ANNOUNCEMENT 01 Dec 2008

In December 2008, the government of India announced a change in financial export support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



DBOD.Dir.(Exp).BC.No. 101 /04.02.01/2008-0
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=4712&Mode=0
DBOD.Dir.(Exp).BC.No.26 /04.02.001/2009-10
https://rbi.org.in/scripts/NotificationUser.aspx?Id=5193&Mode=0

DBOD.Dir.(Exp).BC.No. 117 /04.02.01/2008-09
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=4901&Mode=0

DBOD.Dir.(Exp).BC.No.38 /04.02.001/2011-12
https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=6756

DBOD.Dir.(Exp).BC.No.112/04.02.001/2011-12
https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=7283

DBOD.Dir.(Exp)BC.No.70/04.02.001/2012-13
https://rbi.org.in/scripts/NotificationUser.aspx?Id=7804&Mode=0




Inception date: 01 Dec 2008 | Removal date: 31 Mar 2014
Still in force

Other export incentive

Effective 1 December 2008, the Reserve Bank of India (RBI) implemented an interest rate subvention scheme for export credit in designated sectors. The interest rate subvention takes the form of a lower interest rate ceiling for export credit.
 
In a more general export credit promotion scheme (see related measure), the RBI caps the interest rate on export credit at the Benchmark Prime Lending Rate (BPLR) minus 2.5 percentage points. Under the new scheme, designated sectors will receive a discount of up to 4.5 percentage points from the BPLR. However, the RBI demands that participants pay no less than 7 percent after the subvention.
 
The sectors eligible for the subvention are enumerated as:

  1. Textiles (including Handloom)
  2. Handicrafts
  3. Carpets
  4. Leather
  5. Gems and Jewellery
  6. Marine Products, and
  7. Small & Medium Enterprises (defined as enterprises with invested capital worth less than Rs. 100 million (USD 2 million).)

- The scheme was initially announed for the period 1 December 2008 to 31 March 2009. On 25 March 2009, it was extended unchanged until 30 September 2009 and further until 31 March 2010 on 31 July 2009.

- The scheme was extended for the year 2010-11 on 23 April 2010 but the eligible sectors were reduced to Handicrafts, Carpets, Handlooms and Small and Medium Enterprises.

- On 11 October 2011, the scheme was further extended to the 4 sectors as above for the period 1 April 2010 to 31 March 2011.

- On 19 June 2012, the scheme was extended for the period 1 April 2011 to 31 March 2012 and 4 additional sectors have been included (see related state act).

- On 14 January 2013, the scheme was extended, with additional engineering goods eligible, for the period 1 April 2013 to 31 March 2014 (see related state act).

AFFECTED PRODUCTS

 
030199 030229 030232 030233 030247 030283 030289 030326 030339 030341 030342 030343 030349 030353 030354 030357 030383 030389 030484 030485 030489 030491 030492 030499 030559 030571 030611 030612 030614 030617 030624 030626 030627 030749 030759 030799 410411 410419 410441 410449 410530 410621 410622 410711 410712 410719 410791 410792 410799 411200 411310 411390 411410 411420 411510 540110 540219 540220 540231 540233 540244 540245 540246 540247 540249 540252 540262 540269 540310 540331 540332 540341 540349 540419 540490 540710 540720 540752 540753 540754 540761 540769 540772 540773 540781 540782 540791 540792 540793 540794 540833 540834 550120 550320 550330 550410 550510 550630 550700 550810 550921 550922 550931 550932 550941 550942 550951 550952 550953 550959 550962 550969 550999 551011 551012 551020 551030 551090 551211 551219 551299 551311 551313 551319 551321 551329 551349 551411 551412 551419 551430 551511 551512 551513 551519 551591 551599 551612 551623 560121 560311 560312 560410 560490 560500 560749 560790 560811 560819 560900 570110 570190 570210 570220 570231 570232 570239 570241 570242 570249 570250 570291 570292 570299 570310 570330 570390 570500 580136 580190 580219 580300 580620 580632 580890 581010 581091 581092 581099 590190 590210 590290 590310 590390 590699 590700 590800 591000 600191 600240 600410 600490 600521 600621 600622 600624 600631 600643 600690 610120 610130 610220 610310 610322 610323 610332 610342 610343 610349 610419 610422 610423 610432 610439 610442 610443 610444 610452 610453 610462 610463 610469 610510 610520 610590 610610 610620 610690 610711 610712 610721 610791 610821 610822 610831 610832 610839 610891 610910 610990 611011 611020 611030 611090 611120 611190 611211 611300 611420 611430 611490 611595 611596 611599 611610 611693 611710 611780 620111 620112 620191 620192 620193 620211 620212 620213 620291 620292 620293 620299 620311 620312 620319 620322 620329 620331 620332 620333 620339 620341 620342 620343 620349 620412 620413 620419 620422 620423 620429 620431 620432 620433 620439 620442 620443 620444 620449 620451 620452 620453 620459 620461 620462 620463 620469 620520 620530 620590 620610 620630 620640 620690 620711 620721 620791 620799 620819 620821 620822 620829 620891 620920 620990 621010 621040 621050 621111 621132 621133 621139 621142 621143 621149 621210 621410 621420 621430 621440 621490 621600 621710 621790 630120 630130 630140 630190 630210 630221 630222 630231 630232 630239 630251 630253 630259 630260 630291 630293 630299 630391 630392 630399 630419 630491 630492 630493 630499 630510 630520 630532 630533 630539 630612 630619 630690 630710 630790 630900 631010 710210 710221 710229 710231 710239 710310 710391 710399 710490 711311 711319 711320 711411 711419 711420 711510 711590 711620
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