JOIN USAfter a decline in exports for seven months in a row, the government on Friday decided to give exporters a breather by agreeing to give them loan on affordable rates, a demand made by them for a long time.
Commerce and Industry Minister Nirmala Sitharaman said the ministry would soon announce export subsidy.
It would encourage the sectors that have high potential, said Sitharaman at an event here.
She said India’s exports are suffering due to weak demand in the overseas market and depreciating currencies of its export destinations, especially the euro. So, the triggers for improving the export performance are not really happening, she said.
The minister also said the ministry was in discussion with industry groups to find a solution to of the problem.
She also stressed on exploring new markets for Indian goods as there was a weakness in the traditional export destinations such as the US and Europe.
Merchandise exports in June declined 15.82 per cent to $22.28 billion compared to $26.47 billion in the same month last year. This was for the seventh straight month of decline in India’s exports. In May, the rate of decline in exports was even higher at 20.19 per cent.
Concerned over the decline, India’s premier exporters body FIEO has time and again demanded an immediate restoration of the interest subvention scheme of 3 per cent, which expired in April last year.
The scheme was expanded to 3 per cent from 2 per cent in 2013-14 for sectors including readymade garments, carpet, handlooms, handicrafts, toys and some engineering products. The Budget for 2015-16 has allocated Rs 1,625 crore to provide interest subsidy for exports.