Far reaching exim policy announced
New Delhi: Come March 31 every year, the country waits with bated breath for the export-import (exim) policy to be announced. This year, like every year, Mr. Murasoli Maran, union minister of commerce, released the latest exim policy that is likely to change the face of many businesses in the country.  

The import floodgates have been opened for virtually everything except, liquor, cigarettes, cars, chocolates, televisions and items reserved for the small scale industry. Despite the stiff 50 per cent overall duty structure, the price differential in the global markets may see a large scale impact on several businesses including consumer durables, apparel, processed foods, footwear, toilet fittings, electrical equipment, watches and handicrafts. The new policy will provide focussed fillip to gem and jewellery, software, pharma, agro-chemicals and bio-technology, rationalise a raft of export promotion schemes and simplify procedures to cut down transaction cost.  

While duties have been imposed to protect several domestic manufacturers for low end products, the manufacturers of high end premium products may have to watch out.

In the durables section, the freeing of imports for several electronic goods like music systems, microwaves, vacuum cleaners etc. is expected to offer the consumer with tremendous choice.
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Chinese experience to be replicated
New Delhi: The new exim policy announced by the minister of commerce, draws heavily from the Chinese model of development. In keeping with the model, India will also develop several special economic zones (SEZ) which will promote exports from India. The only laws which will operate in these zones will be the labour and banking laws. The minister also announced that a policy on attracting 100 per cent foreign direct investment in these zones will be announced shortly.

The first such experiment is to be launched at Positra, near the Pipavav port in Gujarat. This Rs. 10,000 crore project is modelled along the Scenzhen SEZ in China and will come up on a sprawling area of over 200 sq. kms.
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