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The year 2000 witnessed a surge in India's exports with sustained double-digit growth -- the highest recorded in over a decade -- justifying the optimism expressed by Shri Murasoli Maran, Union Minister of Commerce and Industry, at the Economic Editors' Conference held in October 2000 when he had indicated that the export target of 18 per cent growth in dollar terms set for the year 2000-2001 would be exceeded going by the export trends during the year 2000. As per the latest available data, India's exports during April-October 2000 were valued at U $ 25013.99 million (i.e. $ 25 billion) registering a growth of 20.51 per cent over the level of US $ 20757.15 million (i.e. $ 20 billion) achieved during the corresponding period of 1999. In rupee terms, India's exports during April-October 2000 are up by 25.59 per cent. High growth has been witnessed in exports of many items such as engineering goods, chemicals & related products, ores & minerals, leather & leather manufactures, gems & jewellery, marine products, oil meals, textiles and electronic goods. Focussed strategy such as the "Focus: LAC" programme resulted in over 40 per cent growth in India's exports to the Latin American region. Further, to improve upon this rate of growth so as to achieve a quantum jump, the government initiated steps during the year to work out a medium term export strategy (2000-2005) in consultation with Export Promotion Councils and Commodity Boards. In the drive towards deeper diversification and greater export dynamism, the emphasis has been on investments and technology in export production so as to ensure that the country has the required exportable surplus of quality products for the world markets.

In a major policy initiative, the setting up of Special Economic Zones (SEZs) was announced by Shri Maran in the Export & Import (Exim) Policy for the year 2000 with a view to providing a world class, internationally competitive and hassle free environment for exports. Notifications were issued to provide a customs framework free of control. Together with FDI policy initiatives for SEZs, it is expected that these zones will have the potential to act as "magnets" for investments for export production from home and abroad. As a first step, four existing Export Processing Zones (EPZs) -- at Kandla, Santa Cruz, Cochin and Surat -- were converted into SEZs with effect from 1 November, 2000. In principal clearances have been given to the establishment of new SEZs at Positra (Gujarat), Nangunery (Tamil Nadu), Kakinada-Vizag (Andhra Pradesh), Paradip (Orissa), Kulpi (West Bengal) and Bhadohi (Uttar Pradesh).

Efforts were continuously made during the year to enable the exporting community not only to reduce their transaction cost but also to save their time for concentrating on quality upgradation and marketing. A major computerisation programme was launched in the offices of DGFT and all the Port Offices of the DGFT are to be computerised by 31 December, 2000. The facility of electronic filing of applications has been made available in all these offices. E-governance and EDI initiatives in this area are fast making repeated trips to the government offices in the foreign trade area a thing of the past.

A scheme was evolved for involving the state governments in exports by providing financial assistance proportionate to their export efforts. An allocation of Rs.250 crore was provided during the year for this purpose. An Export Development Fund as proposed in the action plan of the Prime Minister for the North Eastern Region was set up with an initial corpus of Rs.5 crore, besides a series of measures currently underway for the development of trade and exports for the North Eastern Region for which assistance is being provided. An export strategy has also been drawn up for the State of Jammu & Kashmir.

On the import front, the government took major initiatives to protect the interests of the domestic industry. An Inter-Ministerial Group under the chairmanship of Commerce Secretary was constituted on 28/7/2000 to assess the likely impact of the removal of quantitative restrictions (QRs) and to suggest suitable corrective measures. Others measures recently taken by the government include: (i) Increase in import duties on a number of items -- for example, the raising of duty on arecanut from 35% to 100%, on poultry products from 35% to 100%, on wheat from 0% to 50%, on skimmed milk powder from 0% to 60%, on apple from 35% to 50%, and on rice from 0% to 80%; (ii) Initiation of suo-moto anti-dumping investigations in respect of import of battery cells, battery operated toys and sports shoes; (iii) Subjecting import of all packaged commodities to compliance of all the conditions of the Standards of Weights & Measures (Packaged Commodity) Order, 1977, as applicable on domestic producers; and (iv) Subjecting import of 131 products to compliance of the mandatory Indian quality standards as applicable to domestic goods. For compliance of this requirement all manufacturers/ exporters of these products to India are required to register themselves with Bureau of Indian Standards (BIS). The list of 131 products included various food preservatives and additives, milk powder, infant milk food, certain kinds of cement, household and similar electrical appliances, gas cylinders and multipurpose dry batteries.

