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Govt sees exports picking up in October 2002

BS Economy Bureau

Export performance should pick up by the second half of this fiscal. "Driven by a turnaround in the US economy, the level of exports should start going up by October this year," said Rajiv Pratap Rudy, minister of state for commerce.

Also, the Exim Policy for 2002-07 has introduced a paradigm shift in India's focus. "For the first time, the policy focuses on agricultural produce and sourcing directly from farmers. This is something that has not been tried before," he said, adding it would take some time for the various schemes to become operational and the results to start showing.

On the possible imposition of non-trade barriers on agricultural exports from the country, Rudy said the measures were becoming increasingly important in view of the fact that developed countries would progressively have to do away with high agricultural subsidies.

India would also look at barriers for agricultural imports and the government would work out standards for imports of such goods, he added.

"The objective behind setting up special economic zones is not to discriminate against export-oriented units, but to help them. While fears have been expressed that the special privileges granted to SEZs discriminate against EOU's, this is not the case," he pointed out.

The rationale behind setting up SEZs was to ensure availability of world class infrastructure to exporters within a short period of time.

"While the government is working on improving the standard of infrastructure like roads, ports and power, it will take a long time before the advantages can percolate to EOUs. SEZs are a quicker way to provide exporters with world class infrastructure, at least in pockets," Rudy said.

Also, EOUs have existing schemes for which the government has simplified procedures in the Exim policy, he added.

On the special focus on the cottage and handicraft industry, he said the government would initially pick a few towns like Khurja, for pottery, and Moradabad, for brassware.

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