The scheme, which was earlier slated to end on March 31, 2012, provides two percent interest subsidy to handlooms, handicrafts, carpets and the SME sector, with a view to enhance exports from these sectors.
In addition, the coverage of the interest subvention scheme has been increased to include a number of other labour-intensive sectors like processed agricultural products, ready-made garments, sports goods and toys.
Sharma stated that, as a part of the strategy, the government would focus more on employment-intensive industries and on diversification of export markets.
"It is our expectation that with these measures, we shall be able to sustain an annual export growth of 20 percent this fiscal", Sharma stated.
Exports from India were recorded at USD303 billion in the 2011-12 financial year, indicating a growth of 21 percent as compared to the previous year.
Source: The Times of India