Exports rise 9.74 pc in Feb

Provisional trade data released by the commerce ministry on Saturday shows that exports during April-February 2000 at $ 33,316.72 million were 11.12 per cent higher than the $ 29,983.06 million in the previous corresponding period.

Imports during February 2000 were valued at $ 3,844.05 million, showing a 21.78 per cent growth over the $ 3,156.65 million in the same month last year.

Imports during April-February 2000 were estimated at $ 42,002.21 million, 10.07 per cent higher than the level of $ 38,159 million during the same period last year. Oil imports during the same period rose by 66.37 per cent from $ 5284.64 million to $ 8,791.94 million. Non-oil imports on the other hand were estimated at $ 3,210.27 million which was only 1.01 per cent higher than the level of $ 32,874.52 million.

The trade deficit estimated at $ 8,685.49 million was higher than the figure of $ 8,176.10 million in April-February 1999. The commerce ministry has targetted exports to grow by 11.3 per cent during 1999-2000. Judging by the performance so far, the target will be achieved.

SPECIAL ECONOMIC ZONES: Commerce and Industry Minister Murasoli Maran today said creation of Special Economic Zones (SEZs) announced in Exim policy 2000-01 was only a humble beginning and government’s aim was to replicate the free trade zones in China which were contributing about 40 per cent to Beijing’s total exports.

"Setting up of SEZs is only a beginning and it is wrong to compare this with the Chinese model as they had started off on a much larger scale," Maran told a post-Exim Policy interaction organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) here.

Maran said government’s aim was to replicate the free trade zones in China but added that the SEZs in the country would be "subjected to the liberal economic policies of the liberal democracy."

Stating that the objective of the amended Exim Policy for 2000-01 was to liberate exports from inspector raj, government was well equipped under the World Trade Organisation (WTO) regulations to check all sorts of predatory pricing, dumping or cartel operations in the aftermath of removal of quantitative restrictions (QRs).

"We have enough weapons under the WTO to check any predatory pricing, dumping or cartel operations. In the event of surge in imports we will not keep quite and these weapons will be used," he said. Maran had yesterday announced removal of QRs on 714 items following a ruling by the dispute settlement panel of the WTO on a petition filed by the United States contesting maintenance of QRs on balance of payments ground.

Maran said great care was taken to ascertain that the removal of QRs did not hurt the domestic agriculture and small scale industry as the bound rates of most items on which the quantitative limit have been removed, ranged between 100-300 per cent.

"Regarding the agriculture sector there is no cause for worry as bound rates under the WTO are quite high," he said adding through bilateral negotiations, the country had also raised duty rates of items with zero duty rates earlier.

Admitting that rigid labour laws were reducing the competitiveness and efficiency of Indian exporters in the global market, the Minister said treating of export oriented units (EOUs) as public utilities by state government as directed by the Centre could reduce incidence of white collar strike.

Stating that the first Exim Policy of the new millennium has been well received by the industry and public, the Minister said he was willing to look into some loopholes and unwanted elements in the policy in the coming days.