Forget props: exports expert

The first ever National Foreign Trade Policy (NFTP) of the central government will be incorporating new trade practices coming in force from January 2005 under the altered World Trade Organisation trade regime.

But there are apprehensions that in view of a lack of change in attitude, most of it is destined to stay as mere good intention and will not translate into a concrete plan.

"The NFTP is on track and bold enough to say that we are incentivising exports, but at the same time it does not chart out a game plan of co-ordinates of the clauses that has been spelt out in the document. As the commerce ministry is not the implementing ministry in every case and the document also implies the involvement of the agriculture ministry, power ministry, IT and finance, most of the clauses will remain as a promise and few are destined to be implemented. However, views of the document are correct and would have helped if proper steps could be taken,'' said Sudhakar Kasture, director of Exim Management Institute, Mumbai.

Kasture was in Goa to interact with exporters and importers here at the initiative of Goa Chamber of Commerce and Industry (GCCI).

While he called for a change in the approach and attitude of the government, he also added that, "a target of $120 billion of exports from India by 2007 does not need any persuasion as the country is the best choice after China and will go on getting orders if we can supply quality goods within the specified time. It is the only alternate source, so any pursuit to get orders should succeed.''

Kasture asked the exporters to forget about duty entitlement pass book (DEPB) scheme or duty drawbacks in the long run as the amount spent on these schemes by the exchequer to the tune of Rs 39,704 crore is unsustainable under any circumstances and it will have to go.

"Exporters have come to depend on these schemes but should now learn to float on its own. It is not that government will not encourage exports but it will have to take a separate form, but definitely to not such an extent,'' he said.

Saying that the domestic market is no more a safe haven for local goods, with the Korean and Japanese goods flooding it, he emphasized the exporters to "Look East''.

"Many of these countries want goods of good quality at cheaper price, which only India can supply. They also dislike West and so look forward to India to help them out. Indian exporters just need to explore the opportunity. The treaty with Thailand is a starting point and India should get into bilateral agreement like these, but on a whole to survive, Indian companies and their exports will have to grow by nearly 40 per cent in coming years,'' he added.