Govt sets new export strategy

NEW DELHI, Jan 2: The commerce ministry on Friday unveiled a medium term strategy to achieve an export level of $ 90 billion and a one per c...

NEW DELHI, Jan 2: The commerce ministry on Friday unveiled a medium term strategy to achieve an export level of $ 90 billion and a one per cent share for India in world exports by the year 2002. The target is nearly a three-fold increase over the level of $ 33 billion achieved in 1996-97.

India’s share in world exports is hovering around 0.6 per cent. For achieving the target, the strategy envisages improving the competitiveness of exports, enhancing the production base for exports in line with trends in world trade and focussing on technology upgradation.

An official release by the commerce ministry says the strategy is also addressing infrastructural bottlenecks and strengthening the institutional infrastructure available for export production and marketing. Also included in the strategy are the formulation of a trial scheme to facilitate export-linked foreign direct investment in the electronics sector and continuing and improving the export processing zones/export oriented units and EPCG schemes, helping enhancement of the production base through export-linked foreign direct investment (FDI) and active involvement with the state governments in the export effort.

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A "comprehensive" plan is also on the anvil to make EPZs free from procedural and customs constraints to make their functioning truly attractive. The strategy envisages the use of FDI as an instrument for ensuring adequate production base in such items for which there is world demand by considering special schemes to attract investment in such areas.

The strategy recognises that availability of infrastructural is crucial for the development of exports and that the mis-match between availability of infrastructural facilities vis-a-vis export growth in recent years has resulted in bottlenecks due to delay at ports, shortage of air cargo capacities, road congesion etc.

The strategy emphasises efforts at improving productivity in ports, use of information technology and modernisation of customs clearance mechanism, reduction in cost of containerisation and development of intermediate and minor ports in select locations already identified. Air cargo facilities are proposed to be upgraded and efforts would also be made to introduce a green card system for loaded trucks and containers to move without checking en-route and subject to the verification of destinations. Other issues impinging on export competitiveness include the cost of export credit, risk cover and guarantee etc. Hence the strategy also envisages continued efforts to reduce cost and availability of export credit.