<div>Concerned over a continuous decline in exports, the Narendra Modi-led National Democratic Alliance (NDA) government has given an assurance to exporters that it will soon announce incentives, including an extension of the interest subsidy scheme.</div><div> </div><div>The Cabinet is likely to take a decision soon on extending the interest subsidy scheme for exporters as the commerce department and finance ministry have resolved their earlier differences.</div><div> </div><div>Under the interest subvention scheme, exporters will get loans at affordable rates, which will help them to boost shipments. The interest subvention scheme of 3 per cent ended on March 31, 2014. Commerce secretary Rita Teaotia has said the allocation for export incentive schemes in this fiscal has been increased to Rs 21,000 crore from Rs 18,000 crore earlier.</div><div> </div><div>Goods exports, equivalent to about 15 per cent of gross domestic product, contracted 20.7 per cent year-on-year because of continuing weak global demand. </div><div> </div><div>Economists say growth could ease to 7 per cent to 7.5 per cent in the current 2015/16 fiscal year ending in March, against a target of 8 per cent to 8.5 per cent, if the slump in global demand continues. Exporters have been lobbying for lower borrowing costs and fiscal incentives to explore untapped markets such as Africa and Latin America. Modi met business tycoons last month and assured them of government support to boost growth.</div><div> </div><div>Quite a few commentators and media columnists are of the view that the significant slump in exports has created hindrance for Asia's third-largest economy to generate enough jobs for unemployed youth. Jobs are a critical issue for the NDA government, struggling to revive growth to a rate that will create employment for the millions who join the workforce every year.</div><div> </div><div>Exporters said the Centre should immediately take steps to control the decline otherwise it would be difficult to achieve the last year's figure of $310.5 billion and it may also lead to huge job losses.</div><div> </div><div>Experts say the slowdown in exports is the mirror image of what is happening in the global economy and it has affected Indian economy badly. Also, the fall in crude prices and the decline in commodity prices have affected India's exports primarily of the value-added products.<br> </div><div>Exporters complained that banks also had not passed on the benefits of the recent rate cuts announced by the Reserve Bank of India, and credit was available to them at high interest rates of 13-14 per cent.</div><div> </div><div>"The immediate re-introduction of interest subvention for all sectors at this stage will help exporters to get credit at a competitive rate to manage their competitiveness which has been eroded because of a steep depreciation in currencies," S C Ralhan, president of the Federation of Indian Export Organisation, told <em>The Telegraph</em>. </div><div> </div><div>India aims to take exports of goods and services to $900 billion by 2020 and raise the country's share in world exports to 3.5 per cent from 2 per cent now. Exports during the past four financial years have been hovering at around $300 billion.</div>
