Export growth rate in first nine months of 2008-09 touched 17.1 per cent whereas the country's industrial production fell by 2 per cent in December, said Union foreign minister Pranab Mukherjee, who is holding additional charge of the finance portfolio, while presenting the Interim Budget for 2009-10 on Monday in parliament.
To counter the negative impact on exports due to the global economic crisis, the Interim Budget proposes to extend the interest subvention of two per cent on pre and post shipment for certain employment sectors.
It is proposed to recapitalise the public sector banks over next two years to enable them to maintain Capital to Risk Weighted Assets Ratio of 12 per cent and to ensure that credit growth continues to sustain economic growth.