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IN a momentous move to push India's exports aggressively, the Government today announced several measures aimed at augmenting exports of farm goods, the small-scale sector, textiles, gems and jewellery, electronic hardware, leather, besides bringing down considerably the transaction cost to trade through a plethora of procedural simplification.
Removal of quantitative restrictions (QRs) on exports save a few sensitive items, a major thrust to agricultural exports, permission for setting up overseas banking units (OBUs) in special economic zones (SEZ), retention of duty-neutralisation instruments including Duty Entitlement Pass Book (DEPB) and other export promotion schemes, an incentive package for hardware sector and broadened market access initiative (MAI) scheme constitute the kernel of the new five-year Exim Policy (2002-07) that takes effect from April 1.
The most important move was the reduction in transaction time and cost to exporters with the introduction of a new eight-digit commodity classification for imports which would go a long way in eliminating the classification skirmishes between the two wings of the Commerce and Customs departments and the exporters. In a parallel move, the Ministry of Environment and Forests is in the process of finalising guidelines to regulate the import of hazardous waste.
Under advance licensing, the new policy abolishes duty exemption entitlement certificate (DEEC) book, a practice started since 1975, which had led to a lot of rent-seeking activities between exporters and corrupt officials. Alongside, the policy also withdraws advance licence for annual requirements (AAL) and exporters could avail themselves advance licence for any value.
Yet another significant shift in policy is that licensing regime for rough diamond is being abolished which should help India emerge as "a major international centre for diamonds."
Releasing the policy at a news conference, the Union Commerce and Industry Minister, Mr Murasoli Maran, said the Exim policy was "comprehensive in scope" and multi-sectoral which takes care of more than 80 per cent of the population living in rural areas by focussing on agri-sector, cottage and handicrafts and small-scale sectors.
He said the effort was to forge "a lasting partnership" among the Centre, the State Governments, exporters and people at large so much so that "we have further simplified the process of exporting to such an extent that even the small artisans feel motivated to export."
On SEZ, Mr Maran's brainchild which he introduced in 2000, the policy proposes permission for SEZs to set up overseas banking units (OBUs), which would be virtually foreign branches of Indian banks but located in India. They would be free from usual pre-emption like CRR and SLR and would give SEZ units and SEZ developers access to international finances at global rates.
The policy accords a major thrust to farm exports by removing export restrictions like registration requirement, minimum export price or the rider of export through the State trading agencies on whole and infant milk food, butter, wheat and wheat products, coarse grains, groundnut oil, and cashew exports to Russia under Rupee Debt Repayment scheme.
Transport assistance would be provided for export of fresh and processed fruits, vegetables, floriculture, poultry, dairy products and products of wheat and rice so to encourage diversified farm activities.
It is also proposed to work out suitable transport assistance for export of accumulated stocks of rice and wheat from FCI to facilitate their liquidation.
In keeping with the export of focus of the policy for diversified markets, Mr Maran announced the launch of a new programme `Focus: Africa' to impart a boost to India's trade with the sub-Saharan African region.
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