MUMBAI (Reuters) - The government increased subsidy on interest rates charged to small exporters under a so-called interest equalisation scheme, the Reserve Bank of India said on Thursday, to boost exports.
The eligible exporters will be able to avail rupee export credit from banks at 5 percent lower, compared to the earlier 3 percent, the RBI said.
India’s October exports fell to a three-month low of $26.98 billion.
Prime Minister Narendra Modi’s government has been keen to provide financial support to small businesses otherwise known as the micro, small and medium enterprises which have been hit hard following a note ban exercise and a new goods and services tax.
This is the latest step after the central bank decided to consider allowing banks to restructure stressed loans to small businesses following persistent demand from the government.
Reporting by Suvashree Dey Choudhury; Editing by Subhranshu Sahu