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Thursday, November 12, 1998

Electrical association seeks changes in export-import policy 

Vandana Saxena  
Mumbai, Nov 11: The Indian Electrical & Electronics Manufacturers' Association (IEEMA) has sought changes in the export-import policy to increase exports. The association will submit its proposal to the director general of foreign trade (DGFT) next month.

IEEMA wants more products to be included in the duty-exemption pass book scheme (DEPB) scheme and simplification of the export promotion capital goods scheme (EPCG). It also wants the quantity-based advanced licensing scheme to be made more transparent for the benefit of the industry, said Sunil More, secretary general, IEEMA.

The electrical and electronics industry which, so far was concentrating on the local market has to give more thrust to exports, he said. This is primarily because demand from the local market has fallen in the past two years. "As the industry is facing global competition in the local market, then why not to create market abroad," said More. Thus, it is important to have a more export-friendly policy.

The Rs 25,000 crore industryhas seen only two-three per cent growth in the last two years against the eight-ten per cent growth between 1994-96, said More.

"We have very little control on demand, he said, adding that in the past there has been hardly any growth in the core sector, especially power, which is the largest consumer of these items. The general slowdown of the economy also affected growth. When the sector was privatised, the electrical industry expected huge demand potential from the public and the private sector. However, neither have the electricity boards installed capacity nor has the private sector implemented many projects.

The export quantum of the industry, which was merely five per cent now, needs to be enhanced for this the export-import policy requires continuous improvement, said More.

Recently NL Lakhanpal, the director general of foreign trade, agreed to make certain changes on excise norms. He said that the government would pay interest on delayed payment on account of refund of excise duty to deemedexport contracts.

Lakhanpal also said that applications made by exporters for ad hoc input and output norms would now get automatic approval in case the DGFT does not inform otherwise. In view of severe competition in the global market, more attention is needed to boost the exports, he said.

"Most of our exports are directed to the developing countries in south east Asia, the Gulf and Africa and the financial crisis in some countries have enhanced price competition, he said. Demand from the developed world is marginal as the core industry is already well-developed in these countries," he added.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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