Section 80 HHC benefits likely to be restored: FIEO chief

BANGALORE: The Union Commerce Minister Arun Jaitley has asked the Finance Minister Jaswant Singh to fully restore the benefits under Section 80 HHC, the president of the Federation of Indian Export Organisations (FIEO), Mr Rafeeque Ahmed, said on Wednesday at an interactive meeting with the Indian commercial representatives (CRs) in western Europe.
Mr Ahmed said the initiative was being taken by Mr Jaitley in the context of the rising value of the rupee against the dollar and the subsequent impact on exports, leading to a fall in the average growth rate to 8.4% in 2002-2003 as against 18% achieved last fiscal. The Central government was, Mr Ahmed said, also looking at exempting export units from the Contract Labour Act.
In view of the vital role that CRs posted in various Indian missions abroad had to play in promoting trade and economic ties, the Union Commerce Ministry had taken the initiative to bring them face to face with exporters. CRs from Austria, Ireland, Norway, Spain, Switzerland and Turkey presented the opportunities available for promoting exports to these countries.
In 2002-03, India’s bilateral trade with the countries in western Europe was around $3.35 billion. The CRs stressed that apart from traditional exports (such as chemicals, non-ferrous metals, iron and steel products, readymade garments, textiles, coffee, tea), the time was now ripe to focus on India’s strengths in the fields of information technology, biotechnology, services and pharma.

India could, they added, benefit by promoting environment-friendly, organic products which had a great premium in these countries. A more proactive approach such as holding buyer-seller meets was needed to boost trade, they added.
The exporters, on their part, sought better infrastructure and more support from the CRs. The conference was organised under the aegis of the Union Ministry of Commerce. The Union Ministry of External Affairs (MEA) was represented by its directors M P Gavai and Dammu Ravi.
Mr Rajeet Mitter, joint secretary, Ministry of Commerce, stated that in the wake of the success of the Focus LAC (Latin American Countries) and Focus Africa, his ministry was working in partnership with the MEA, Indian embassies and the private sector to advance economic diplomacy abroad.