Sitharaman moves Cabinet note on interest subvention scheme

To give a fillip to exports, the Commerce Ministry has moved a Cabinet note on a proposal to provide cheaper credit access to exporters from various sectors under the interest subvention scheme."We have moved a Cabinet note on the interest subvention scheme for inter-ministerial consultation. I hope the scheme should encourage exports," Director General of Foreign Trade (DGFT) Pravir Kumar told PTI.Kumar, however, did not elaborate on the subvention rate or the sectors.Under the interest subvention scheme, exporters are provided credit at subsidised rates by banks which are later compensated by the government.Loans at subsidised rates will help exporters boost shipments as the country's exports stayed in the negative zone in the past seven months.Last week, Commerce Minister Nirmala Sitharaman had told Parliament that the interest subvention scheme for various sectors was under consideration of the government.The previous interest subvention scheme was available up to March 31, 2014.For the seventh month in a row, India's exports fell 15.82 percent in June to USD 22.28 billion.