The Hindu Business Line : `Exim Policy will focus on simplified procedures, cut in transaction costs'

The Minister for Commerce and Industry, Mr Kamal Nath, being welcomed by the Secretary, Mr Dipak Chatterjee, while assuming office in the Capital on Monday. — Kamal Narang

New Delhi , May 24

THE new Union Commerce and Industry Minister, Mr Kamal Nath, today said that trade policy liberalisation would continue to make a tangible effect on reduction in transaction cost to trade and industry, with the focus firmly being placed on employment generation and promotion of agro and rural sectors as well as initiatives to boost services exports.

Addressing presspersons here after assuming the office of the Minister of Commerce and Industry early in the day, Mr Kamal Nath indicated that the new Exim Policy would reflect the Government's abiding concern for procedural simplification and reduction in transaction cost to industry. He said over the next few days he would hold "intense consultations with industry and export" to get to know their operational problems.

Asked about the probable date of the new Exim Policy, the Minister indicated that it would be either on the last day of June or early July and said its basic objective should be to "make India a major source for a wide range of products and services for the rest of the world".

He said in no unmistakable terms that "our highest priority will be to accelerate the country's exports and to further augment exports on the path of double-digit growth" so as to raise the bar of the country's share in the global trade from the existing 0.8 per cent to one per cent soon.

Mr Kamal Nath said that in order to make Indian exports globally competitive, transaction cost must be minimised and procedures at all levels simplified. Policies and procedures would be export-friendly, he said adding that the forthcoming Exim Policy would really factor all these into consideration.

When his attention was drawn to the appreciating rupee which disadvantaged exporters, the Minister said that the Government did not need to slow gains in the domestic currency to protect the earnings of the exporters. But he hastened to add "we will speak to the Finance Ministry when it is necessary". In response to a query on the Special Economic Zones (SEZs), he said that these initiatives to ensure exclusive export pursuit would be encouraged so that the original purpose for which they were designed would be achieved. On the question of labour reforms and the freedom to fire and hire workers within the SEZs, the Minister refused to be drawn into any details as it is premature to say so anything on this now.

On the multilateral trade negotiations, he said, "We are pledged to fully protect our national interests, especially that of the farmers. While engaging in the negotiations, our effort will be to ensure that all agreements fully reflect our concerns. The flexibility afforded in the existing WTO agreements will be used to fully protect our interests".

On industry, he said the Government would like to encourage industrial investment — both domestic and foreign investment. He said the approach would be to simplify procedures governing industrial investment.

Efforts would have to be intensified to render foreign direct investment (FDI) policy more export-oriented. "We have to specially focus our efforts on the manufacturing sector in order to increase employment opportunities in the country".

Earlier the Minister held detailed discussions with the Commerce Secretary, Mr Dipak Chatterjee, and the Secretary, Department of Industrial Policy and Promotion, Mr Laxmi Chand, and the Special Secretary, Commerce, Mr S.N. Menon, and they all briefed him about the present trade and industrial scenario, including issues pertaining to the WTO.

In his interaction with the officials, the Minster remarked that he would like his Ministry "to be an enabling Ministry and not a disabling one". Strategies in the area of multilateral trade negotiations must also be stakeholder-driven", he said.