Export red tape to be pruned

Kamal Nath wants India to be a manufacturing hub too.

India should not only become a major player in the services sector but also strive to be a manufacturing hub, according to Commerce and Industry Minister Kamal Nath.

"Exports should be an engine of growth for the economy, for which the country has to specialise in areas like manufacturing and services. Exports should also contribute to employment generation," Nath said at an interactive session with the Federation of Indian Export Organisations ( FIEO) organised by the PHD Chambers of Commerce and Industry.

The minister said he wanted to increase the large exporter base in the country. "More and more small exporters should graduate to being medium level exporters, while the medium ones should be able to become large exporters," he said.

Nath said he was open to restructuring and repositioning of the procedures, but he wanted the exporters to come up with specific suggestions regarding the kind of procedural difficulties that were to be removed.

He said the exim policy would be shaped in such a way so as to accommodate the outcome of the World Trade Organisation talks over next three-four years. He said the ministry would not be a mere enabling tool but would act as a facilitator for a better export health of the country.

The minister also assured all possible efforts to keep transaction costs at minimum level possible. He added the aim would be to unshackle exports from unnecessary controls and delays.

The exporters earlier had complained of appreciating rupee and other adverse domestic conditions eating into their profit margins. The exporters also wanted the transactions costs to be reduced, so as to make Indian exports more competitive.

Stressing on the need to have exporter friendly policy, Subash Mittal, vice-president of FIEO, said, "The share of export in world export last fiscal fell to 0.7 per cent from 0.8 per cent during the previous year, even when India is targeting a share of 1 per cent by 2008."