Barring the new items brought under Export Promotion Capital Goods (EPCG) scheme, like textiles in the amended Exim policy announced by Ramakrishna Hegde on March 31, the government has notified several provisions to step up exports. Almost all items have been notified except lowering threshold limit for availing zero duty under the EPCG scheme for textile machinery imports and extension of export obligation period, commerce secretary P P Prabhu said.

Notification of the provision under EPCG scheme would require amendment to certain sub-clauses in the finance bill, he said. Any amendment to the Finance Bill for the purpose would require a presidential ordinance or wait till the constitution of the next Lok Sabha after the elections.

Already, the finance ministry has notified itemsincluding the new advance licensing scheme, permission to import certain pharmaceutical products under advance license scheme subject to actual user condition and extension of duty entitlement passbook scheme and deemed export entitlement certificate to some new ports.

In the amendments to the Exim policy, the commerce ministry had suggested lowering threshold limit for textile sector, chemicals and plastics to Rs one crore from Rs 20 crore. But this has run into rough weather due to the broad categorisation of equipment that would be allowed to be imported under the scheme, sources said.

The notification regarding changes for conversion of export promotion zones (EPZs) to free trade zones was also pending. It is also learnt that the finance ministry had sought the opinion of the law ministry on the procedural aspect of implementing the export commitment under the EPCG scheme. After a dismal performance during the first half of the 1998-99 fiscal, India's exports recorded a double digit growth for thefirst time in March with 10.07 per cent rise enabling cumulative exports growth of 3.7 per cent.

Though trade deficit continued to widen crossing $ 8 billion-mark, exports growth was, however, better than last year when it increased by only two per cent. The latest trade data released today showed total exports during 1998-99 to be $ 33.6 billion against $ 32.4 billion during 1997-98. In rupee terms, exports growth continued to be higher at 17.4 per cent. In March last, exports totalled $ 3.4 billion against $ 3.1 billion in March 1998, while in rupee terms the rise was phenomenal at 18 per cent totalling Rs 14,414 crore.

Imports, in comparison, registered a meager growth in March at 1.64 per cent as compared to March 1998. Cumulative imports growth in 1998-99 increased by 7.93 per cent compared to 1997-98 with non-oil imports accounting primarily for the rise.

During March 1999, imports were valued at $ 3.58 billion against $ 3.52 billion during the same period last year. Cumulative imports increasedto $ 42 billion against $ 39 billion during 1997-98.

Benefitting from lower global prices, oil imports decreased by 22.93 per cent to $ 5.9 billion against $ 7.7 billion last year. Non-oil imports during the period increased to $ 36 billion against $ 31.2 billion in the previous financial year.

Trade deficit for 1998-99 touched $ 8.25 billion against $ 6.4 billion last year. India's exports have witnessed a turnaround since November, when it first posted a positive growth for the 1998-99 fiscal.

Before the double digit growth in March, the highest growth recorded for the fiscal was 8.85 in January, when cumulative exports also turned positive.