It is heartening to note that the Prime Minister has off-late taken serious note of declining exports. Despite the existing problems of infrastructure, archaic rules of excise and customs, procedural hurdles, both in customs and trade policies, we were able to achieve 20 per cent plus growth in our exports till recently. We therefore need to ponder over the fact that despite best efforts of the exporters, exports are declining. After liberalisation in 1991 India has been reducing its tariffs, simplifying its trade policies to ensure free import. Unfortunately, we failed in similar efforts in our exports.

The other day an important manufacturer was pointing out that exporters need more permissions than importers. He had purchased components from 12 different states for his project abroad and in each state he requires clearance from excise department.

It is noticed that developed countries are creating more problems for us whether it is use of PC in leather, ISO dyes in garments, child labour, environment prolems etc. We have not projected ourselves properly on the issue of child labour. In developed countries, young children are made to cut hedges, use lawn movers, sell newspapers, work in departmental stores etc. They refuse to accept the problems of child labour in developing countries and every time demand a certificate from Indian exporters to the effect that export products have not been manufactured by child labour. Our adult artisans cannot afford the hiring of outside labour. The whole family works together to make a living. This is more prevalent in carpet, handicraft and other cottage industries. It is not the intention to support child labour but prevalent circumstances are such that it becomes difficult to ignore them completely.

Many countries are using non-trading issues to ensure that Indian exports are not accepted. Indiscriminate anti-dumping duties are being levied, whether it is export of grey fabrics, towels or chemicals. It is surprising that export of cycle tyres to Brazil is now subject to anti-dumping duties. In the United States, European Union and other developed countries they still want to protect their garment industry. They are even treating our polyester bags as quota item. In Germany, exporters are forced to take back the packaging after the material is unloaded. In Holland, they are discriminating against India in export of floriculture by levying customs duty while other developing countries are exempt. The regional groupings have worsened the situation further. Trading among themselves is duty free whereas trading from third countries is subject to payment of customs duty. It is not possible to compete internationally under the circumstances.

In India an exporter is not treated with respect by the Government departments. Samples are drawn by customs from the export consignments indiscriminately but unfortunately the results of the samples come after six months. We are very touchy on import of silk required for exported products. There are a number of hurdles, checks, restrictions on imports whereas a large chunk of silk is being smuggled in from China. In Varanasi, smuggled silk is freely available in the market. Some of the existing infrastructure needs to be strengthened. For instance, we do not have a single jumbo X-ray machine in the country to X-ray the whole container. Some of the ports need to be augmented. We need modern equipment to handle the cargo. The turn round time for a ship is over 8 days whereas it is 6 to 8 hours in other countries.

We have done everything to ensure that our exporters sell their goods at a loss, particularly when there is tough competition from China and other countries. In China, exporters get permission to import restricted items on which they make extra money and sell their goods at a loss. In India, exporters are made to pay sales tax, octroi and other local taxes on the sale of their licences, quotas and credits. We need to have India Trade Centres strategically located in other parts of world so that all facilities are available to exporters. These Centres should be manned by officers of Indian Trade Service so that a proper feed back on market conditions, products needs etc. is available to exporters.We should not liberalise in a slipshod manner. If they are keen on exports to India, we are equally keen on export to their countries. It cannot be a one-way traffic. Government of India should take up with WTO that any concession in tariff extended to regional groups will be equally available to all members of the WTO. Our problems on exports have to be tackled in an organised manner and in an atmosphere of give and take instead of succumbing to the pressure of developed countries and agreeing to what they want to achieve i.e. freer imports to this country.

The author is former DG, FIEO. He will answer queries relating to foreign trade.