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Mixed reactions greet Exim Policy

EXIM POLICY

Commenting on the Exim Policy 2001 announced by the commerce minister, the CII president Arun Bharat Ram stated that the measures announced have struck a fine balance between managing import liberalisation and measures to boost exports.

The Exim policy coming closely on the heels of an outstanding union budget had many positive measures and these two important policy documents would complement each other in taking India, the Indian economy and the Indian industry forward, he added.

This policy, the CII president added had adequate measures to enable Indian industry to 'manage globalisation' after complete removal of QRs on BoP grounds.

As expected, Bharat Ram stated, the quantitative restrictions for the 715 items have been removed but adequate safeguards were in place by way of institutional mechanisms such as adjustment of tariffs; application of safeguard measures and imposition of anti-dumping duties he said.

Another noteworthy feature Bharat Ram added was the announcement that the government was creating a standing group for tracking, collating and analysing data on 300 sensitive items, which were of importance to the public.

The proposed monthly statement about the import status of such items will help in safeguarding the interests of the domestic industry, he said. The CII president, however, reiterated that the reservation policy for the SSI as also the definition of SSI sector itself had come into sharp focus in the wake of removal of QRs.

The Indian Merchants' Chamber president Sharayu Daftary said: "There was need to watch developments in the international market. It is necessary for us to remain constantly vigilant and to closely watch the trends. In this respect, the decision to setup a standing group for secretaries of all economic departments including Director General of Foreign Trade is a step in the right direction."

In a press statement issued, she said the government's decision to give a thrust to export of agricultural products like apples from Himachal Pradesh and Jammu and Kashmir, Alphonso mangoes from Maharashtra should be considered an important step.

The country's export organisations on Saturday said that the Exim Policy had failed to address their immediate needs.

Efforts should be made to progressively dereserve more items as well as have a re-look at the definition of SSI to enable this sector to face up to competition, he added.

Exporters unhappy

Meanwhile, Federation of Indian Export Organisations president K K Jain observed that the intention of the policy is good but it can be judged only after practical implementation of its provisions at the operational level.

In a statement here, Jain said that unless the transaction cost of 18 to 20 per cent which the exporters are bearing today is reduced to a reasonable level, it would be difficult for exporters to withstand in the highly competitive international market.

He also expressed concern that noting had been done in respect of the exporters plea to extend the validity of the special import license.

Besides, he said, there was no special attraction for the recognised status holders. In addition, he opined, imposition of bank guarantee condition for regularisation of shortfall under EPCG scheme and charging of interest at the rate of 24 per cent on such regularisation, were quite disadvantageous for exporters.

The new Exim Policy is a part of the country's commitment to World Trade Organisation under which most of the imports have been freed from quantitative restrictions by aiming at 18 per cent imports which will adversely affects the SMEs, particularly the small scale sector, agro industry and domestic industry as a whole, according to Vijay G Kalantri, president, All India Association of Industries.

A statement issued here by the AIAI said that the new Exim Policy should have laid stress on growth of exports particularly on those sectors which give support by way of technology, development and funding.

Effective strategies should have been implemented to increase India's share from one per cent of the global market which the policy has emphasised upon, however, it lacks the direction and infrastructure towards achieving the same.

AIAI further states that Exim Policy should curb imports by imposing anti-dumping measures and restricting goods from various avenues since traders expected imports to be to the tune of 18 per cent which in reality will be over 24 per cent.

AIAI fears that since 70 per cent of the population depending on agriculture will be worst hit due to removal of QRs which will adversely affect this large section of the Indian economy and they may not be in a position to bear the onslaught of competition of cheap imports of agro goods in the country.

The budget 2001-2002 was expected to give a boost to agriculture, however, the positive effects of the budget will be negated by the imports which are being freely allowed in this sector, the release added.

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