On the multilateral trade front, mandated negotiations in respect of the WTO General Agreement on Trade in Services (GATS) and the Agreement on Agriculture (AoA) commenced from 1 January, 2000. In order to outline strategies for these negotiations, the Ministry has held interactive meetings with various stakeholders including major industry associations, research institutes, concerned administrative ministries and departments of Government of India and professional associations in the area of services, while in respect of agriculture, interactive meetings were held with major industry associations, besides which the Ministry also participated in meetings organised by the Ministry of Agriculture with State governments, farmers' representatives, political parties and voluntary organisations. India has been participating effectively in these ongoing negotiations in the WTO with a view to protecting our national interests. India's main concern in the services negotiations is to have commitments from the developed countries regarding movement of natural persons, especially professionals (under the Mode-4). In agriculture, India's priorities in the negotiations are to get increased market access in the developed country markets by making them remove their trade distorting subsidies etc; and to ensure food security by making sure that the livelihood of farmers is not adversely affected due to imports. In another major initiative, negotiations for upward revision of tariff bindings under Article XXVIII of GATT 1994 were completed in respect of certain agricultural products which were bound during the previous rounds of GATT negotiations at zero or low levels of tariffs. Upward revision on these tariff bindings for such agro products under Article XXVIII was done with a view to giving the necessary protection to domestic agriculture and agro-industry. Within these bound tariff levels, there is considerable flexibility for imposing appropriate tariffs on import of agricultural commodities for protecting the interests of the farmers.

Shri Omar Abdullah, Minister of State for Commerce and Industry, has said that the government is closely monitoring imports and all necessary steps are being taken to safeguard the interests of domestic industry. He assured that the government is fully alive to the situation and is taking every possible step to prevent dumping of goods in the Indian markets and to ensure that imports do not enjoy any unfair advantage over domestically produced goods. In a statement in response to the Calling Attention Notice tabled in the Rajya Sabha today by Shri Sanjay Nirupam and other members regarding dumping of Chinese goods in Indian market and its adverse effect on the Indian economy, he explained that the available import data showed that there had not been any surge in imports on an overall basis as a consequence of the removal of QRs. In fact, the total imports from China constituted, on an average, less than 3 per cent of India’s total imports. Citing the example of electronic goods, he pointed out that of the total imports of Rs.3224 crore from China during April-September 2000, the value of electronic goods was only Rs.515 crore. As against this, the domestic production of electronic goods in India is of the order of Rs.30,000 crore.

"As per principles of GATT, trade among member countries is conducted on the basis of Most Favoured Nation (MFN) treatment principle. This means that any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other contracting parties. Though China is not a member of WTO, India and China have accorded MFN status to each other as part of bilateral agreement. Thus after removal of quantitative restrictions (QRs), imports from China are also free.

A perusal of import data reveals that there has not been any surge of imports on an overall basis as a consequence of removal of QRs. In fact, the rate of growth of imports which stood at 36.40% in 1995-96 has come down progressively over the years to 13.2% in1996-97, 11% in 1997-98 and 14.2%in 1998-99 and 13.6% in 1999-2000. The total imports from China constitute, on an average, less than 3% of the total Indian imports. The growth rate of imports from China has been (-) 3% in 1996-97, 62% in 1997-98. 3.5% in 1998-99, 25.6% in 1999-2000 and 30% during the April-September 2000-2001. Out of total imports of Rs.3224 crore from China during April-September 2000, the value of electronic goods was Rs.515 crore. The domestic production of electronic goods is of the order of Rs.30,000 crore.

The Designated Authority appointed by the government conducts anti-dumping investigations in India under Sections 9A, 9B and 9C of the Customs Tariff (Amendment) Act 1995. According to the Anti-Dumping Rules, initiation of anti-dumping investigations is undertaken when the domestic industry files a fully documented petition to the Designated Authority with prima-facie evidence of dumping, injury to the domestic industry. However, under Rule 5(4) of the Custom Tariff Rules of 1995, the Designated Authority may initiate investigations suo-motto, if it is satisfied with the information received from the Collector of Customs appointed under the Customs Act 1962, or from any other source that sufficient evidence exists regarding dumping of the foreign goods, material injury to the domestic industry and causal link between the two. In all, the Designated Authority has already imposed since its establishment anti-dumping duties i.e., 68 crores under the provisions. In respect of electronic goods from Chinese companies, the Designated Authority has initiated anti-dumping proceedings against dry batteries and toys. In case any other segment of Indian industry affected by dumping from China or any other country files a petition, the Designated Authority will take appropriate action.

