Following is the text of the statement made by Finance Minister, Shri P. Chidambaram in Parliament on further support to export sectors on account of Rupee appreciation.
“The rupee appreciated 9.7% against the US$ between April 3, 2007 and November 20, 2007. On a year on year basis, between October 2006 and October 2007, the appreciation of the rupee against US$ has been 15.1%.
The rupee appreciation has been less relative to other hard currencies as indicated in the table below.
Click here to view more:
November 2007 Package:
Leather, handicrafts, marine products and textile sectors are particularly hard hit by the appreciation of the rupee in view of its low import intensity and large value added features. The export industry and industry associations met the Prime Minister.
I also had extensive meetings with them together with Banks. Based on these meetings, we are now offering the following further support to exporters:
Additional subvention of 2% (in addition to the 2% already offered earlier) in pre-shipment and post-shipment credit to the following sectors:
- Leather and Leather manufacturers
- Marine products
- All categories of textiles under the existing scheme including RMG and carpets but excluding man-made fibre
- Handicrafts
The total subvention will be subject to the condition that the interest rate, after subvention, will not fall below 7%, which is the rate applicable to the agriculture sector under priority lending.
Press Information Bureau Government of India
marketing@alchempro.com
