Experts feel that meaningful interaction between industry and the government will make compliance of international eco-standards easier for small and medium exporters.

Addressing a seminar on `WTO: The Emerging Trade-environment Issue,' organised by CII and the Indian Institute of Foreign Trade (IIFT) last week, K M Chandrasekhar, joint secretary in commerce ministry, said that a three-pronged strategy was needed for SMEs to increase market access: safeguard existing trade opportunities from the adverse effects of environment policies; obtain additional market access; and remove trade restrictions and distortions.

Chandrasekhar told FE Enterprise that the impact of international environmental norms on the Indian small industry would "vary from sectorto sector. The tiny units which don't use pesticides, dyes, etc, can actually gain because of the green trade norms". K Dharmarajan, director general of the IIFT, said that the need of the hour is proactive strategy on the part of Indian exporters, promotional agencies and government bodies.

Several issues are involved in promoting exports by SMEs. Access to technology is one of them; bilateral and multilateral arrangements can be made for this.

Whether there should be any subsidy to support exporting units is a question which needs to be attended in all earnest. "Subsidy per se is not bad," says Dharmarajan. "We have to take a balanced view. What is required is transparency. In any case, subsidy won't be permanent and be phased out."

Relocation of industries and common effluent treatment plants are major concerns of the day. K P Nyati, head, Environment Management Division, CII, said that green norms can't be wished away and they will become stricter with time.

"A national mechanism for forewarningis a must. Industry, government and academics have to join hands in this endeavour."