More sops proposed to rev up manufacturing, exports
The forthcoming Union Budget and the new five-year Foreign Trade Policy (FTP) would propose additional measures to
rev up manufacturing and export sectors which have been hit by global economic slowdown and consequent decline in
demand, the Union Minister for Commerce & Industry, Mr Anand Sharma, said today. In his first media interaction
after assuming office here, Mr Sharma said the new FTP would be announced in August.
"We shall look at the possibilities for more incentives. I will be discussing with the Finance Minister some
measures which would be announced in the next budget", he said, adding that he would soon interact with the trade
and industry to sort out their concerns, including transaction cost reduction and other procedural problems
plaguing them.
He said the government would seek to complete free trade agreements with the Association of Southeast Asian Nations (ASEAN) and comprehensive economic
cooperation agreement (CECA) with South Korea and Nepal, to be followed up with negotiations for similar pacts
with Japan and the European Union later. Mr Sharma said the huge flows from foreign institutional investors (FIIs), particularly
during the last three months, show the world’s confidence in India and the enormous potential which exist for
development.
Expressing confidence over the foreign direct investment (FDI) flows of about $27 billion in 2008-09, the
Minister hoped that the momentum would continue. In reply to a question about any review on the changes made to
the foreign direct investment policy (FDI) by his predecessor Minister, Mr Kamal Nath, who has been shifted to the
Ministry of Road Transport and Highways, Mr Sharma ruled out any review at the moment. “What we have on the ground
is a well-considered decision. There is no need for a review".
To a query as to the opposition to SEZ policy from Trinamool Congress (TC) and how
this would be sorted out, Mr Sharma said the SEZs had become a success, employing
7.5 lakh people directly and indirectly, attracting investments worth Rs 1,00,000
crore.
He said as many as 568 such zones had been approved of which 315 had been
notified.
As such, he saw no merit in the allegations against SEZs, adding that "our SEZ policy
has so far taken care to protect the interests of people.
Our policy intervention has been to identify with the working class".
On industrial growth, he said, "in the present climate when economies across the
world have been adversely affected and there is continuous fall in demand, we would
like to ensure that every possible step is taken to ensure that industrial output
remains stable.
“Whatever required to be done shall be done", he asserted. The government would
provide more fillip to local exporters as the focus is on seeking faster economic
growth and employment, he said.
The Minister also laid stress on "re-energising" Inter-State Trade Council by noting
that States would be involved in fostering an investor-friendly climate within the
country and also to address the State-level grievances of trade and industry more
effectively.
Mr Sharma said he is optimistic about resumption of multilateral trade talks for
greater market access in goods and services soon. "We shall see to it that in the
global context our economic engagement is intensified as it is expected of a country
of India’s profile", he said.
An official statement issued said that earlier in the day, the Commerce Secretary, Mr
Gopal K Pillai, and the Secretary, Department of Industrial Policy and Promotion
(DIPP), Mr Ajai Shankar, briefed the new Minister on the present foreign trade andindustrial scenario including
issues pertaining to the WTO.
« Back
|