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Law soon to safeguard farm, industry sectors: Maran

Our Bureau

NEW DELHI, Feb. 15

THE Government would come out with a suitable legislation in the Budget session of Parliament to safeguard the interests of the indigenous sectors including industry and agriculture for providing a sort of ballast to cope with import surges in the light of imminent removal of all import curbs effective from April 1, 2001.

Indicating this while addressing the members of the Consultative Committee attached to his Ministry, the Union Minister of Commerce and Industry, Mr Murasoli Maran, said that a meeting with the Chief Secretaries and officials concerned of the State gover nments would shortly be convened in this regard.

``This interactive process, I firmly believe, will enrich our decision-making method and enable adoption of an effective collective approach to meet the challenges,'' he said. Mr Maran also said that he had already directed to designate a Nodal Officer i n the Department of Commerce to enable continuous interaction between the States and the Centre on WTO and export-

related matters.

Cutting across party lines, members voiced concern over the plight of farmers and urged the Government to put in place all possible steps to protect farmers' interests in the aftermath of the removal of quantitative restrictions (QRs).

While concurring with the inevitability of the phaseout of QRs and enhancing competitiveness, the Minister emphasised the need for continued vigilance.

Even though there might not be any immediate import surge in the wake of the removal of QRs, Mr Maran agreed with a member that there was need to take a long-term view of the likely impact of the outright removal of QRs.

Members urged the Government to promote opportunities for agro exports from India including plantation items such as natural rubber which would ensure remunerative return to the farmers.

In this context, Mr Maran informed that the Russian Federation had recently agreed to purchase 100 million kg of tea from India during this year.

Pointing out that a more active involvement of the States was essential for sustaining a high rate of export growth, Mr Maran said that his Ministry had already requested the Finance Ministry to make a sizeable allocation in the forthcoming Budget for cr eation of export-related infrastructure by the States.

On foreign direct investment (FDI), Mr Maran said that the Government had been encouraging FDI to supplement domestic and technology upgradation. He also assured members that the sectoral composition of the FDI approvals was consistent with the prioritie s of the country.

``Our current realisation rate of around 52 per cent is noteworthy,'' Mr Maran said referring to the low level of realisation FDI as alleged by some.

The Minister said that simplicity and transparency had been the guiding norm in FDI and Exim Policy. ``I am very glad to report that we have made nearly 100 per cent progress in this regard,'' he said, adding that the physical interface between the expor ters and the DGFT offices had been eliminated and it was hoped that with the computerisation with the Customs offices during the calendar year, the transaction cost of exporting goods and services would come down substantially.