Exim Policy to focus on jobs

Policy may be turned into National Foreign Trade Policy

Commerce and Industry Minister Kamal Nath is planning to turn the Exim Policy into a National Foreign Trade Policy on July 31 with focus on six employment generating sectors "" agriculture, textile, handicrafts, handloom, leather and gems and jewellery. In addition, the special economic zone model is proposed to be extended to services like tourism.

Officials said the minister had identified employment generation as the thrust area of his first policy and plans were now being drawn up.

They said six merchandise sectors had been identified and the commerce department was toying with the idea of sector-specific zones for the six product categories.

Farm export zones for farm products are already operational and the government may provide additional sops to generate more employment through increased exports.

While the minister told reporters at a press conference that he would announce the National Foreign Trade Policy towards the end of July encompassing the Exim Policy, senior officials said the proposal was being examined since the Foreign Trade Development Regulation (FTDR) Act required the government to announce an Exim Policy.

They said the Exim Policy could at best be renamed as the National Foreign Trade Development Policy, but its coverage would largely remain the same.

Kamal Nath and Commerce Secretary Dipak Chatterjee, however, refused to elaborate on the contents of the proposed policy. "It will integrate the Exim Policy as there is a need to look beyond that. We will focus on boosting non-IT services exports," the minister said.

Although he parried questions on the coverage of the new policy, he said, "We are not trying to negate anything but only supplement the existing provisions."

The minister said the government proposed a greater thrust for service sectors like clinical research within the healthcare sector.

He said consultations on the sector were lined up over the next few days.

Commerce department officials said they were trying to announce the policy anywhere between July 15 and July 31, but preferred the last day of the month since Parliament would be in recess after the Union Budget was presented on July 8.