Maran for steps to accelerate exports

By Our Special Correspondent

NEW DELHI, JULY 12. The Commerce and Industry Minister, Mr. Murasoli Maran, today called upon exporters to raise exports despite the gloomy global scenario with a view to achieving the goal of a one per cent share in world trade. He urged them to avoid complacency and critically analyse performance trends and identify early signals both sector-wise and market-wise to remain competitive.

Referring to the deceleration in the growth rate during April and May after 19 per cent export growth in 2000-01, he noted that chemicals and engineering goods were doing well while electronics exports had also shown robust growth. But there had been a declining trend in garments, gems and jewellery in the last six months attributed mainly to reduced demand which was perhaps indicative of reduced consumer spending in some of the major world markets.

Speaking at an interactive meeting with leading exporters and chairpersons of select export promotion councils, Mr. Maran assured that the issues raised by them would be taken up with the Finance Minister and the Governor of the Reserve Bank of India (RBI). The aim of the meeting was to find out perceptions of the exporting community about export trends in the context of the reported slowdown in economies of some developed countries and finalise strategies to accelerate exports.

Mr. Maran said a high export growth of 19.83 per cent in dollar terms was achieved and the decelerated growth rate during April and May 2001 was therefore in comparison with an exceptionally high base of growth in the corresponding period of the previous year.

In the area of gems and jewellery, he promised to take up the issue of direct import of rough diamonds with the Russian authorities to facilitate exports. He also assured that the Government would do its best to provide support for market promotion under the new scheme of market access initiative.

During the course of the deliberations, the exporters informed the Minister that the interest rate announced by the RBI for export credit did not reflect the bank rate reductions already effected by the RBI. The exporters are thus confronted with relatively high interest rates. The devaluation of currencies of some competing countries was also affecting the competitiveness of Indian exports.

The exporters also drew Mr. Maran's attention to several notifications recently emanating from the Central Board of Excise and Customs (CBEC) which reflected an inadequate appreciation of the export-import procedures and imposed additional burdens on the exporters. They said in a buoyant market situation, it would have been possible to live with the adverse effects of these changes, but the present impact on competitiveness of Indian goods was accentuated in the context of depressed international demand.

Sharing the exporters' concern, Mr. Maran stressed the need for constant interaction and feedback which would help the Government respond to emerging situations with suitable interventions in order to resolve problems in the way of higher exports.

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