The government is closely monitoring the imports and all necessary steps to safeguard the interests of domestic industry are being taken. Towards that end, a notification has recently been issued prescribing quality standards for 131 products and mandatory compliance with the provisions of Standards of Weights and Measures (Packaged commodity) Order 1977 on imports, as applicable on domestic products.

It will thus be seen that the government is fully alive to the situation and is taking every possible step to prevent dumping of goods into the Indian market and to ensure that the imports do not enjoy any unfair advantage over domestically produced goods".

The two-day International Colloquium on WTO Negotiations on Agriculture got underway with participants including India stressing the need to remove distortions in the world agricultural trade which have persisted despite the Uruguay Round Agreement on Agriculture aiming at reducing the level of trade distorting support that members could provide. In a presentation on Domestic Support in the context of WTO Negotiations on Agriculture at the Colloquium organised by the Indian Council for Research on International Economic Relations (ICRIER) here, Shri Nripendra Misra, Special Secretary, Ministry of Commerce and Industry, pointed out that while it was anticipated that the disciplines brought about by the Agreement on Agriculture would be beneficial for agricultural producers in the developing countries, the Agreement, in fact, had institutionalised the disparity between the developed and developing countries by allowing the high subsidising countries to maintain 80% of their base level aggregate measure of support (AMS) while prohibiting the low income countries from going beyond the minimum 10 per cent level of their value of agricultural production. The methodology of calculating the AMS also left much to be desired with AMS being computed on a product-specific basis while reduction commitments applied to the aggregate amount, thereby permitting over subsidisation of sensitive commodities to the detriment of exports from developing countries. Reform in agriculture must make a distinction between the welfare measures of subsistence economies and direct payment to farmers to sustain a level of farm income in the developed countries, he said, emphasising that "the quest for food and livelihood security for a large agrarian economy like India has ramifications beyond the straight line principles of market forces. Subsidised farm commodities from abroad could lead to marginalisation of the farm community".

Dr. Geoffrey Raby, Australia's Ambassador and Permanent Representative to the WTO in Geneva; Mrs. Puangrat Asavapisil, Deputy Director General, Department of Business Economics, Bangkok; and Mr. Masanori Hayashi, Director General, International Affairs Department, Ministry of Agriculture, Forestry & Fisheries, Tokyo made presentations on the issues of market access, export competition and non-trade concerns in the context of WTO Agreement on Agriculture, followed by discussions in which participants from number of countries including European Union (EU), Canada and others participated. Dr. Raby described export subsidies as the "most egregious distortion in the world agricultural market" and said that there was widespread international pressure to eliminate agricultural export subsidies from a wide range of countries including groupings such as the Cairns group, APEC, the Group of 77 developing countries, G-15 and countries negotiating the Free Trade Area of the Americas. Achieving elimination would be an important step towards finally ending the discrimination against agriculture in the GATT/WTO system, he said. Export subsidies in rich countries, he argued, undermined food security strategies of the developing countries by constraining domestic production through depressed world prices, unfair competition in foreign and local markets and volatility in world markets. He also cited case studies indicating the damage caused by export subsidies to the developing counties' agriculture.

The Sessions on Market Access, Domestic Support and Export Competition were chaired by Mr. Frank Wolter, Director, Agriculture & Commodities Division, WTO Secretariat, Geneva, Shri A. Hoda, Professor, ICRIER and former Deputy Director General of the WTO and Dr. Ashok Gulati, NABARD Professor, Institute of Economic Growth, Delhi, respectively. Negotiations on agriculture were resumed earlier this year as mandated in the WTO Agreement on Agriculture and the Colloquium is aimed at generating impulses that could carry the negotiations forward.

