Commerce Minister Ramakrishna Hegde, like his predecessors in the last couple of governments, has decided that the country's commitments to the World Trade Organisation (WTO) on removing what are known as `quantitative restrictions', come first. The United Front (UF) government had transferred around 450 items to the open general list earlier.

His modified EXIM policy, announced here today, has shifted nearly 340 items from the restricted lists of imports to the open general licence some others are to be shifted from the restricted to the special import license list. The list of items in the open general license (OGL)list, in fact, includes several marine and agricultural items like shrimps, onions, canned vegetables, and fruits such as peaches and strawberries. Apple and other juices can also be imported freely, though mineral waters still need some sort of licence.

Even water including natural water has been put on the list of items freely importable. Mineral and aerated waters can be imported against special import licenses. Nothing can be more anti-swadeshi than allowing the import of drinking water, remarked a high-level bureaucrat.

The import of handcarts and rickshaws has also been freed. One wonders whether this would hit the small scale manufacturer of these goods or better manufactured rickshaws will help to improve the lot of the poor users of these items who has been hitherto ignored by Indian industry.Bindis, sindur and kumkum can now be freely imported, though it isn't quite clear as to where these are to be sourced from.

The freeing of import of diabetic beverages in the Exim policy will pave the wayfor import of diet colas by soft drink majors. "Diet Coke and Diet Pepsi may finally be available to Indian consumers" felt an MNC official.Both soft drink companies and eating joints catering to the upper-middle class may now import diet colas which fall under the category of diabetic drinks. It is expected that up-market hotel chains may also import these drinks as there is a substantial demand for them already.

Diet colas are not currently being manufactured in India. By making imports, the soft drink companies will be able to test the market for the ultimate manufacture of diet colas in India.

Among the products permitted free entry are washing, cleaning and degreasing preparations, toilet soaps, medicated soaps and shaving creams. In addition, a number of personal care products such as preparation for permanent waving or straightening, depilatories, twin type shaving system, razors, safety razors blades and disposable cartridge blades are now in OGL.

Now, after paying the requisite import duties,importers will be allowed to import these goods and sell them in the domestic market. While final duties on these will be known only in the budget, it is unlikely that duty rates on major items will be above 30-40 per cent. In other words, domestic manufacturers of these items are now going to come under further threat of competition.