JOIN US“Rupee export credit interest subvention to scheduled commercial banks is on the agenda of the Cabinet Committee on Economic Affairs meeting,” government sources said.
High interest rates
Hit by high interest rates and rising raw material costs, exporters are seeking bank loans for the small units at 7.0-7.5 per cent and nine per cent for the larger firms.
“Incentives are required as interest rates are high. Exports are declining,” President of the Federation of Indian Export Organisations (FIEO) Ramu Deora said.
Biting into exports
The Eurozone crisis has been biting Indian exports which grew year-on-year by 10.8 per cent to US$19.9 billion in October, the lowest in the last two years.
From a peak of 82 per cent in July, export growth has been slipping to 44.25 per cent in August, 36.36 per cent in September and 10.8 per cent in October.
Last month, the government had announced two per cent interest subvention for carpets, handlooms, handicrafts and small-scale industry.