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Monday, July 13, 1998

Sector-specific policies to boost exports soon 

Sharad Mistry  
Agroproduce, textiles and garments, leather, electronics and software, marine products and plastics are among the 12 high-growth sectors identified by the government to boost exports. For this the government has now adopted sector-specific policies that will eliminate prevailing glitches and boost exports.

As a first step, the government is likely to announce specific policies for the electronics and software sector by July end. The changed input-output norms for advance licence are intended to be determined on post-export basis.

"The recommendations submitted last month by representatives of the software industry, have already been put up for discussion at the highest level," said Anil Swarup, export commissioner, Director General of Foreign Trade (DGFT. The new sector-specific policies will be part of the Exim policy announced earlier. Also, for the first time, the government has set up a one-member cell to monitor the smooth implementation of various export policies announced from time to time. Swarupwill be incharge of the export policy implementation cell. Speaking to The Financial Express, Swaroop said: "The new sub-policies will address the problems faced by specific sectors and eliminate existing glitches."

There have been complaints from the exporting community of harrassment from various quarters because of different interpretations of export policies. This has at times led to adhoc withdrawal of benefits given earlier through the policy and non-implementation of some policies. These and other export-related steps are aimed at fighting the negative export growth of 17 per cent recorded in May 1998 over the previous year. Despite various constraints, the government has set up an ambitious export target of $10 billion by 2000.

Explaining the concept of the proposed sub-sector-specific policies, Swarup said: The existing advance licence scheme is based on pre-determining the input-output norms, majority of the inputs (raw materials) are imported. The scheme is valid for other sectorswhere the input-output norms are pre-determined. However, in case of the electronics sector, where the technology is changing fast and the input norms cannot be pre-determined. In case of textiles, leather exports, for example, there would be problems of pollution, which is again sector specific. These norms may not be applicable to other industry, say software industry.

In case of marine products sector, Swarup said: "We hope to more than double the exports to over $2 billion over the next 18-20 months."

"The government intends to give due considerations to the sector-specific problems and eliminate at the earliest the existing glitches that hamper the exports," Swarup said.

In order to help the various high-growth export sectors, we have asked the respective export promotion councils to forward their strategy papers and specific suggestions to the commerce ministry to tide over the existing problems at the earliest. Each of these sectors are in the process of submitting their respective strategypapers.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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