Hailing the Annual Supplement to the Foreign Trade Policy 2004-2009 notified by Sri Kamal Nath, Union Minister for Commerce and Industry, the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) Presidenti Atluri Subba Rao said that th
Hailing the Annual Supplement to the Foreign Trade Policy 2004-2009 notified by Sri Kamal Nath, Union Minister for Commerce and Industry, the Federation of Andhra Pradesh
Chambers of Commerce and Industry (FAPCCI) Presidenti Atluri Subba Rao said that the achievements of trade policy have heralded an era of economic prosperity in the history of contemporary India .
Referring to the announcements made by Kamal Nath, Minister of Commerce and Industry, Subba Rao said in Hyderabad on Friday the twin objectives of first ever integrated foreign trade policy for the period 2004-2009 have been achieved well in advance. ‘Achievements have exceeded our expectations’, said the Minister.
In 2007-2008 exports exceeded 150 billion exceeding the target set in 2004 almost two and half times. India ’s trade in goods and services is now equivalent almost 50% of GDP which is unprecedented in India ’s modern economic history.
These spectcular achievements “outweigh the appreciation of rupee which was more than 12% in 2007 alone, high interest burden, raising oil prices and international economic downturn”, said Subba Rao.
At present nearly 40% of India ’s exports are routed the duty entitlement passbook scheme (DEPB) scheme and its extension upto May, 2009 is a significant measure to boost exports. The import duties on capital goods have been substantially reduced in the recent budget 2008-2009.
As a result, the customs duty payable under the Export Promotion Capital Goods Scheme (EPCG) is reduced from 5% to 3%.
The export made under EPCG scheme are made NOW eligible for export incentives under Focus Product Scheme, Focus Market Scheme, Special Agriculture and Village Industry Scheme.
100% EOUs contribute to nearly 1/5th of India ’s exports. The income tax exemption available to these units is to be discontinued by in March, 2009. However, in recognition of their outstanding export performance the benefit of direct taxes is extended for one more year beyond 2009.
Appreciating the expansion of Focus Preduct and Focus Market Schemes and inclusion of additional items such as toys, sports goods and 10 more countries, Sri Subba Rao felt would expand India ’s export basket and markets.
In order to increase the export of fruits and vegetables and also to give a fillip to village agriculture, the additional duty free credit scrip of 2.5% on the export of specified fruits, vegetables and flowers is a measure in the right direction of economic prosperity.
Telecom exports are likely to be Rs.4000 crores this year from 1800 crores last year. The figure is likely to touch 10,000 crores by 2011. With a view to encouraging exports from this sector, a separate Export Promotion Council for Telecom has been set up.
The rate of inflation has crossed more than 7% in the last few months.
Among the masures to curb the inflation incentives on the export of cement and primary steel have been withdrawn. This would discourage the exports of these items and increase the supply position in the domestic market.
Transaction costs implying expenses other than the buying and selling price are being reduced over a period of time to make exports competitive. Moving further in the direction Electronic Data Interchange (EDI) system (e-filing) is extended to Advance Authorization Scheme and EPCG scheme from 01.07.2008.
Despite export promotional measures and increasing simplification procedures, structural problems as infrastructure: manufacturing are impediments to a faster export growth.
In order to tackle the problems a joint task force with representatives of state and central governments, panchayati raj institutions, industry and exporters is likely to be set up in the coming six months.
Buoyed with the achievements the government has come out with still more an ambitious target of achieving a 5% share in global trade by the year 2020.
This appears to be impossible but looking at the phenomenal growth in exports and its contribution to GDP which has been unprecedented in the modern economic history, the target set, I am sure is within the reach.
“A target of 2000 billion for the current year 2008-09 is achieveable, ascerted” Atluri Subba Rao. Setting up of an International Trade Facilitation Centre at the Federation to assist the exporters and importers the FAPCCI would play a significant role in this direction.(EOM)