India unveils measures to boost exports
2012-12-26 14:56:06
India announced additional incentives to support exports amid weak global demand, stepping up efforts to reduce its huge trade gap.
The government will extend a 2 percent interest subvention on rupee export credit for one more year till March 2014, Commerce and Industry Minister Anand Sharma said Wednesday.
Highlighting the contribution of the engineering sector to job creation and value addition, Sharma included the engineering sector into the interest subvention scheme.
"They will receive this benefit from the last quarter of the current financial year, that is, from 1st January 2013 till 31st March 2014," said Sharma. The subsidized credit program will be applicable to all small and medium-sized enterprises and to units in engineering sector.
The government also decided to introduce a pilot scheme of 2 percent interest subvention for project exports through EXIM bank for countries of SAARC region, Africa and Myanmar.
During April to November, exports declined by 6 percent to $189.22 billion and imports dropped 2 percent to $318.72 billion, leaving a trade deficit of $129.5 billion.
Sharma today said it would be difficult to achieve the export target of $360 billion during this fiscal year.