In a bid to revive exports, the government Wednesday announced an interest subsidy increase for exporters from the existing two percent to three percent.
The new rate would be applicable from Aug 1, Commerce and Industry Minister Anand Sharma said.
"It has now been decided by the government to increase the rate of interest subvention from the existing 2 percent to 3 percent," the commerce ministry said in a statement released here.
This will benefit the exporters of small and medium enterprises and also the most of the labour intensive sectors. Their cost will come down appropriately by increase in the rate of interest subvention.
The decision to increase subsidy for exporters was taken during a meeting Sharma had with Finance Minister P. Chidambaram July 26.
Sharma has convened a meeting of Board of Trade Aug 27 to review the current situation and the international trade scenario.
India's exports declined by 1.4 percent to $72.46 billion in the first three months of the current financial year, according to the latest official data.
