The Hindu Business Line : EPCs to aim for 15 pc export growth

WITH the country's medium-term export strategy (2002-07) showing consistently higher export growth than the 12 per cent set in the strategy, the Commerce Secretary today convened a meeting of the chiefs of export promotion councils (EPCs) and commodity boards to assess the ground realities and draw a plan of action to determine the export target for the current fiscal.

Though no firm target has been set for the current fiscal, sources privy to the conference told Business Line here that some of the big EPCs such as gem and jewellery, chemicals and related products and apparel assured the Ministry of compassing at least 15 per cent export growth in dollar terms during 2004-05.

The sources said that at the beginning of the first-part meet today, the Economic Adviser, Dr H.A.C. Prasad, highlighted the importance of factoring in the proposed export plan of action issues raised in the common minimum programme (CMP) like employment, small-scale industries, modernisation of powerlooms, handloom, garments, cashew, self-employment and services sector such as information-technology enabled services (ITES).

These along with the international situation would be factored in as the world economy is looking up. Last year, the world exports have been higher by 16 per cent in dollars and the outlook for this year is also salutary.

In his observation, the Commerce Secretary, Mr Dipak Chatterjee, has lauded the export promotion bodies for their excellent performance last year and said there is now a renewed confidence in the country's manufacturing sector, which he termed it as a healthy sign.

He also underlined the need to focus on sectors which contribute to generate employment like textiles, handicrafts and gems and jewellery. The representatives of the export promotion councils assured the Government that all efforts would be made to sustain the export growth during the current fiscal. They also made presentations about the plans and strategies they would be adopting in their respective sectors.

Some of the exporters associations have raised issues relating to disbursement of DEPB (Duty Entitlement Passbook) credit and introduction of value-added tax (VAT) with a rider that exporters should not be compelled first to file the tax and then claim the refund. Export finance, logistic problems and benefit of tax exemption of export profits were also highlighted to keep the exporters margin from being eroded, the sources said.

The Commerce Secretary would also preside over another round of meeting with services exporters before finalising an integrated export target with the Union Commerce and Industry Minister, Mr Kamal Nath, who is now in Brazil, taking part in the eleventh session of the UN Conference on Trade and Development (Unctad).