NEW DELHI (TIP): Exporters from labour-intensive, small and medium sectors can now avail bank loans at three per cent lower rates with the government on Wednesday approving the long-awaited interest subsidy scheme to boost exports. The scheme will help the identified export sectors to be internationally competitive and achieve higher level of export performance, Power Minister Piyush Goyal said after a Cabinet meeting chaired by Prime Minister Narendra Modi which approved the scheme.

He said the scheme will cover the labour-intensive and employment generating sectors like processed agriculture, handicrafts, handmade and handloom products, fabrics, leather goods and toys among others manufactured by small sectors.

The scheme will be available for all exports of MSME but will not be available to merchant exporters, an official statement after the Cabinet meeting said.

The scheme will be in effect for five years from April 1, 2015. At the end of three years, the government will review the impact of the scheme on export promotion.