Trade bodies welcome new Exim policy

Former FIEO chief and current Chemexcil chairman Ramu Deora lauded Hegde for continuing all export promotion schemesparticularly the duty entitlement pass book (DEPB) scheme. The exporting community was not sure whether the scheme would be continued. Chemexcil is happy for reducing the threshold limit for zero duty export promotion capital goods (EPCG) scheme from Rs 20 crore to Rs one crore for the chemical sector and also the decision for compensating the five per cent customs duty and the surcharge on it by increasing the DEPB rate proportionately, Deora said.

Deora complimented Hegde for reducing the value-addition norms for rupee exports to Russia from 100 to 33 per cent which would help exports to CIS countries. Deora said the national services rendered by the exporters have been recognised by deciding to issue green cards to those exporting 50 per cent of their production and felt that exports of Chemexcil items, which were around US dollar three billion in 1997-98, would show a growth rate of six per cent in 1998-99 and 15 per cent next year.

All India Association of Industries president Vijay Kalantri said thethrust on small sector export and involvement of states in export promotion in addition to setting up of free trade zones were welcome features of the policy.

By converting all export processing zones into free trade zones with effect from July one, would help in achieving higher growth, he said. Kalantri, however, expressed disappointment that the capital goods industry as a whole was not granted the zero duty import regime.

Praveen Shankar Pandya, chairman, Gem & Jewelry Export Promotion Council, welcomed the announcement of allowing import of cut and polished diamonds to the tune of 5 per cent of the total export value. “This move will integrate the Indian diamond business with the global industries and will make Indian exporters more competitive,” Pandya said, adding, “this should have been extended to all exporters instead of only export houses.”

The Confederation of Indian Apparel Exporters said the policy announcements reflected Hegde’s intentions to meet the challenges of WTO, which would befully effective from January one, 2005. The policy is extremely encouraging for exporters and if properly implemented, without bureaucratic hassles, would definitely achieve higher export growth next year, its president Amit Goyal said.

The proposal of free trade zones was in line with the international export import business and would help in building the exports infrastructure, he added.