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Industry welcomes removal of QRs on exports

EXIM POLICY

Trade and industry on Sunday welcomed the new Exim Policy, saying that the removal of quantitative restrictions on exports was a step in the right direction.

"Without removal of these restrictions, you cannot boost exports. The decision to remove QRs is in the right direction," secretary general of FICCI (Federation of Indian Chambers of Commerce and Industry) Amit Mitra said in New Delhi.

On the transport assistance, he said the movement of produces from farms to processing units was important.

Mitra also welcomed the measures announced in the policy for agriculture exports and Special Economic Zones, which would be a deemed foreign territory.

While welcoming the new policy announced the Confederation of Indian Industry said the fund allocated to states for export promotion could have been more for them to meaningfully address infrasturcture and other constraints.

"Even the allocation for market access initiative programme of Rs 420 million for 2002-03 could have been enhanced to at least Rs 1 billion," CII said , a view with which FICCI also agreed.

No scheme had been announced for remission of indirect taxes and there was no mention of extending deemed export to more categories where customs duty had been reduced to nil in the policy, CII said.

ASSOCHAM (Associated Chambers of Commerce and Industry)welcomed the policy for specially focussing on agri-exports, handicrafts and other traditional and non-traditional products.

However, it said, "there was need for a provision for easy availability of finance, a time-frame for duty drawback and restoration of tax benefits."

Federation of Indian Export Organisations vice president S K Saraf said: "The new exim policy is growth-oriented and progressive export-friendly.''

The Policy would help in bridging India's trade deficit, which went up to $5.5 billion during April-October 2001 due to steep rise in imports and downfall of exports, he said.

The continuation of the Duty Entitlement Pass Book scheme and restoration of status quo ante in value cap has given great relief to the exporters.

Reacting on the Exim Policy the All India Industries Association president Vijay Kalantri said the Policy has various sops to agri export, handicrafts and traditional exports to make it competitive in the international market particularly China and Taiwan.

The government ''has set a clear target of doubling India's export by 2007 which synchronises with the Tenth Five Year Plan's overall approach of doubling average per capita income, FICCI president R S Lodha said.

President of FIEO Ramu Deora termed the Policy as 'hassle free'

The Exim Policy has given a lot of thrust on agriculture exports, he said.

The idea of offering three per cent DEPB on one kilogram Indian made agriculture product at shopping centres/malls in foreign countries will certainly boost Indian agriculture exports, he added.

However, Jairam Ramesh, economist and secretary of the Congress Party, expressed apprehensions over the agri expo-zones, saying, "It is a bogus concept."

"It is not going to automatically lead to increase in agri exports," Ramesh said, adding that what were needed were cold storages, transportation, processing and standards.

But he welcomed the removal of QRs saying that it is a good step.

Citing the food processing industry, he said there was a need to de-reserve small-scale units for large scale processing units.

But he cautioned the steps announced by Commerce Minister Murasoli Maran needed to be followed up.

In a major initiative to boost export-led growth, the new five-year Exim Policy lifts all quantitative restrictions on exports, improves incentives for Special Economic Zones and schemes like DEPB (Duty Entitlement Pass Book), advance licence, and EPCG (Export Promotion Capital Goods).

The basic chemical, pharmaceutical and cosmetics exports promotion council has welcomed the Exim Policy announced in New Delhi on Sunday.

Kishore Chokhani, chairman Chemexcil, said that it is a growth-oriented policy in the right direction. He welcomed the growth facilitating provisions in the Policy, particularly the import of duty-free fuel in the chemical sector and reimbursement of 50 per cent of registration fee in the pharmaceutical sector.

Chokhani also welcomed the simplification of procedure relating to advanced licences, etc.

However, the policy has no mention about the value added tax system, the urgent implementation of which Chemexcil had earlier recommended to its parent ministry, he added.

(With additional inputs from UNI)

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