image

Rate of Interest Subvention Increased from 2% to 3%

Presently the rate of Interest Subvention for credit obtained by exporters is 2%. There has been persistent demand to both increase the rate of subvention and also to widen the coverage. At present, all exporters who are micro and small enterprises, irrespective of the export sector, are beneficiaries of this scheme. In addition, the exporters belonging to the following sectors are eligible to receive interest subvention : (i) Handlooms (ii) Handicraft (iii) Carpets (iv) Toys and Sports Goods (v) Processed Agricultural Products (vi) Readymade Garments (vii) 235 tariff lines in Engineering Sectors, and (viii) 6 tariff lines in Chapter 63 of ITC(HS) (textiles made ups).

The Commerce Minister had taken up this issue with the Finance Minister. Both the Ministers have met on Friday 26th July to consider this request from our exporters. It has now been decided by the Government to increase the rate of Interest Subvention from the existing 2% to 3%. All pending claims would also be cleared immediately.

This will benefit the exporters of small and medium enterprises and also the most of the labour intensive sectors. Their cost will come down appropriately by increase in the rate of interest subvention. The Commerce and Industry Minister has convened a meeting of Board of Trade (BoT) on 27th August, 2013 to review the current situation and the international trade scenario.

Tags: Board of TradeCommerce MinisterExportGovernmentHandicraftInterestMinister of Industry (Canada)Subsidy

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates