The Export-Import (Exim) Policy 2004-05, to be announced in July, will aim at boosting the export competitiveness of Indian goods and services through drastic reduction in transaction cost and procedural simplifications. Addressing an interactive meeting organised by the Federation of Indian Chambers of Commerce & Industry (FICCI) here today – the second in the series of his interactions on Exim Policy with trade and industry – Shri Kamal Nath, Minister of Commerce & industry, assured the exporting community of all help in achieving double-digit growth on a sustainable basis. He reiterated that “the role of our delivery systems have to be reoriented for the expansion of India’s manufacturing and services base in general and exports, in particular”. The long-term perspective of India as a significant player in international markets would be kept in mind and the strategies tailored accordingly, he added.

FICCI President, Mr. Yogendra Kumar Modi, welcomed the proposal to set up a National Manufacturing Competitiveness Council to address constraints faced by the manufacturing sector and improve its competitiveness and said that this new initiative would speed up the process of implementing changes required to impart greater competitiveness to Indian manufacturing and exports. He urged the Minister to lead a multi-ministerial approach to provide greater impetus to competitiveness and exports.

Mr. Modi also drew the attention of Shri Kamal Nath to the lack of labour reforms as a major roadblock to further investments in labour intensive manufacturing. He urged that, at least for new investments, there should be flexibility in labour market to promote and maximise labour intensive manufacturing in sectors like textiles, garments, leather, food processing. Similarly for exports, which are cyclical, he suggested that contract labour should be allowed without any restriction.

For the forthcoming Exim Policy, he said that two critical issues must be addressed – first, reduction in transaction costs and second, implementation of WTO-compatible duty neutralisation schemes to reimburse all indirect taxes including local levies.

Shri Kamal Nath assured the captains of trade and industry that he would look into their suggestions and take up, as required, with the concerned Ministries and Departments, including the Ministry of Finance.

Sectoral issues pertaining to competitiveness in sectors like textiles, food processing, chemicals & pharmaceuticals and entertainment were highlighted. Important presentations were made by Mr. Harsh Pati Singhania on manufacturing, Mr. O. P. Lohia and Mr. Sudhir Dhingra on textiles & garments, Mr. Abhiram Seth on food processing and Mr. Rafeeque Ahmed on exports.