While the target is proposed to be finalised next week, the indications are that the growth rate may be at least 15 per cent (in dollar terms) over last year, given the good growth in world trade and revival of South East Asian economies.

During 1999-2000 exports notched up a growth rate of 11.58 per cent, exceeding the target of 11.30 per cent. In value terms, exports amounted to $37.53 billion compared to $33.64 billion in 1998-99.

Unveiling the Exim policy for 2000-01 on March 31, commerce and industry minister Murasoli Maran indicated that his ministry was "aiming" at a 20 per cent export growth in 2000-01 over 1999-2000.

Recently while speaking at the national export awards function in New Delhi, Maran had said that though the export target for 1999-2000 had been exceeded, "we must strive to achieve a sustained growth of 20 per cent a year in the coming years".

The final export data for 1998-99 now stands revised at $33.20 billion, down by $400 million from the provisional estimate of $33.64 billion. The growth rate will work out to be lower than the 3.7 per cent provisionally estimated.However, the export growth rate in 1999-2000 will work out to 13.06 per cent if the final data for 1998-99 is taken.

The commerce ministry believes that the export basket has to be considerably diversified and for this purpose, a paradigm shift in policies and procedures is called for to achieve as sustained growth of 20-25 per cent annually.

The ministry notes that the international trade is growing in sectors such as office machinery, auto parts, transport equipment and the entire electronic sector. In all these items, India's share of world trade is a mere 0.1 per cent or less.

There is also a great scope for export of iron and steel, manufactures of metals, leather and manufactures, pharmaceuticals, dyeing, tanning and colouring materials, toys and in plastic sector, in all of which India can definitely do well. Even half-a-per cent of global export in these sectors - which cannot be considered an ambitious target - should help the nation generate additional exports of a few billion dollars, the ministry feels.

Notwitstanding the double digit growth recorded in 1999-2000, the ministry does not think that India's world share will improve beyond 0.65 per cent.

Maran for massive market access plan
New Delhi, May 15:
Commerce and industry minister Murasoli Maran has called for a massive market access programme to enhance export capabilities and competitiveness.Market access issues have emerged as "strategic issues" in the world economy today much more than at any time in the past, he said while exchanging views and sharing information with the export award winners at a function here on Monday.

Citing the example of the US to underline the importance of market access issues, he said that one of the lesser known trade assistance programme practised by America was its market access programme under which the US tax payers spent about $100 million annually underwriting the costs of advertising American products abroad.

For example, in 1991, $4,65,000 was spent on advertising McDonald's Chicken McNuggets, $2.9 million on promoting Pillsbury muffins and pies and $10 million on touting Sunkissed oranges.

Taxpayers had paid ads for Gallo Wine, Miller beer, Cambell's soup and Mars and Candy bars. At one point, the United States resin growers received $4 million to advertise in Japan, an amount that exceeded the commerce department's entire Japan Budget. Exports of wine from California had increased in the last 10 years to $ 300 million a year from a mere $ 25 milion, thanks to aggressive marketing. Maran also referred to a study by the Congressional Budget Office in 1995 which brought out that the US spent $28 billion a year in promoting commerce and business.

In his Senate confirmation hearings in January 1997, the then commerce secretary designate William Daley conceded that $250 million of the commerce department's export promotion in the previous four years resulted in over $ 40 billion in overseas sales.

"We need to make Indian products fill up the shelves in the stores around the world in large numbers, greater volumes and as more conspicuously recognisable Indian brands", the minister said.

-- S. Venkitachalam