Union Finance Minister Pranab Mukherjee on Friday proposed to extend the concessional export finance regime for select exporters for one more year till March 31, 2011.

Mukherjee’s announcement is considered as a relief to the sectors, which were hit by the global financial slowdown.

Presenting the budget for the year 2010-2011, Mukherjee said: "I propose to extend the interest subvention of 2 per cent for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises (SMEs).”

Earlier, the scheme was to expire on March 31 this year.

With a view to insulate the employment-oriented sectors like handlooms, handicrafts, carpets and leather, from the impact of demand slowdown the government had extended the scheme for concessional export finance in the last Budget till March 31, this year.

In his Budget speech Mukherjee said the Indian economy had weathered the crisis well but the main challenge was to make growth inclusive. The focus is to get a double-digit GDP growth rate, he said. Social sector reforms will also be on the agenda.

He also expressed confidence that Economic growth in 2009-10 may turn out to be higher than 7.2 percent.

We hope to breach the 10 percent mark in not too distant a future, Mukherjee added.

Mukherjee allotted Rs 400 crore for green revolution in Bihar, Jharkhand, West Bengal and Orissa, and Rs 300 crore for creating 6000 pulse and oilseed villages.

In his Budget speech, Mukherjee said allocation for roads has been raised by 13 percent and allocation for power sector doubled. 46 percent of total plan dedicated to infrastructure, he added.

Mukherjee said listing of the public sector undertaking  (PSU) would improve corporate governance. (ANI)