Allow export incentives to stabilize export growth

Union Finance Minister Mr. Pranab Mukherjee has been urged to continue with the export incentive in the Union Budget 2010-2011 to sustain growth and stability in the export sector. Union minister of state for commerce & industry Mr. Jyotiraditya Scindia at an interactive session said "We've urged the finance minister to offer cheap dollar credit at 1% over Libor (London Interbank Offered Rate) to exporters, against the present 3.5% over Libor. We've also asked the finance ministry to extend the 2% interest subvention scheme on rupee export credit and benefits enjoyed by EoU units."

Incidentally, last year Reserve Bank of India (RBI) had extended the incentive from September 30, 2009 to March 31, 2010 to support the labour-intensive sectors like textiles, carpets, handicrafts etc. which were badly hit due to the demand slump in US and Japan.