The Centre on Wednesday announced three per cent interest subsidy scheme for exporters to help them cope with weak global demand. Financial implication of the proposed scheme is estimated to be in the range of Rs 2,500 crore to Rs 2,700 crore per year.

However, the actual financial implication would depend on the level of exports and the claims filed by the exporters with the banks. Funds to the tune of Rs1,625 crore under non-plan head of account are available under Demand of Grants for 2015-2016, which would be made available to RBI. The duration of the scheme would be five years with effect from April 2015.

Federation of Indian Export Organisation (FIEO), president S.C. Ralhan said that the scheme will provide stability and will help the exporters to factor the same in their pricing to become more competitive.

Mr Ralhan said that it is good that government has announced the scheme with effect from April 1, 2015 with three per cent benefit for existing sectors of exports and few sunrise sectors of exports. He said that credit cost has become more important as the cycle of exports has elongated due to global contraction in demand and liquidity forcing them to borrow for longer period.