New Delhi, July 19: The government has decided to set up an inter-ministerial group to assess the likely impact of the removal of the remaining quantitative restrictions (QRs) on 715 tariff lines by March 31, 2001 and to suggest appropriate measures to safeguard the domestic industry.This was announced by commerce and industry minister Murasoli Maran while addressing the consultative committee meeting for his ministry on Wednesday.The group would include reprsentatives of the ministries of agriculture, small-scale industries and others, he said.The government, Maran said, was taking adequate steps to ensure that the domestic industry, including the SSIs, was not adversely affected in any manner in the wake of the removal of QRs in the first phase beginning from April 1, 2000.
In this context, he referred to the setting up of a committee by the Prime Minister headed by the Union home minister with the commere and industry minister and others as members to consider "empowering SSIs in a big way as they contribute nearly 40 per cent to the exports".
He said that imports were being closely monitored and the customs duty on a number of agro items had ben increased recently to safeguard the interests of the agriculture sector. The tariff had been raised on rice in husk from zero to 80 per cent, semi-milled or wholly-milled rice from zero to 80 per cent, broken rice from zero to 80 per cent, maize (corn) seed, grain sorghum, mille etc. from zero to 50 per cent, apples from 35 to 50 per cent, fresh grapes from 25 to 50 per cent and on milk powder from zero to 60 per cent.
Maran also released a booklet on QRs explaining the bakground and the factual position relating to the QR phase-out which has been brought out by the commerce and industry ministry.
He announced that all export promotion councils and commodity boards would prepare a five-year medium term plan (2000-05) to achieve medium term export targets. He exuded confidence that the export target of 18 per cent growth during the current financial year would be achieved, but felt that given the potential and the need for accelerating exports, the aim should be to attain even higher levels of growth.
The minister also said that the government would soon introduce a new bill to replace the Industries (Development & Regulation) Act, 1951 to bring it in line with the liberalised economy where industrial licensing had virtually being abolished and to give a thrust to industrial growth.
He said that approval had been granted for setting up special economic zones (SEZs) in Tamil Nadu, Gujarat, Maharashtra, West Bengal, Orissa and Andhra Pradesh and that the scheme would take off soon with the notification of the required guidelines.
"There is every possibility of creating world class facilities in the zones so that investments are attracted both from home and abroad for unleashing massive economic activity and employment and for achieving a quantum jump in exports", he stated.
Responding to a point raised by Swadesh Chakraborty regarding the adverse effect of the campaign by PETA (People for Ethical Treatment of Animals) on India's leather exports, the minister said that the government had taken suitable steps to counter such campaigns by ensuring proper enforcement of the existing laws pertaining to prevention of cruelty to animals.
He also assured Chakraborty that action was being taken by the director-general of foreign trade on the domestic umbrella manufacturers being advesely affected by imports.
The government was looking into the possibility of increasing the amount of subsidy to the small tea growers.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.