Shri Omar Abdullah, Minister of State for Commerce & Industry, has said that his Ministry, in association with the Sports Goods Export Promotion Council (SGEPC), is working out an aggressive promotional plan for boosting exports in the sports goods sector with the objective of enabling the industry to realise its full potential. Speaking at the Seminar on "Business Opportunities in Exports of Sports Goods" here today, Shri Abdullah pointed out that there was clear need for the industry to diversify its existing product range and go in for production of non-traditional items like ice-hockey accessories, hi-tech physical equipment, golf equipment and equipment for hunting, fishing, countering etc. "We also need to look at new markets and make concerted efforts to penetrate these markets", the Minister said. The Seminar was organised by the SGEPC in association with the Confederation of Indian Industry (CII).

Emphasising that infusion of fresh capital as well as upgradation of technology being used by the industry was required, Shri Abdullah said that perhaps forging joint ventures with manufacturers of developed countries was the answer to problem. It was clear, he said, that the industry was yet to come to terms with the changing market requirements and the concomitant changes in technology and products. Product development as well as market development were complementary to each other and as the industry explored new markets, it would realise the need for new products, he said.

Stating that the global market for sports goods and fitness equipment was expected to double over the next five years, the Minister said that India with its natural advantages in industries like leather, plastic, rubber, engineering, forging as well as sports goods could easily emerge as a major producer of sports goods in the coming times. Lauding the Council for the efforts it has been making to promote the sports goods sector, the Minister pointed out that there was an urgent need for greater participation of industry in the development of the sector. Assuring support of his Department for securing greater market access by leading trade delegations, participating in international fairs and conducting buyer-seller meets, the Minister informed that the Council on its part had identified a few thrust markets and thrust products to boost exports of sports goods.

The Minister said that he was aware of the problems being faced by the exporters of sports goods and said that he was particularly concerned about the smooth availability of the raw material to the sector from within as well as outside the country. The Minister also pointed out that there was need to change the import duty structure so that the import of raw materials became cheaper. Some of the duty concessions extended to industries like leather and textiles also needed to be extended to the sports goods industry, he said.

INDIA, AUSTRIA TO STEP UP BILATERAL TRADE; AGREEMENTS TO BE SIGNED IN HEALTH & RAILWAY SECTORS

AGREED MINUTES OF THE SEVENTH SESSION OF INDO-AUSTRIAN JOINT ECONOMIC COMMISSION SIGNED

India and Austria have identified ways and means of stepping up bilateral trade between the two countries and furthering cooperation in the health and railway sectors. Draft agreements in these sectors were under negotiation, which would soon be signed by the two sides. The Seventh session of the Indo-Austrian Joint Economic Commission concluded here today with the signing of Agreed Minutes by Shri L.V. Saptharishi, Additional Secretary, Department of Commerce, Ministry of Commerce & Industry on behalf of Government of India and Mr. Josef Mayer, Vice Minister, Ministry of Economic Affairs & Labour on behalf of Government of Austria. Besides exchanging instruments of ratification of the agreement for bilateral protection and promotion of investments, the two sides also identified ways and means of stepping up bilateral cooperation in trade, industry, energy, steel, tourism, civil aviation, agriculture, animal husbandry, telecommunications, environment and information technology.

The two sides also decided to establish a joint working group on tourism to identify areas of cooperation. Specific projects discussed in this area were development of a ski resort, Solan, Himachal Pradesh and improvement of Dal Lake in Jammu & Kashmir. Both sides evinced keen interest for cooperation in the information technology (IT) sector. A delegation from Austria would participate in IETF and India Soft Expo to be held in the months of January and February next year.

Replying to queries from media persons, Shri Saptharishi said that in the health sector, proposals for exchange of medical personnel in certain specific areas of interest to both sides and exchange of know-how relating to the running of primary and regional health centres were under consideration. On this, Mr. Mayer added that Austria was prepared to go in for cooperation in building up infrastructure in the health sector such as construction of hospitals and other areas. In the railway sector, technology transfer was under consideration for areas such as track improvement, railway coach building etc.

Bilateral trade between India and Austria is presently of the order of US $ 175 million and since 1991 more than 200 foreign collaboration and joint ventures between India and Austria have been approved. These cover sectors such as electrical equipment, paper & pulp, chemicals, industrial machinery, metallurgy and transportation.

