The Hindu Business Line : Exporters, trade bodies welcome new policy

Mr S.L. Deoras, Managing Director, Tata International Ltd and co-chairman of the National Committee on Exports of CII, has appreciated the policy's "underlining theme of trusting the exporters to achieve the target of doubling our share of world trade." He felt that the policy addresses the needs of the exporters by retaining the DEPB scheme, providing a focussed thrust in select sectors with employment generating potential and emphasis on creating export related infrastructure.

"Tata International should benefit from the special measures for leather and footwear sector and the procedural simplification measures with this policy," he said.

The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) described the policy as "pragmatic and growth-oriented", stating that it was encouraging to note that export-import activities were being viewed as an instrument to stimulate the domestic economy.

Mr Rakesh Mehra, the SRTEPC Chairman, felt that the continuation of the DEPB scheme would be "re-assuring for the exporters who can now take a long-term view and can plan accordingly." He said another significant step was the setting up of free trade warehousing zone, which would facilitate development of India as a hub for global manufacturing and trading.

"A major emphasis has been laid on simplification of procedures and reduction in transaction costs. The uniform validity period of 24 months for all licences/entitlement certificates, exemption from bank guarantee requirements for all exporters having a minimum turnover of Rs 5 crore, additional flexibility for fulfilment of export obligation and technological upgradation under the EPCG scheme and facility to import second-hand capital goods without any age restrictions are all steps in the right direction," Mr Mehra felt.

The Indian Merchants Chamber felt that the policy would free Indian industry and trade from "the vagaries of frequent policy changes." Mr P.N. Mogre, Secretary General of IMC, felt that "it will be incumbent on the Government to free export trade not only from duties and levies and help reduce transaction costs by streamlining the procedures, but also to free it from the rigours of labour laws."

The Indian Pharmaceutical Alliance (IPA) however cautioned that "the strategy needs proper implementation and execution." Mr Habil Khorakiwala, President of IPA and Chairman of Wockhardt, pointed out that "the policy is specific about several other sectors, but there is absolutely no mention of the pharmaceutical industry. The pharma industry had urged the Government to consider the EOU equivalent to SEZ with respect to all aspects. Unfortunately, the additional sops given for EOU will hardly make any impact considering the long gestation period of three to five years before a plant gets USFDA and EU approval."