ANNOUNCEMENT 09 Aug 2010
In August 2010, the government of India announced a change in financial export support.
NUMBER OF INTERVENTIONS
On 9 August 2010, the Reserve Bank of India through Circular DBOD. Dir.(Exp).BC. No.36 /04.02.001/2010-11 extended the interest subvention on Rupee export credit to include 4 additional sectors. Earlier Handicrafts, Carpets, Handlooms sectors and Small and Medium Enterprises were covered for the interest credit.
With this measure specified sub-sectors under Leather and Leather Manufacturers, Jute Manufacturing, Engineering Goods and Textiles have also been covered. The interest credit is available for export credit advanced from 1 April 2010 to 31 March 2011.
The subvention scheme provides a 2% interest reduction on pre-shipment and post-shipment Rupee export credit for employment oriented export sectors.
The measure is effective from 1 April 2010 however the implementation date is set at 9 August 2010 as trade flows for the stated sectors may only have been affected after the announcement.