INDO-AUSTRIAN BILATERAL TRADE TO BE GIVEN A FURTHER FILLIP SEVENTH SESSION OF INDO-AUSTRIAN JOINT ECONOMIC COMMISSION BEGINS

The seventh session of the Indo-Austrian Joint Economic Commission (JEC) got underway here today with both sides emphasising the need for giving a further fillip to the bilateral trade between the two countries and also strengthening the economic relationship between India and Austria. Shri L.V. Saptharishi, Additional Secretary, Department of Commerce, Ministry of Commerce & Industry who led the Indian delegation pointed out that there was great potential for bilateral trade as the two countries have had active business relations over the last five decades and the actual level of bilateral trade could be raised to a level much higher than the present. Shri Saptharishi also said that the present volume of FDI (foreign direct investment) inflows from Austria was quite low and urged the Austrian delegation to encourage more and more Austrian companies to invest in India. Mr. Josef Mayer, Vice Minister, Ministry of Economic Affairs & Labour led the Austrian delegation along with Mr. Herbert Traxl, Austrian Ambassador in New Delhi. Mr. Mayer, while identifying various sectors for economic cooperation between India and Austria, specifically mentioned sectors like railways, energy and tourism where he felt India could take advantage of Austria's expertise. In the civil aviation sector also, Mr. Mayer said that there was greater scope for cooperation and the number of flights between Austria and India could certainly be increased.

Besides discussing various issues relating to bilateral trade, some of the issues that are likely to be discussed during the Session are

market access issues -- India and Austrian; industrial cooperation including Austrian's investments in India; exchange of instruments of ratification of BIPA; status of DTAA agreement signed in 1999; and follow up on agreement concerning bilateral economic relations and economic, industrial, technical and technologicalcooperation signedin 1999. Mattersrelating to cooperation in sectors of mutual interest like energy, steel, railways, tourism, civil aviation, agriculture, animal husbandry, telecommunication, environment, information technology, electronics & computer software would also be discussed during the two-day deliberations.

OMAR ABDULLAH UNDERLINES NEED FOR ALTERNATIVE COMMERCIAL DISPUTE RESOLUTION MECHANISM PSUs/GOVERNMENT DEPARTMENTS RECOMMENDED TO USE SERVICES OF INDIAN COUNCIL OF ARBITRATION

While strongly recommending that public sector units (PSUs) and government departments should use the arbitration services of the Indian Council of Arbitration (ICA), Shri Omar Abdullah, Minister of State for Commerce & Industry has stressed theneed for an effective commercial dispute settlement mechanism. In his inaugural address of the 35 th Annual General Meeting of the ICA, organised by the Federation of Indian Chamber of Commerce & Industry (FICCI) here today, Shri Abdullah emphasised that commercial arbitration was necessary for settlement of disputes in various fields to ensure free and smooth flow of global trade. The fundamental requirements of a dispute settlement mechanism, which could take the form of conciliation, mediation or arbitration, were an improved arbitration law, arbitrators with high capability and integrity, and a fairly established arbitration culture, he said. The ICA is a body jointly set up at the initiative of the Ministry of Commerce & Industry, FICCI and some select professionals.

With a view to minimise the intervention of courts in the arbitration process, the Minister informed that the government had brought about a number of judicial reforms by adopting the UNCITRAL (United Nations Conference on International Trade Law) Model Law on International Commercial Arbitration in its statute. These steps, he said, had been taken with a view to not only simplify the law but also to meet the requirements of the competitive economy. The governmenthad also taken up the task of harmonisation andglobalisation of the legalframework relating to international trade and arbitration laws, he said. "With these initiatives India should become a good venue for arbitration in international business transactions", Shri Abdullah said. Complimenting the Council for the work being done, the Minister said that he was happy to note that the Council had been endeavouring to enter into many bilateral agreements for mutual cooperation with important foreign arbitral institutions for facilitating the use of international commercial arbitration and the smooth conduct of arbitration proceedings in India.

GOVERNMENT NOT TO ALLOW IMPORT OF SUBSTANDARD QUALITY GOODS : OMAR ABDULLAH ALL IMPORTS SUBJECT TO DOMESTIC LAWS, TECHNICAL SPECIFICATIONS ANDENVIRONMENTAL SAFETY NORMS

The government is determined that import of substandard goods shall not be permitted in the country. Towards that end, import of 131 products has been made subject to compliance of the mandatory Indian quality standards as applicable to domestic goods. For compliance of these requirements, all manufacturers/exporters of these products to India are required to register themselves to the Bureau of Indian Standards (BIS). The list of 131 products includes various food preservatives and additives, milk powder, infant milk food, certain kinds of cements, household and similar electrical appliances, gas cylinders and multi-purpose dry batteries.

