Search the Internet          Tips  Sites: Finance, Investment

What to expect in Export-Import Policy 2001-02

India's Commerce and Industry Minister Murasoli Maran is due to unveil the government's export-import (Exim) policy for 2001-2002( April-March) on Saturday, March 31 at 11:00 a.m. (0530 GMT).

A key highlight will be the announcement of the lifting of quantitative import restrictions on more than 700 products to meet a World Trade Organisation deadline.

Another main thrust will be measures to boost exports which have grown at some 20 per cent annually in recent years.

The following gives some key facts and figures about India's trade and expectations from the policy:
Population: 1.027 billion as of March 1, 2001.
World share in global trade: 0.64 per cent.
Exports in 1999/2000: $37.5 billion.
Imports: $46.154 billion.
Oil imports: $9.66 billion.
Trade deficit: $8.62 billion.
Exports in April-Jan 2000/01: $35.65 billion
Imports: $41.89 billion
Oil imports: $13.65billion
Trade balance: -$6.23 billion
Forex reserves: $42.198 billion
Current Account deficit expected in 2000-01: 1.5-1.7 per cent of gross domestic product up from 0.9 per cent in 1999-2000.
Balance of Payment in Oct-Dec, 2000-01: $4.17 billion (surplus).
Main exports: Gems and jewellery, textile and garments, sports goods, agricultural produce, engineering goods, leather.
Main markets: United States, Asean countries, Japan.

Following are some of the measures expected in the export-import (Exim) policy for 2001-2002( April-March). The expectations are compiled from government and industry officials and newspaper reports:

Imports curbs are likely to stay over 100 items mainly in the defence, flora and fauna and the hazardous chemicals even after the last of the restrictions are removed in the Exim Policy. The items include guns and night vision glasses which have been put under the list of defence items.

Import in petroleum product would not be free even after curbs are lifted as the government is likely to give state enterprises exclusive rights to procure products for its own consumption.

The market access fund to be created for export promotion has hit a roadblock with the planning commission saying that the scheme would be duplicating efforts in the past.

The government is expected to launch a series of steps to check revenue leakage by scrapping several export promotion schemes.

Commerce and Industry Minister Murasoli Maran proposes to provide funds to states to boost their export efforts.

Government plans to set up an annual Rs 5-billion fund for export marketing. Efforts will also be made to simplify procedures for exporters.

The government plans to ban import of second hand cars which are more than five years old in this years Exim policy.

The government is expected to announce incentives to boost investment climate in special economic zones announced last year.

Simplify regulations to enable Indian exporters to become internationally competitive, says Ficci.

Easing imports of inputs and raw material and control imports on intermediates and finished products, urges Ficci.

Pledges to protect domestic industry from a surge in imports and create a level playing field for industry, says Commerce Minister Murasoli Maran.

Tell us what you think of this report