RAS question
Interest Subvention covers what % of India's tariff lines?
Correct answer: (C) 75%.
Interest subvention for pre- and post-shipment export credit applies to a notified positive list at the Harmonised System six-digit level that covers approximately 75 per cent of India's tariff lines.
Explanation
The figure is about 75 per cent because the interest subvention is not a blanket benefit across all tariff lines. PIB states that the support for pre- and post-shipment rupee export credit is limited to exports in a notified positive list of tariff lines at the Harmonised System six-digit level. That list covers approximately 75 per cent of India's tariff lines and is designed around sectors with high MSME participation. The positive-list design matters: it targets eligible export products, rather than treating every tariff line as automatically covered. This is why 75 per cent is the closest and substantively correct option.
Why the other options are wrong
- (A) 25 per cent is too low because the PIB release says the notified HS six-digit positive list covers approximately 75 per cent of India's tariff lines.
- (B) 50 per cent understates the coverage; Press Information Bureau gives the coverage as approximately 75 per cent, not half of tariff lines.
- (D) 100 per cent is wrong because the subvention applies only to exports on a notified positive list, not to every tariff line.
Concept
This tests export-promotion policy within Indian Economy, especially how trade-finance incentives are tied to tariff-line eligibility. RAS often asks such questions because schemes are tested through their exact coverage mechanism, not just their headline name.