Date:14/01/2006 URL: http://www.thehindu.com/2006/01/14/stories/2006011408361700.htm

Business

Target Plus scheme will be revamped: Kamal Nath

Special Correspondent

DEPB will continue till the announcement of a new scheme

— Photo: PTI

JOBS FROM LUXURY: Union Commerce and Industry Minister Kamal Nath addressing the two-day Hindustan Times Luxury Summit in Mumbai on Friday. — Photo: PTI

MUMBAI: Union Minister of Commerce and Industry Kamal Nath on Friday said he was bullish on achieving the export target of $93 billion during 2005-06 and urged the Board of Trade to strategise for exceeding this target.

India's export growth had regained its momentum in December 2005, said Mr. Kamal Nath in his keynote address at the meeting of the board — the first to be held outside Delhi.

He indicated that the growth of exports in the first nine months of the current fiscal (April -December) was over 18 per cent, "which is commendable considering that this was achieved on the already all-time high base of 26 per cent growth last year.'' India's merchandise exports during April-December 2005-06 stood at little over $66 billion, while imports during this period, excluding oil imports, amounted to $65 billion.

Agreeing with the exporters on the need for a stable policy regime and the adverse impact of the extension of the Duty Entitlement Pass Book (DEPB) scheme in fits and starts, Mr. Kamal Nath assured exporters that such uncertainties would be removed and announced that the DEPB would continue till a new scheme was finalised. He also announced that the Target Plus scheme would be revamped to make it more focussed. The scheme offers incentives based on incremental exports and is being implemented at a cost of about Rs. 8,000 crore. Welcoming the reports of the Working Group and the study groups set up by the board, which is headed by Kumar Mangalam Birla, Mr. Kamal Nath urged the board to narrow the recommendations of the groups to three or four issues, having the maximum impact on exports.

The Minister said he had taken up with the Union Finance Minister the issue of fringe benefit tax (FBT) and service tax incidence, which were having an adverse impact on export competitiveness.

Luxury market

Earlier, addressing the Hindustan Times Luxury Conference, Mr. Kamal Nath said the luxury market in India had the potential to grow at 50 per cent, providing more jobs and employment.

"It is a market waiting for a bigger boom. This is also a market thirsty for innovation and new ideas rooted in Indian design.

"We need entrepreneurs who are willing to put money into such creations to make global brands out of Indian potential," he said.