ANNOUNCEMENT 24 May 2013In May 2013, the government of India announced a change in financial export support.
NUMBER OF INTERVENTIONS
On 24 May 2013, the Reserve Bank of India through Circular DBOD. Dir.BC. No.94/04.02.001/2012-13 extended the list of products eligible for an interest rate subvention scheme on export credit. Specifically, it added 101 tariff lines of engineering goods as well as 6 tariff lines of textile goods (both at 4 digit levels) as eligible for the scheme.
The subvention scheme provides an additional 2% interest reduction on pre-shipment and post-shipment Rupee export credit for employment oriented export sectors (see related measure).
The measure is effective retroactively from 1 January 2013. However, the implementation date is set at 24 May 2013 as trade flows for the stated tariff lines may only have been affected after the announcement.