The Hindu Business Line : Complex procedures hit exports: CII survey

THE complexity of procedures is believed to be hampering the economy's robust export performance, according to the CII's (western region) survey on `Procedural issues in exports'.

The survey found that 70 per cent of its respondents felt that the global slowdown had moderately affected exports from India, while 12 per cent felt that it had significantly affected exports. Seventy-four per cent felt that the export growth of 18 per cent in 2002-03 was sustainable this year.

Regarding the Foreign Exchange Management Act (FEMA), 73 per cent of the respondents felt a number of changes — such as the transfer of goods to branch companies be allowed; forms A1 and A2 for remittance in foreign exchange for imports be scrapped; intervention to slow the rupee's appreciation; and open account dispatch be allowed without the involvement of banks — were required to further improve it.

The respondents suggested such improvements at ports/airports as the faster movement of containers from CWC; turnaround time of vessels be reduced; faster export copy processing and reductions in port charges.

The survey also added that the current trends of strong capital and invisible inflows were likely to continue. The recent liberalisation of the norms for external commercial borrowings together with Moody's upgrading of India's foreign currency rating to investment grade would strengthen debt inflow.

These, it said, were likely to pressure the rupee and therefore to sustain and improve export competitiveness, it was important to consider issues relating to procedural simplification of Indian exports.

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