Trade Board – finding ways to help Exim Inc.
The recent call from Prime Minister Manmohan Singh asking respective ministries to slash red tape and increase productivity to achieve a two-way trade target of USD 500 billion by 2010, received the thumbs-up from all quarters. Indeed removing bottlenecks in infrastructure and easing rigid labour laws to boost the share of Indian-made products in the global market have become very important now.

However this is just one chapter of the novel. Substantial increase in Foreign Direct Investment (FDI) inflows will also have to be looked into since promotion of exports would require substantially higher inflows of FDI. And to make India a more attractive destination for investments we need regulatory reforms.

I would say time-bound clearances and self-certification for various obligations could be the first step followed by setting up benchmarks for trade facilitation and improved logistics.

I have seen both foreign investors and buyers recoiling because of the hassles and delays due to official procedure. Once this is done away with, I see no reason why the exim community shouldn’t be happy.

Moreover India has to continue with bilateral, regional and multilateral trade agreements to help exporters to explore newer markets.

The trade board’s decision to set up five working groups which includes evaluation of the duty entitlement pass book (DEPB), special economic zones (SEZs) and export-oriented units (EOUs) is another area well touched. I am optimistic that when they meet again in September we will have lots of reasons to cheer.