Breaking News

You are here » Indian-Commodity  :  Economy  :  Commerce ministry urges to hike rate of subsidy to 5% on credit provided to exporters


Commerce ministry urges to hike rate of subsidy to 5% on credit provided to exporters

The commerce ministry has asked its finance counterpart to increase the rate of subsidy under the interest subvention scheme to 5 percent from the existing 3 percent on credit provided to exporters. Director General of Foreign Trade (DGFT) Alok Vardhan Chaturvedi has said that the government has increased allocations towards interest equalisation scheme in the Budget to Rs 2500 crore from Rs 1,000 crore earlier for 2018-19 to encourage exports.

Commerce and Industry Minister Suresh Prabhu has said that the cost of capital in India is much higher as compared to other countries. Besides, he pointed out that infrastructure inefficiencies and logistics costs too are high as compared to India's competitors including Singapore and Malaysia. He noted that products being sold in global markets need to be at a level playing field. He added that interest subsidy to some extent neutralises infrastructure inefficiencies.

The minister further said that the incentives for exports would add up to over Rs 1 lakh crore, including the duty forgone on schemes such as Merchandise Exports from India Scheme (MEIS) and advance authorization. Besides, he noted that work is in progress to see ways to increase exports of goods and services to $1 trillion in the coming years. On whether increase in customs duties on certain items could be seen as a protectionist measure, he said that it is not, and India is one of the most open economies in the world.

Related News

View all news

Bank credit growth increases 14.5%, deposits up 9.63%

The Reserve Bank of India (RBI) in its latest report has showed that bank credit growth increased by 14.5 percent at Rs 94.29 lakh crore, while deposits grew at a tepid 9.63 percent to Rs 121.22 lakh crore......

Direct tax collection stands at Rs 7.89 lakh crore in April-January of FY19

Net direct tax collection stood at Rs 7,88,930 crore in the April-January period of current fiscal (2018-19). The Minister of State for Finance Shiv Pratap Shukla has said there were 9.92 crore direct......

Rate cut by RBI to boost economy, make loan affordable to small businesses: Goyal

After the Reserve Bank of India (RBI) cut repo rate in its latest bi-monthly policy, Finance Minister Piyush Goyal has said the RBI's this move will give a boost to the economy by providing affordable......

Top News

View all news

Kridhan Infra's arm bags order worth $36 Million

Kridhan Infra's (KIL) Singapore subsidiary -- KH Foges has bagged a new order in Singapore worth $36 Million (Rs 187 Crore). The subsidiary has been contracted to execute Piling Works & Earthworks......

Bharti Airtel upgrades 4G network in Mumbai

Bharti Airtel has upgraded 4G network in Mumbai, with the deployment of 'LTE 900 technology' that will enhance indoor network coverage and improve network experience for customers.With the roll-out of......

Refex Industries to raise Rs 25 crore via Rights Issue

Refex Industries has received approval to raise of funds by way of offer and issue of Equity Shares to the Members of the Company on Rights Issue at such price and rights entitlement ratio for an amount......