At a time when the government has ruled out extending the Duty Entitlement Pass Book Scheme for exporters beyond September, the Planning Commission has constituted a working group to suggest government policies to enable the private sector to meet the targeted increase in exports.
The group, headed by Commission member Saumitra Chaudhuri, will also identify policy measures to attract more foreign direct investment (FDI), particularly into manufacturing and infrastructure.
It would assess India's experience with FDI and foreign institutional investors. It would also assess existing schemes for export promotion, to explore what to do to further boost private players. It is to take stock of India's comparative advantages in trade, with specific reference to manufacturing goods and farm products and whether these have moved over the past decade. It will also recommend how Free Trade Areas and Comprehensive Economic Cooperation Agreements can be fitted into the framework of multilateral arrangements.
The group will take a view on the experience with Special Economic Zones and other special trade facilitating measures. SEZ developers are already protesting against the government proposal to impose Minimum Alternate Tax on them.
The Chaudhuri group will also assess market access issues, including non-tariff trade barriers.
This comes at a time when exports are performing well, despite other indicators pointing to moderation in economic growth. Exports were $49.8 billion in the first two months of this financial year, up 45.3 per cent compared to the same period last year. Analysts say the trend may not continue, due to uncertainty over economic recovery in the advanced economies.