Nothing to tide over rupee crisis: Chambers

INDUSTRY REACTIONS

2007 Supplement to Foreign Trade Policy 2004-09.

In a guarded welcome to the third annual supplement of the Foreign Trade Policy (FTP) 2004-09, industry chambers said the measures would lead to growth in exports, even in the high technology sector. However, they expressed concern over the lack of any package for the textile sector. In addition, industry was also disappointed over the lack of guidelines for helping the export community deal with the recent appreciation of the rupee.

FIEO
Federation of Indian Export Organisation President GK Gupta said the need of the hour is for all-inclusive growth which is vital to sustain growth of exports and GDP. "The concession given to export houses for infrastructure development meant for agro-processing would encourage them to enter this sector," said Gupta, adding that the extension of Focus Market Scheme across 10 countries in CIS, other than six other countries, will encourage exporters to explore territories new territories.

CII
Welcoming the enhanced focus on high-tech exports and agricultural products in the the Foreign Trade Policy, the Confederation of Indian Industry (CII) President R Seshasayee said, "New scheme providing duty-free benefit for a list of products to be covered under high-technology exports would go a long way in promoting high-tech product exports from India."

Seshasayee was of the view that the series of measures announced to boost agricultural product exports, especially the value-added variants, is important to promote inclusive growth. The focus on post-harvest value addition through a new scheme will also help cut down the wastage of agricultural products in the country while boosting value-added agricultural exports, the CII president said.

FICCI
The Federation of Indian Chambers of Commerce and Industry (Ficci) said the policy was dynamic in nature. "The dynamic initiatives announced by the commerce minister will not only give a big push to India's exports, more importantly the thrust on promoting labour-intensive sectors will significantly boost employment generation," Habil Khorakiwala, president of Ficci, said.

ASSOCHAM
It was a mixed response to the annual supplement to the FTP from Associated Chambers of Commerce and Industry of India (Assocham). The industry chamber expressed disappointment over rising interest rates that have eroded the margins of exporting communities, particularly in small scale industry segments. "The cost of money for this has been very expensive in the last couple of weeks and therefore RBI should be advised by commerce ministry to take corrective measures," said Assocham President Venugopal Dhoot, adding that the policy statement "lacks guidelines to prevent rupee appreciation against dollar, which rendered our exports incompetitive as exporters have long been feeling a pinch".

PHDCCI
"Special focus on handlooms, handicrafts, cottage and tiny industries, gems & jewellery, agro infrastructure, and the new scheme on export of high-tech products should lead to diversification in the export basket," the PHD Chamber of Commerce and Industry said, adding that steps such as procedural simplification of EPCG are welcome measures in this direction.