Imports in India apart from being subject to compliance of the Export Import policy, are also subject to compliance of the provisions of any other law for the time being in force. Thus, all imported goods will have to comply withalldomesticlaws,rules,orders,regulations,technical specifications, environmental safety norms as applicable to domestically produced goods.

This information was given by Shri Omar Abdullah, Minister of State for Commerce and Industry, in a written reply in the Lok Sabha today.

India is not in favour of overloading the WTO agenda with wide-ranging new rounds of negotiations and is, in any case, opposed to adding of new non-trade issues on theWTO Agenda such as core labour standards, environmentalissues,coherent globalarchitecture, investmentand competition policy. India is, however, prepared for a few new items being taken up for negotiations, provided implementation issues arising from the Uruguay Round are also resolved to its satisfaction.

The Ministerial Meeting of the Asia-Pacific Economic Cooperation (APEC) was held on 12-13 November 2000 in Bandar Seri Bagwan, Brunei, Darussalam. While reaffirming their support to the launch of a new round of multilateral trade negotiations at the earliest opportunity, the APEC Joint Ministerial Statement states that they have agreed that the successful and expeditious launch of a new round requires an agenda that is balanced and sufficiently broad-based to respond to the interests and concerns of all WTO members. With this in mind, they have called on delegations in Geneva to agree on an agenda in 2001 and urged all WTO members to muster the political will and exercise flexibility. They have, inter-alia, commended the confidence building measures adopted in the WTO, including those on market access for the least developed economies and those addressing concerns over aspects of the implementation of WTO agreements. This was also reiterated in the APEC Economic Leaders’ Declaration on 16th November, 2000.

This information was given by Shri Omar Abdullah, Minister of State for Commerce and Industry, in a written reply in the Lok Sabha today.

The United Planters' Association of Southern India (UPASI) has urged the government to consider increasing customs duty on plantation items and to include rubber (CENEX -- Centrifuged Latex) for export to Russia under the rupee-rouble agreement in order to safeguard the interests of the plantation sector in the country, particularly the South Indian plantation industry. A delegation led by Shri D. P. Maheshwari, Chairman, Planters Association of Tamil Nadu, called on Shri Omar Abdullah, Minister of State for Commerce & Industry here yesterday along with Shri E.K. Joseph, President of UPASI; Shri Peter Mathias, Chairman, Karnataka Planters Association; and Shri G.J. Ancherial, Chairman, Association of Planters of Kerala and apprised the Minister of the problems facing the south Indian plantation industry due to the prevailing low prices of tea, coffee and rubber and the high social cost arising out of a very high wage structure which placed the plantation industry at a great disadvantage with the competing countries. Apart from hike in duty, they urged more controls on quality/prices/data, ban on import for re-export of all plantation commodities, removal of Section 17 of the Tea (Marketing) Control Order which made it mandatory for tea producers to route 75% of their bulk tea sales in the domestic market through auctions and reclassification of rubber as an agricultural commodity. The delegation also suggested that efforts be made for allocation of additional funds exclusively for import of plantation commodities including rubber by Russia under the rupee-rouble agreement.

BRAZIL KEEN TO SOURCE TEXTILES FROM INDIA VISIT OF BRAZILIAN DEPARTMENTAL STORES TEAM

As a part of the "Focus LAC" Programme of the Department of Commerce, a nine-member delegation of Brazilian Departmental Stores visited India from 10th and 18th November and held Buyer-Seller Meets (BSM) for sourcing different types of products including textiles and apparels. The delegation visited Mumbai, Chennai and Delhi and met a cross section of Indian companies involved inexport trade. In Mumbai, the BSM was coordinated by the Cotton Textiles Export Promotion Council (Texprocil), while in Chennai the BSM was coordinated by the Council for Leather Exports (CLE) and in Delhi by the Apparel Export Promotion Council (AEPC).

Feedback on visit of departmental stores' delegation from Brazil has been very positive and the visit has generated a lot of enthusiasm amongst the exporting community. Several exporters got confirmed orders during the BSMs. Consequent to the visit, trade is likely to go up particularly between India and Brazil and with the Latin American Countries (LAC) in general.

The BSMs received an overwhelming response from the Indian side. About 40 exporters participated in BSM at Mumbai, 47 at Chennai and more than 90 at Delhi. The Indian exporters appreciated the initiative on the part of the Government in inviting departmental stores' delegation from the LAC. This is the first time that a delegation of departmental stores has been invited to visit India.

