'Adequate measures to manage globalisation'

By Our Special Correspondent

NEW DELHI, MARCH 31. The Indian industry today welcomed the safeguards incorporated in the new Exim Policy to meet any sudden surge in imports due to the lifting of quantitative restrictions on a large number of items.

The proposal to create a standing group for tracking, collating and analysing data and the mention of an early warning system by the Union Commerce Minister, Mr. Murasoli Maran, were seen as appropriate confidence building measures for the industry that was apprehensive of the situation in the post-QR phase. The industry was also buoyed by these measures because it had made these suggestions in its interaction with government officials while the Exim Policy was being formulated.

``This policy has adequate measures to enable the Indian industry to `manage globalisation' after complete removal of QRs on BoP grounds,'' noted the Confederation of Indian Industry chief, Mr. Arun Bharat Ram. The Federation of Indian Chambers of Commerce and Industry (FICCI) also reacted along similar lines by pointing out that the Exim Policy proposals aimed at protecting the Indian industry was what the industry had asked for in the recent Board of Trade meeting.

The only jarring note came from the Federation of Indian Export Organisations (FIEO) whose members have a direct stake in the contents of the Exim Policy. While the intention of the policy is good it can be judged only after practical implementation of its provisions at the ground level, pointed out the FIEO President, Mr. K. K. Jain. The FICCI too introduced a caveat of a similar nature by hoping that a broad policy consensus on various export promotion initiatives that have to be jointly decided with the Finance Ministry, will emerge shortly and the new schemes are implemented without much delay.

The FIEO also pointed out that the transaction costs continued to remain high and there was no special attraction for recognised status holders. Along with the FICCI, it appreciated the extension given in export obligation period for two years and the waiver of the need for technical characteristics for inputs in the advance licensing scheme.

The policy's emphasis on increasing agriculture exports, accessing new markets and seeking the involvement of States in raising exports also came in for a special mention by industry associations. The Associated Chambers of Commerce and Industry of India (Assocham) felt these components indicated the Government's intentions of unveiling a policy that was progressive as well as export led. It hoped that the initiatives requiring discussions with Mr. Maran's Cabinet colleagues would be pushed through expeditiously.

The PHDCCI (Punjab, Haryana and Delhi Chamber of Commerce and Industry) President, Mr. Sushil Ansal, described the policy as realistic, balanced and along the expected lines. But the antidumping law and procedures needed to be streamlined and deemed exports should be exempted from payment of excuse duty on a par with physical exports.

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