The revised Exim Policy 1997-2002 for the current fiscal takes India further towards its chosen path of liberalisation and globalisation. The remaining 715 items under the quantitative restrictions have gone w.e.f. April 1, 2001. This decision is naturally causing anxiety to the domestic industry despite protective measures that have already been initiated by government.For exporters, it means neutralisation of the Special Import Licence (SIL) because the 204 items that were in it are now in the free list. As it is, the premium on SIL has fallen drastically, and with the latest development, it is as good as a piece of paper. We in the federation had been pleading to government to extend the validity of the Special Import Licence, besides asking for strengthening of the recognised status holders.
The Exim Policy 2001-02 is silent about these demands. But, at the same time, I must express our gratification at the many ground level steps that the commerce minister has taken to further streamline procedures and also rationalise certain anomalies and drawbacks. He has streamlined the annual advance licence scheme, hiked up the entitlement under the scheme in terms of f.o.b value, extended the facility even to cases where there are no standard input-output norms, and also covered deemed exports and intermediate suppliers, besides revalidating expired advance licences where export obligations have been completed by six months. The current year's policy has therefore made the export environment more exporter-friendly and conducive to export activity.
Two of the many positive points, I would like to specially mention here are the emphasis placed on agricultural exports, and encouragement of state governments to participate actively in their exports. The Federation has been urging the Centre to involve the state governments in every aspect of exports so that they take a direct interest in promoting export activity in their territories. Murasoli Maran has been instrumental in getting the finance minister to allocate Rs 100 crore in the current Budget for giving grants to state governments to improve their export support activities.
I would also like to commend here the provision to set up agricultural export zones and also the Market Access Initiative Scheme, besides steps indicated to enhance the attractiveness of the Special Economic Zone. This is an innovative approach, and promises to bring positive results in terms of high export growth in the near future. I commend the policy for being very pragmatic and growth-oriented.
-- (The writer is president, Federation of Indian Export Organisations)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
