handsome growth rate of over 30 per
cent in the first half of the current fiscal, India's exports
entered the negative zone in October 2008. In the previous
fiscal, the overseas shipment has grew barely by 3.4 per cent
to USD 168.7 billion.
Bureau Report
First Published: Friday, July 31, 2009, 21:37