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Sharma in export sop pitch

The commerce ministry plans to seek an extension of the cheap export credit scheme for sectors such as textiles, engineering and leather goods from the finance ministry because these industries are still not doing well.

"I am concerned about chemicals, textiles, engineering and leather which need interest subvention (subsidy). I am going to take it up with the finance minister. We are looking at continuation of interest subvention for some of these sectors," commerce minister Anand Sharma said.

The two-per cent interest subvention scheme was to expire on March 31, 2010. Finance minister Pranab Mukherjee in the budget has proposed to extend it for handicrafts, carpets, handlooms and SMEs for one more year. Earlier, the scheme covered more sectors such as leather, textile, and gems and jewellery.

"The interest subvention should be extended to textiles, including garments, leather, gems and jewellery, marine and other sectors as these segments are still expecting a negative growth in 2009-2010. A few of them may have shown a positive growth but that too on a very low base," A. Sakthivel, president of the Federation of Indian Export Organisations, said.

"The global recession seems to be lifting. But, trade recovery is still vulnerable and fragile, given the fact that it is mainly on account of government support," H.A.C. Prasad, senior economic adviser to the finance ministry, said.

Source : The Telegraph