India's apex bank, the Reserve Bank of India decided to extend the 2% interest subsidy on export credit up to September 2009, reported the PTI. The interest subsidy scheme was to end on March 31, 2009. The decision followed the announcement made by the Finance Minister Pranab Mukherjee in the interim budget that the scheme would be extended.
India's exports grew 30% in the first half of the current fiscal before entering into negative zone and plunging by 12.1% in October. The exports are declining since then and have dipped further by an estimated 21% in February. The government recently revised its export target downwards to $175 billion due to the global economic turmoil from its earlier target of $200 billion.
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