New Delhi: India Inc dubbed the government''s five-year
foreign trade policy as proactive and having all the elements
to boost exports, add jobs, improve competitiveness, reduce
transaction cost and bring in some procedural simplification.
industry leaders are looking at the fine print to take
on commerce minister Kamal Nath who will interact with
the industry bodies on Wednesday, the industry is more
than satisfied as against what they got from finance minister
P Chidambaram in the Budget.
is comprehensive and forward looking," says Sunil
Kant Munjal, president of CII. "It presents a vision
of India as a ''global hub'' for manufacturing, trading
and services." However, Munjal admits that CII would
have liked to see policy statements on special economic
zones and free-trade agreements.
is refreshing and challenging to exporters," says
Rafeeque Ahmed, president, Federation of Indian Export
Organisations (FIEO). "The bold sector-specific initiatives
will have a strong impetus to growth of exports as well
as employment." FIEO has reason to smile as service
tax is totally banished from exporters.
removal of restrictions on import of second-hand capital
goods has brought in some good news as well as bad news.
While the good news is that companies will be able to
bring in machinery however old it might be, from
the overseas market it will have significant impact
on capital goods manufacturers like BHEL, L&T and
ABB among others.
entrepreneur will decide whether to buy from the domestic
market or buy second-hand machinery abroad," says
YK Modi, president of FICCI. Industry leaders say Indian
companies will benefit, as second-hand machinery is available
at throwaway prices as manufacturing units are increasingly
shutting down in European and US markets.
says the proposed Services Export Promotion Council and
the Served from India scheme will help even non-IT services
like entertainment, medical tourism, accounting services
and financial services among others.
government plans to set up free-trade and warehouse zones.
"The critical aspects for achieving the targets are
timely and adequate availability of credit, improvement
in e- infrastructure and participation of states,"
says Mahendra Sanghi, president, Assocham.
Vinnie Mehta says exemption of central sales tax and service
tax on procurement for exporters of software services
will make hardware manufacturers competitive against imports.
special focus on infrastructure geared towards exports
like warehousing, cold chains, revitalising EOUs are positive
steps in the right direction," says Ravi Wig, president,
Kakkar, president, Bombay Chamber of Commerce, felt the
establishment of an independent board of trade would go
a long way in de-bureaucratising the export endeavour.