Prohibitive dumping duties constraining industry growth

NEW DELHI: The government on Tuesdaycautioned that prohibitive anti-dumping and countervailing duties by thedeveloped nations including US and the European Union was constrainingindustrial growth even though exports have grown by 13.5 per cent during thefirst half of 2002-03.
"It is critical to remove regulatory inefficiencieslike prohibitive food standards" as part of efforts to realise export potentialof India''s agriculture sector, the Mid-Year Economic Review, presented toParliament by Finance Minister Jaswant Singh, stated.
Overall growth of theindustry has been constrained due to relatively slow revival of demand,competition from cheap imports and prohibitive barriers in form of anti-dumpingand countervailing petition moved by EU, US and Canada, it said.
Despitethe external sector remaining buoyant, the review said Foreign Direct Investment(FDI) in India at 1,358 million dollars during April-August was lower comparedto 1,469 million dollars in the corresponding period last year.
"Weakinvestor sentiment and sluggish performance of the Indian stock markets resultedin a net outflow of 248 million dollars through the FII route in first fivemonths of the current fiscal," it warned while pointing out that during the sameperiod last year an inflow of 873 million dollars was recorded.
In thiscontext, the review said that "retiring and refinancing" of more expensiveexternal debts was a priority in the debt management policy and added that Indiahad prepaid over 600 million dollars during first half of current fiscal bytaking advantage of softer interest regime world wide.