Trade policy tomorrow; may act as crutches to exporters

NEW DELHI: India will tomorrow unveil its foreign trade policy that is expected to eliminate or refund taxes and offer cheaper bank credit to recession-battered exporters, besides encouraging them to look beyond the US and European markets.

The policy will outline the government's priorities over the next five years for resurrecting the sector that contracted by over 31 per cent in the April-June quarter.

Job-intensive segments such as textiles, handicrafts, leather and gems and jewellery will receive special attention by way of zero taxes or tax refunds and subsidised credit.

"Tomorrow's FTA may satisfy many... (but) may not satisfy everyone. It will be forward looking, taking on board the concerns of the industry, particularly the labour-intensive sectors. They will get special attention," Commerce and Industry Minister Anand Sharma said.

Exporting units employ 150 million people and their jobs were the first to be put to risk following the demand slump in traditional export markets such as the US and Europe.

Sharma, who would be presenting his first FTP, said that he would like exporters to diversify their portfolio beyond North America and western Europe. As much as 54-55 per cent of India's USD 168 billion exports land US and European ports.

Africa and Latin America remain the least priority for the exporters while full potential with south east Asian economies has not been realised. "I have directed my team to prepare a strategy paper for Africa and Latin America," Sharma said.