The industry ministry is working on a three-pronged strategy to revive industrial growth rate and bring it back into double digits in the short and medium term, according to industry secretary T R Prasad.

Expressing concern over slowdown in industrial and export growth during 1996-97, he said ``we are optimistic that industrial growth would be at least 11 per cent in 1997-98 and the exports would also be on the upswing.''

Terming the slowdown as a passing phase, emanating from the sectoral deficiencies and external developments, Prasad said in an interview that though it is too early to make any firm prediction, there are unmistakable signals of buoyancy in stock markets which could be taken as a lead indicator of a growth upswing.

The industry ministry is also taking up with the finance ministry regarding the anomalies arising out of inverted duty structure wherein finished goods attract lesser duties than the components, he said.

Stating that large scale revision of duties and policies might not be possible before the next union budget, Prasad said this exercise would provide key inputs for sustained dialogues with the finance ministry at various levels. Citing the example of the paper industry, he said the ministry had also taken up certain issues clearly perceived as loopholes like the stipulation of duty exemption for newsprint with less than eight per cent ash content. As a first step, the ministry would have such loopholes plugged at the earliest, he said and added that there was no known mechanism to measure ash content and the concession was being misused and hence should be withdrawn.

While rationalisation of duties and correction of aberrations in the inverted duty structure would be the second step, the ministry has also asked various industry segments to present their vision papers outlining prospects and concerns so that government could help create a conducive growth atmosphere.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.