Interim trade policy may make rules easier for exporters

NEW DELHI,: The government is likely to remove several procedural bottlenecks for exporters in the interim foreign trade policy to be unveiled by Commerce and Industry Minister Kamal Nath here on February 26.

The policy, though interim in nature, will address immediate concerns of exporters who are facing shortfall in demand for Indian goods in the recession-hit overseas markets like the US, a Commerce Ministry official said.

Exporters may be given more time to meet their export obligations in return for duty-free import of machinery and reimbursement of taxes without waiting for export proceeds.

The interim measures would be announced as an annual supplement to the five-year policy 2004-09 that was unveiled by the UPA Government at the beginning of its tenure.

The foreign trade policy lists the procedures, incentives for exports as also import rules. Though the policy has a five -year tenure, the government keeps changing the rules depending on the fast-changing trade scenario. For instance, the government had banned export of wheat and other food articles last year in the wake of high inflation.

It would be up to the new government to announce a full- fledged trade policy, the official said.

India's exports would be growing at lesser pace this fiscal as demand in the buying markets is slowing. Exports totalled USD 162 billion in 2008-09.