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Exports growth target under cloud

BS Economy Bureau

Maintaining that the export scenario was not too encouraging, the government on Wednesday raised apprehensions about achieving the revised 3 per cent growth target set for the current fiscal.

"The export picture is not very comfortable due to the global slowdown and other reasons that had forced us to revise our target of 12 per cent to 3 per cent," commerce and industry minister Murasoli Maran said at an open house on Exim Policy organised by the Federation of Indian Export Organisations.

The 3 per cent target could be achieved only if exports could maintain the 18 per cent growth of January during the remaining two months of the current fiscal, he added.

While refusing to comment on the problems regarding the Union Budget proposals which were raised by exporters, Maran said, "The Exim Policy will be exporter friendly.

Commerce secretary Dipak Chatterjee, however, said that in order to increase exports, it was not necessary for the government to enhance the incentives for exporters. He said that issues like simplification of procedures and closer co-operation between directorate general foreign trade and the customs department would get attention.

Director general foreign trade N L Lakhanpal later told reporters that the government was contemplating a separate legislation for special economic zones. He also said that development work in three SEZs - Nangunery, Positra and Dronagiri - was expected to commence during the next fiscal.

He, however, said that the incentives available to SEZs would continue only in the interim period till the government reduces the restrictions on trade.

"The finance minister has already said that the government would reduce the (peak) customs duty to 20 per cent over the next few years, till then the incentives would continue," he said.

The DGFT also said that the commerce department is working out the allocation of funds under the centrally-sponsored Export Infrastructure Scheme for which Rs 3 billion have been earmarked during the next fiscal with the government is working out the allocation for the scheme during the remaining four years of the tenth plan period.

CBEC chairman said that the government would announce a scheme of brand rates under the duty drawback scheme which would entail announcement of the rates within a specified time frame.

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