A fresh package of Rs 500 crore in the form of interest subvention has been announced to compensate for the reduction in their profits.
Under the scheme, the exporters are given two per cent relief in pre-shipment and post-shipment credit in sectors such as leather and leather products, marine products, handicrafts, textiles and carpets.
"The measures will ensure mitigation of the effect of the rupee appreciation across the export sectors, make them internationally competitive and will also enable them achieve export targets," the officials said.
The budget is also likely to see a provision for interest subvention to all scheduled commercial banks in respect of the rupee export credit.
The government has already announced Rs 300 crore under the interest subvention scheme for exporters.
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By Mr Chitranjan, Section EXIM Policy
Posted on Fri Feb 22, 2008 at 02:38:36 AM EST
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This rate is applicable to the agriculture sector under priority sector lending scheme, the spokesperson added.
The scheme will provide relief to the exporters and mitigate (their) hardships on account of unanticipated and steep rupee appreciation.
The Federation of Indian Export Organisation (FIEO) president Ganesh Gupta expressed hope that a more comprehensive package would be announced soon to offset the continuing rupee appreciation and inherently high transaction costs.
FIEO has also thanked the ministry for extending the service tax refund facility to more taxable services provided by GTAs.
The export of traditional items especially handicraft, textile and carpets have suffered on account of 15 per cent appreciation in the value of the rupee against the dollar in the last 16 months.
The government has earlier announced various packages totalling Rs 5,200 crore to help the exporters.
Source: Tribune News Service Feb-22-08
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