Cautious welcome to trade policy review

Efforts of the commerce ministry to address constraints faced by exporters were being frustrated by the lack of inter-ministerial consensus, SK Jain, chairman (eastern region), Federation of Indian Export Organisation(FIEO), claimed here today while commenting on the annual supplement 2005 to the foreign trade policy.

The Indian Chamber of Commerce president Umang Kanoria said the annual supplement 2005 to the five year foreign trade policy released by Kamal Nath, Union minister for commerce and industry, deserved praise for setting up the inter-state trade council to engage state governments more actively in exports.

Rakesh Shah, chairman of the Engineering Export Promotion Council, said, "It would have been better if DEPB continues for next six months to enable the exporters to discharge existing contracts."

PR Agarwala, senior vice-president of the Bharat Chamber of Commerce, said the move towards setting of inter-state trade council (ISTC) would boost exports.

SN Nundy, president of Bengal national Chamber of Commerce and Industry, said,"The recommendations for simplification of procedures and lowering of transaction cost need to be seriously monitored."

Samar Mohan Saha, president of the Oriental Chamber of Commerce, said the package for tsunami-hit marine sector and infrastructure at ports would help.

Benefits to exporters were being held up by other ministries at the Centre.

The initiatives for procedural simplification would reduce transaction costs while introduction of "Aayaay niryat form" or single common application form would reduce documentation requirements, he added.

Jain said the announcement was in line with the macro objective of doubling India's trade within five years.

Continuing DEPB till May 2005 would help exporters, he admitted.

The commerce ministry had promised FIEO that an alternative scheme will compensate exporters for additional costs on account of other taxes, state issues and value added tax (VAT), he claimed.

Shah of EEPC said ISTC would facilitate coordination between states and the Centre on issues like power and labour laws.

Jain said the EDI linkage between customs and directorate general of foreign trade (DGFT) in six months would reduce transaction cost by 4-5 per cent.