The Hindu : Business : Aim for $100 b, exporters told

Online edition of India's National Newspaper
Wednesday, Oct 19, 2005

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Business

Aim for $100 b, exporters told

Special Correspondent

Kamal Nath asks exporters to identify and tap unexplored markets

NEW DELHI: Union Minister of Commerce and Industry Kamal Nath on Tuesday exhorted exporters to meet the challenge of taking India's exports to a level of $100 billion in the current financial year by exporting $8 billion more than the official target of $92 billion set for the year.

Addressing heads of all export promotion councils (EPCs) and commodity boards at a mid-term review meeting on export performance, the Minister urged exporters to prepare plans for tapping those markets where India's exports had so far been either nil or negligible. "In fact, seeking market access for India's goods and services is one of our principal objectives in multilateral trade negotiations. Our position in the WTO is aimed at safeguarding our national interest in agriculture and other key areas, as well as to ensure that interests of domestic industry are fully protected,'' he explained.

Mr. Nath agreed that there was need for export-friendly policies. Sharing the revised and final estimates of trade data available from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) for the last financial year, he said India's merchandise exports in 2004-05 were now estimated at $81 billion, indicating a record growth rate of 26 per cent, while imports were valued at $109 billion.

Thus, total engagement with the world economy was $190 billion in 2004-05, the Minister said, adding that if combined with services the engagement would be much higher. Stating that exporters must be actively involved in the process of negotiating regional trade agreements (RTAs), the Minister said the RTAs must ensure a level playing field to be a successful and must be a win-win for all. "I am confident that given a level playing field, you will not be afraid of any multilateral or regional agreements,'' he said. He also suggested to setting up of a sub-committee on RTAs, which should comprise representatives of the EPCs and the like.

Earlier, S. N. Menon, Commerce Secretary, and K. T. Chacko, Director General of Foreign Trade (DGFT), indicated that the replacement scheme for the Duty Entitlement Pass Book (DEPB) would be finalised soon and that there would be a fairly long overlap period to ensure a smooth transition.

UNI reports:

`Let market fix rupee'

Mr Kamal Nath told reporters on the sidelines of the meeting that market forces should be allowed to determine the rupee-dollar rate.

The rupee on Tuesday fell below the 45-level mark in intra-day trading to the delight of the exporting community which is opposed to any intervention by the Reserve Bank of India. They contend that the depreciation of the rupee could barely offset the high transaction costs suffered by Indian exporters.

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