Comprehensive, challenging and forward looking

CHAMBER REACTIONS

Leading industry chambers welcomed the Foreign Trade Policy announced yesterday calling it "comprehensive", "challenging" and "forward looking".

The Confederation of Indian Industry (CII) President Sunil Kant Munjal said, "It presents schemes to develop exports across all sectors of the economy, it sets a target of doubling India's share in global trade and it presents a vision of India as a 'global hub' for manufacturing, trading and services."

The minister's strategy and approach are very much in line with the proposals made by CII. Special initiatives for agriculture, gems & jewellery, handlooms & handicrafts and leather & footwear. The announcement of special packages for these sectors as well as the lowering of the threshold limit for towns of export excellence will give an export thrust to enterprises in rural and semi-urban areas. However, CII complained that the policy did not cover project exports which has excellent prospects.

The Ficci President Yogendra K Modi said that this policy not only encompasses the entire export chain but goes beyond that in the sense that it takes cognisance of India's export competitiveness Exemption from service tax to exporters both in EOUs & SEZs, as well as those in DTA area, will help exporters build on their cost competitiveness.

Special focus on services exports has been another highlight of the new policy according to FICCI.

ASSOCHAM President Mahendra K. Sanghi welcomed the government decision to set up free trade warehouse zones in which the service exports will be encouraged. The duty free import of capital goods for agriculture exporter and permitting 100 per cent FDI in the Free Trade Zones are welcome measures to boost India's agricultural exports.

Sanghi also welcomed the policy announcement for exempting exporters whose annual turnover is Rs 5 crore from the bank guarantee requirements. `The policy aims at exempting EOUs from service tax as also the continuation of popular export incentives, DEPB scheme are the decision which will benefit theexporters and subsequently the country," he added.

On the constitution of the Board of Trade, Sanghi suggested that the chambers should have representation in it to represent the cause of the exporters and business and trade and its recommendations should receive serious consideration.

Welcoming the announcement of the policy, Ravi Wig, President, PHDCCI said that the emphasis on evolving a partnership approach between the industry and the Government for doubling India's merchandise exports in the next five years is indeed a positive step. "In the current global trade dynamics, only a partnership approach with the government acting as a facilitator can help India in assuming its rightful place amongst leading world players," he said.

The promise of effective trade facilitation for export promotion by the government through regular consultation with the industry, along with the revamp of the Board of Trade, activation of Indian Missions abroad, provision of real time trade intelligence, etc. would greatly encourage the industry's export performance, PHDCCI said in a statement.

M Rafeeque Ahmed, president of the Federation of Indian Export Organisations, said: "There is no doubt that the approach and content of the National Foreign Trade Policy (NFTP) has enthused everyone in the export business. By addressing a large number of our concerns to the extent possible, like reduction in transaction cost, continuation of the DEPB Scheme, neutralization of many of the duties and levies on inputs in export production, and giving special support and incentives to several traditional industries, especially those associated with rural and semi-urban areas and agro-allied sectors, the Policy has endeared itself to a large cross-section of the exporting community."