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Radical steps to spur exports likely in Exim Policy

Mohan Padmanabhan

CALCUTTA, Jan. 18

THE new Exim Policy statement, to be announced by the Minister for Commerce and Industry, Mr. Murasoli Maran, on March 31, is expected to usher in some radical measures to rev up Indian exports (especially the export manufacturing segment) in the new mil lennium. With a total phase-out of quantitative restrictions (QRs) in imports by March 31, 2001 (as envisaged by the recent agreement with the US) on the cards, more items may be taken out of the negative list and put on OGL.

Mr. N.L. Lakhanpal, Director-General of Foreign Trade (DGFT), told Business Line here recently that Indian exports have to emerge from the shadow of this ``single digit growth'', and move ahead to meet global competition. This called for concerted effort s by both the export sector and the Government. A quantum jump in export growth is the only way India could build up clout in the global trading environment. Since export is now a necessity, the weaknesses and strengths of export promotion schemes will b e looked at afresh, he said.

Highlighting the need for innovative schemes, particularly to give a boost to FTZs, in the emerging backdrop of the SAARC inter-regional arrangements, Mr. Lakhanpal called for greater Government-exporter interaction. He, however, said that the subsidy re gime has to go eventually, as this may prove counter-productive in the post-WTO scenario, and actually hurt the nation's interests in the long run.

On the strategies that must be adopted if Indian export is to achieve the quantum jump in growth, he said it was necessary to think at least 15 years ahead. ``Not only do we have to look more closely at existing markets, our efforts have to centre around the creation of a new product as well as a market for it,'' he said. Mr. Lakhanpal also mooted the concept of consortium marketing by SSI exporters as one way of expanding the market.

On the changing role of the DGFT offices, he observed that their functioning, as perceived in today's context, may eventually become redundant, and ``we should be prepared for this''. The DGFT, in the not-too-distant future, can function only as a trade facilitator, he said.

Envisaging a much greater role for export promotion councils, he said that a three-member committee, including the DGFT, has been formed to look at total restructuring of EPCs. According to him, total EDI connectivity between DGFT offices, customs and po rts was expected to be achieved by June 30.