Textiles, leather subsidy issue will be taken up shortly

Union Commerce and Industry Minister Anand Sharma on Thursday said he would take up the issue of continuation of subsidised export credit for export oriented sectors like leather, textiles and engineering goods with Finance Minister Pranab Mukherjee shortly.

“We are concerned over chemicals, textiles, engineering and leather which need interest subvention. I am going to take it up with the Finance Minister. We are looking at continuation of interest subvention for some of these sectors,'' Mr. Sharma told reporters here.

The 2 per cent interest subvention scheme was to expire on March 31, 2010, but in the budget, Mr. Mukherjee had proposed to extend it for handicrafts, carpets, handlooms and SMEs for one more year.

Earlier, the scheme covered more sectors including leather, textile, gems and jewellery.

The Federation of Indian Export Organisations (FIEO) has also approached the Finance Ministry for the subsidised credit to these sectors.

On overall exports, Mr. Sharma expressed hope that shipments would at least total $165 billion this fiscal. “I am hopeful exports this year should not be less than $165 billion against $185 billion in 2008-09,'' he added.