<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>The Reserve Bank on Tuesday announced 2 per cent interest subsidy on Rupee export credit to the labour-oriented and small scale sectors to cushion them from slowdown in the major markets like the US and Europe.<br><br>Exporters of handicrafts, handlooms and carpets will be eligible for the interest subvention to be available upto March 31, 2012, the RBI said.<br><br>The exporters in the small and medium enterprises across all the sectors would also be entitled for cheaper bank credit, subject to a minimum interest rate of 7 per cent.<br><br>In a direction to the banks, the RBI said that the government has decided to extend the scheme from April 2011 to March 2012, for the four category of exporters.<br><br>"Banks may ensure to pass on the benefit completely to the eligible exporters," it said.<br><br>The decision to help exporters was announced on a day when the high-level Board of Trade reviewed the situation arising out of renewed worries about the US economy and the debt crisis in Europe.<br><br>The BoT, headed by Commerce and Industry Minister Anand Sharma and comprising well-known industrialists, discussed issues like currency volatility, availability of dollar credit and high cost of credit.<br><br>Although India's exports grew by 54 per cent in April- August period, the time ahead is viewed as full of challenges.<br><br>"I am apprehensive about the roll-out of next seven months. I hope we should be able to achieve USD 280 billion exports this fiscal," Minister of State for Commerce and Industry Jyotiraditya Scindia said.<br><br>Exporters' body FIEO welcomed the interest subsidy but wanted more. "We were expecting 3 per cent and also for sectors like textile, gems and jewellery and engineering," it said in a statement.<br><br>(PTI)</p>