Government's decision to extend the interest subsidy scheme for five years will help in controlling dip in exports and increasing competitiveness of domestic products in the global market.
Welcoming the announcement of "Interest Equalization Scheme" on pre and post shipment rupee export credit, Federation of Indian Export Organization (FIEO) said it will make pricing of exporters more competitive.
"Credit cost has become all the more important as the cycle of exports has elongated due to global contraction in demand and liquidity forcing the exporters to borrow for longer period," it said in a statement.
The benefit under the scheme will help Indian exporters to compete more effectively against their competitors, it added.
Sharing similar views, the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) said the move would boost the country's exports.
Concerned over continuous decline in exports, government today announced 3 per cent interest subsidy scheme for exporters which will have a financial implication of about Rs 2,700 crore. The scheme is for a period of five years.
"The decision will give an impetus to the falling exports of the country," SRTEPC Chairman Anil Rajvanshi said in a statement.
SRTEPC hopes that the scheme is uniformly applied to all exporters without any discrimination and conditionality, he said.
CII too said that the Cabinet's initiative would give the much-needed boost to exports which have contracted by 18 per cent in the year so far.
