Total chemicals-related exports during 1997-98 has been placed at $2,871.6 million, 7 per cent up over previous year. These exports are expected to reach $6,309 million by 2000-2001, according to projections outlined by Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil). Chemexcil's share in India's total exports is said to be 8.08 per cent compared to 7.8 per cent in the previous year.

In rupee-terms, chemicals related exports during 1997-98 were placed at Rs 11,484 crore ($2,871.6 million if converted in Indian rupee at an average rate of Rs 40 to one US dollar). This was higher than the targeted Rs 10,915 crore, indicating part of the higher export figure is because of the depreciation of Indian currency against the US dollar. In 1996-97, the total exports were placed at Rs 9,498crore.

Chemicals related exports have been rising since 1990-91, when they were placed at Rs 2,379 crore.

According to Chemexcil, during 1997-98 exports of drugs, pharmaceuticals, fine chemicals and crude drugs was placed at $1,367.4 million, that of dyes and dye intermediates ($605.7 million), basic inorganic, organic including agro-chemicals ($590.6 million), glycerin, soaps, detergents etc ($160.4 million) and castor oil $147.5 million. Each of these segments are projected to grow by 30 per cent in each of the next three years to 2001.

"There is an urgent need for introspection," said Chemexcil president Ramu S Deora in a statement. "We will have to improve our infrastructure and administrative machinery to strengthen our export efforts through bold and innovative measures in the Exim and fiscal policies to boost our exports."During the past two years, Chemexcil has been marketing Indian products heavily in the overseas markets. For this purpose, it had participated in various exhibitions held atAmsterdam (the Netherlands), Moscow, Morocco, Hong Kong, the UK, USA and Italy.

It had even sponsored 19 member delegation for the buyer seller meet in Syria, Jordan, Egypt and Iran. It has even launched its own website to tap international clients through Internet.

The projected 30 per cent growth in chemicals related exports, however, could be possible, said Deora, `provided all the suggestions given by it are implemented and the bottlenecks faced by the exporting community are removed completely.' In order to achieve its export targets, Chemexcil has prepared a `National Agenda for Chemexil Exports,' which has been submitted to the commerce ministry.

Among others, it has suggested to the government to continue income-tax benefits to exporters under Section 80-HHC for next five years; removal of all levies including sales tax and octroi for procurement of raw materials domestically, packing materials, etc for exports from the purview of central or state governments; reimbursement by way of CCS as wasbeing done prior to July 1991; exempt all export related incentives and reimbursements like special import licence, Exim Scrip, REP, DEPB from any state levies; allow units which export more than 50 per cent of their production, total freedom to hire and lay-off workers according to their needs, and amend labour laws to enable all exporting units to maximise production and exports at the lowest cost.

Further, the council has asked the government to announce the trade policy for the full 5-year term of Parliament after discussion with export promotion councils and the Federation of Indian Exporters' Organisation (FIEO). It has asked that no structural changes in the Trade Policy should be made thereafter without the consent of these bodies.

On the micro front the council has asked the government to bridge the gap between policy intentions and actual implementations. Chemexcil has also requested the government to take up the issue of non-tariff barriers and regional protectionism practiced by the EuropeanUnion and other countries towards Indian products.