New Delhi, July 8: If India's exports are to take a quantum jump in the course of the next decade, new product lines need to be explored and major stride made in controlling the quality of old products, the parliamentary standing committee on commerce has said.In its latest report tabled in both Houses of Parliament, the committee recommended that the government expand vastly the qualities currently available with the national test house and similar other agencies. Additional testing facilities will go a long way in improving the quality of exportable products, it added.
For the same reason, the committee asked for augmented budgetary provisions to meet the needs of the commerce ministry.
Imploring the government to take all possible steps to boost exports, the committee said a study of the functioning of the national test house, pilot test house and the Bureau of Indian Standards be undertaken to explore the areas of activities that are overlapping.
It recommended that the feasibility of placingthe units under the administrative control of a single ministry may be explored and, if necessary, a suitable legislation may be brought about.
It noted that of the three agencies, the national test house had superior infrastructure and expansion of testing of new products and quality control of established products could be organised under its umbrella.
The standing committee felt that the national testing house had highly qualified professionals whose services could be utilised for providing consultancy services to public sector undertakings and private firms and individuals. Since the consultancy service started only a year ago, the national testing house perhaps needed some time to establish itself in the market, it noted.
The parliamentary committee also recommended that sufficient funds should be provided for the early establishment of a national institute of supply and quality management.
Commenting on the role of the directorate general of supply and disposal (DGS and D), the committee saidthe DGS and D had been giving inhouse training in respect of various aspects of its functioning to representatives of ministries and state departments. Since most such activities were also now being performed by individual departments, the committee is of the view that the possibility of formulating common guidelines in regard to these activities may be explored in consultation with ministry of finance, the ministry of industry and others.
As the erstwhile responsibilities of the DGS and D are being decentralised, the ministries, state departments, public sector undertakings and others may need specialised training in the field of fixation of rate contracts, procurement, quality maintenance, inspection and disposal.
Among other issues, the panel wanted the commerce ministry to sort out issues like giving developing countries the right to continue, indefinitely, on balance of payment grounds, with restrictions on agricultural imports. Many developed countries have urged that India should voluntarilyrenege this prerogative on the supposed ground that our balance of payment position has improved in the recent years, adds UNI.
In view of our `weak' bargaining position in the wake of the imposition of sanctions, these "pressures may now intensify."
During the discussions in the committee, several members expressed themselves strongly against the practice of import, at low or zero tariffs, of commodities that are available `in adequate quantities' in the country. The commission therefore felt that it is important that India should try to reconstruct its former alliance with other NAM nations and collectively argue the case of the developing countries before the WTO forum favouring continuation of tariff and other important restrictions.
In the context of international economic circumstances having changed drastically in recent months, the committee observed that it is no longer an orderly international economic framework towards which the countries of the world are moving.
In such a situation, Indiawill be amply justified, to lay stress, as much as possible, on its own national interests in international negotiations on trade-related issues even if that means a temporary deviation from WTO norms, the committee felt.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.