In a bid to boost exports, the Union Cabinet will soon decide on lower premium for small exporters, commerce minister Piyush Goyal said Monday while briefing the media about the newly launched Niryat Rin Vikas Yojana, or Nirvik scheme.
The insurance premium rates will be reduced to 0.6% for those having outstanding limits below Rs 80 crore. The minister said the premium rates for exporters having an outstanding limit of more than Rs 80 crore will be 0.72%.
Goyal said the insurance claims for gold, jewellery and gems are higher than the other sectors, which affect the lenders' lending capability.
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Under Nirvik scheme, the insurance cover has been enhanced to 90% of the principal and interest from 60%. The insurance cover under the scheme will cover both pre-shipment and post-shipment credit. There will be no inspection for losses up to Rs 10 crore, the minister said. The commerce ministry has also included foreign exchange credit under ECGC. State Bank of India will give foreign exchange credit to banks, which, in turn, will lend to exporters at the rate linked to Libor plus 150 basis points.
The ministry will also organise four mega shopping festivals and is looking for venue as huge infrastructure would be required to facilitate it, Goyal said. He said the government has asked the states to apply for this and Uttar Pradesh has expressed interest in organising handicraft festival.
"I do hope to see significant improvement in credit availability for improvements in credit availability for exporters. These measures would help achieve $1 trillion in exports," said Goyal.
Goyal also hinted towards a trade deal between the US and India. He said both the countries are in continuous dialogue for the past several months to arrive at an early trade resolution. Prime Minister Narendra Modi will attend UN General Assembly session and will have other bilateral and multilateral engagements during September 21- 27 in New York.
Zee Media Newsroom