Govt extends interest subsidy to exporters till Sept

NEW DELHI: The Government extended interest subsidy till September for exporters, who said they were expecting more in the face of extraordinary challenges being faced in overseas markets.

The interim budget for 2009-10, presented in Parliament, extended the period for concessional finance to exporters, hit hard by recession in major global markets. Finance Minister Pranab Mukherjee presented the interim budget.

Earlier, the interest subvention of two per cent could be availed of till March.

"The extension of interest subvention is a welcome step but we were expecting the extension till December," Federation of Indian Export Organisations (FIEO) President A Sakthivel said.

He said exporters are also expecting the abolition of fringe benefit tax and increase in the duty drawback rates.

After registering a handsome growth rate of over 30 per cent in the first half of the current fiscal, India's exports entered the negative zone in October 2008 and dipped by 12.1 per cent.