Search the Internet          Tips  Sites: Finance, Investment

3% export target unlikely this year: Maran

EXIM POLICY

Commerce Minister Murasoli Maran said on Sunday that even a 3 per cent export growth was unlikely to be met this year. He was, however, confident that the new Exim Policy would double exports to $80 billion by 2007.

"Even the 3 per cent export target for this year is unlikely to be achieved. If the exports are not negative we will be happy," Maran told reporters after unveiling the five-year Exim Policy.

"The 18 per cent growth recorded in January has now been revised to 15 per cent. February could be bad," the minister said.

Declining to hazard a guess on next year's export target, Maran said that this exercise is done in the month of May after consulting various commodity boards and export promotion councils.

He said the International Monetary Fund had reportedly lowered the growth for 2002 for OECD (Organisation for Economic Co-operation and Development) countries from 1.1 per cent to 0.8 per cent and the Indian exports target would have to be finalised taking into account all these factors.

Noting that lack of competitiveness was the major factor affecting exports, Maran said, "We are already falling back because of lack of competitiveness. Even in the competitive index released recently India figured at the bottom. Unless we improve we will lose to China."

Defending the government's decision to continue extending export incentives like the duty drawback and the DEPB (Duty Entitlement Pass Book), he said, "We are merely following a global practice. World over, including in the US and Europe, the governments refunds the duties paid by exporters on inputs. It is WTO (World Trade Organisation) consistent".

Commerce ministry officials clarified that many of the exemptions were not incentives in the real sense as they were being adjusted against the import duties paid by the exporters.

On the removal of quantitative restrictions on the remaining 600 items, Maran said that the 715 items on which quantitative restrictions were lifted was on the basis of BoP (Balance of Payments) and the government is committed to removing QRs on all items barring those which are of concern to national security.

Asked if items such as pre-recorded cassettes would be removed from the QRs list, "probably we will remove it".

ALSO READ:
The Exim Policy 2002-2003
The Rediff Budget Special
Money

Tell us what you think of this report