After the successful visit of delegation from Brazil, Indian exporters indicated their keenness to join hands with the government in inviting more such delegations from the LAC, such as Mexico, Colombia, Venezuela and Chile.

Most of the important sectors are doing well in exports during the current year, according to the data on export performance of major commodities during April-September 2000-2001 available from the Directorate General of Commercial Intelligence & Statistics (DGCI&S). Exports of ores & minerals have recorded an increase of 49.6% in dollar terms; engineering goods 30%; electronic goods 27.3%; leather & leather manufactures 25.4%; chemicals & related products 21.4%; textiles 19.5%; marine products 16.8%; gems & jewellery 8.3%; and carpets a growth of 2.9% during April to September, 2000-2001 over the corresponding period of last year.

A number of policy measures were taken during the year to boost exports including sector-specific measures. Among the important steps taken to enhance export growth this year were electronic filing and online processing of applications for licence; grant of EPCG (Export Promotion Capital Goods) and advance licences on self-declaration basis; better neutralisation of indirect taxes on imports through easy to operate schemes like DEPB (Duty Entitlement Pass Book), DFRC (Duty-free Replenishment Certificate) etc. and reduction in transaction cost through decentralisation, simplification of procedures and various other measures which were enumerated in the Export & Import (Exim) Policy announced by Shri Murasoli Maran, Union Minister of Commerce and Industry on 31 March, 2000. Steps have also been taken to promote India's exports through multilateral and bilateral initiatives, identification of thrust sectors and focus regions. "Focus : LAC" campaign is a prime example of a focussed, region-specific approach which has led to an increase in India's exports to Latin America by over 40% during the current year. Downward trend in exports of some items such as plantations, agri and allied products,project goods and sportsgoods have been due to international factors, uneven supply of exportable surplus of items like agricultureandalliedproductsandinfrastructuralconstraints.

SEZs/EPZs/EOUs EXEMPTED FROM INDUSTRIAL LICENSING FOR PROJECTS MANUFACTURING ITEMS RESERVED FOR SSIs

As a part of government's endeavour to provide a simple operating regime for units in Special Economic Zones (SEZs), Export Processing Zones (EPZs) and Export Oriented Unites (EOUs), Department of Industrial Policy & Promotion has issued a notification on 4/12/2000 exempting them from the industrial licensing requirement for establishment of projects for manufacture of items reserved for small scale sector. This step is expected to facilitate expeditious clearance of proposals for setting up of units under SEZ, EPZ and EOU schemes at the level of Development Commissioner under the automatic route.

Export of marine products (or seafood) from India during April-September 2000 touched US $ 672.96 million as compared to US $ 530.30 million during the same period last year, reflecting a growth of 26.9 per cent. In rupee terms, exports amounted to Rs.3004.78 crore in the above mentioned period reflecting an increase of 32.4 per cent over the same period last year. In quantitative terms, exports touched 137547 million tonnes i.e., a growth of 12.1 per cent during this year.

Export of marine products is coordinated by MPEDA (Marine Products Export Development Authority) established in 1972. During the decade 1990-91 to 1999-2000, exports of marine products have grown at an annual average rate of 14 per cent in dollar terms and touched US $ 1189 million in 1999-2000.

The share of marine products in India's global exports is around 3.2 per cent.

The major overseas markets for Indian marine products are Japan, European Union (EU), USA and South-East Asia including China. In dollar terms, Japan accounts for a share of 44.4 per cent. The share of other major markets are

European Union 17.7 per cent, USA 15.2 per cent, South-East Asia including China 17.9 per cent and Middle-East 2.2 per cent. As a result of various steps taken by the government recently, exports to EU, USA and South-East Asia have shown healthy growth during 1999-2000. Exports to the EU amounted to US $ 164 million, reflecting a growth of 28.1 per cent over the previous year. Exports to USA increased by 22 per cent in 1999-2000, touching US $ 180 million. As regards South-East Asia, exports amounted to US $ 213 million, showing a growth of 16.4 per cent.

The Directorate General of Foreign Trade has issued Public Notice No.42 dated 1/12/2000 notifying the standard input-output norms for 55 new export items. Of these 55 new norms, 33 norms relate to the chemicals and allied products, 3 norms to engineering products, 8 norms to food products, 11 norms to plastic products groups. Besides, amendments/corrections in the existingnorms for36export productshave alsobeen notified.

Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, New Delhi, dated December 8, 2000

Representatives of the Association of Buying Agencies (ABA) have urged Shri Omar Abdullah, Minister of State for Commerce & Industry, that buying agents, who are playing a very important role in furthering exports of the country, should be given the status of exporters. In a meeting with the Minister here today, Ms. Rohini Suri, President, ABA, apprised him of the various constraints that the buying agents were operating under and sought his assistance in fulfilling their 3-point agenda which was submitted to Shri Abdullah. The agenda includes exempting income of buying agents from income tax so that they can spare resources for product development and marketing; making available to buying agents grant for travel under the Market Development Assistance (MDA) Scheme; and recognising the buying agents as service exporters in the next Exim Policy. Acknowledging that the buying agents were playing an invaluable role in boosting the country's exports, Shri Abdullah was fully appreciative of their demands and assured the delegation that his Ministry would take up each of the issues. The Minister, however, asked the Association to build up their visibility so as to spread greater awareness about the substantive contribution they were making to the country's export basket.

Stating that the export growth had been quite good in the current fiscal, Shri Abdullah said that the Ministry was looking forward to a sustainable growth in the coming years and in that context, the role of the buying agents would be crucial. The Ministry on its part, he said, had taken a number of measures to step up exports from the country such as, reducing transaction costs by way of increased computerisation of DGFT offices/customs, giving a boost to e-commerce activities and exploring possibilities of signing free trade agreements with the countries which would be beneficial to India.

EXPORT PROMOTION COUNCILS URGED TO TAP IT AND INTENSIFY PROMOTIONAL ACTIVITIES FOR ACCELERATING EXPORTS

Export Promotion Councils (EPCs) must be proactive and innovative to keep up with the recent changes in the global trading environment particularly the IT revolution and step up promotional activities with pioneering marketing approaches in order to further accelerate India's exports. Speaking at the inaugural session of the 42nd Annual General Meeting (AGM) and the export awards distribution ceremony of CAPEXIL (Chemicals & Allied Products Export Promotion Council), here today, Shri Omar Abdullah, Minister of State for Commerce & Industry, said that the advent of e-commerce and other such tools had revolutionalised international trading and welcomed CAPEXIL's initiative to come up with B-to-B portal, which he hoped would be useful for all the product sectors covered by CAPEXIL such as minerals, glass & glassware, rubber products, ceramic and pottery ware and books and publications. The government on its part, Shri Abdullah said, was making continuous efforts to deregulate and simplify procedures in the Exim Policy and create a genuinely supportive environment for the exporting community. The Department of Commerce has already started the process of consultations with the Industry for bringing further changes in the Exim Policy for 2001-2002, he said.

The Minister urged the CAPEXIL as also all the other Councils to prepare the mid-term export strategy along with a concrete action plan for the coming 5 to 6 years in which they should identify thrust countries and thrust markets and concentrate on them so as to not only sustain the existing markets but also explore the new and emerging ones. In order to gain global acceptance, there was a need to build up a favourable image for the Made in India label, Shri Abdullah said. Complimenting the award winners, the Minister also stressed the need to be conscious about environmental matters such as waste management as this had the dual benefit of contributing to sustainable development and productivity as well as reduction of costs. "Environmental parameters must not be ignored for the sake of accelerated profits… Technology upgradation for the development of eco-friendly processes and products is the need of the moment to make our products economically viable", he said.

Shri Abdullah awarded the Top CAPEXIL award to MMTC -- MMTC's award for the ninth time in a row for exports in minerals and ores. About one-third of India's total export of minerals and ores is handled by MMTC. Shri S.D. Kapoor, CMD, MMTC received the award on behalf of MMTC. The most notable feature of MMTC's mineral activities for the financial year 1999-2000 was a growth of 60% in exports of iron ore to China. Financial year 2000-2001 has also witnessed acceleration of mineral exports and a growth of 40% has been achieved in the first eight months of the year. MMTC Limited, India's first Super Star Trading House, is a major global player in the minerals trade and one of the largest exporters of India with extensive network of comprehensive infrastructural facilities and expertise to handle mineral operations right from sourcing quality products to delivering the same to the ultimate buyers.

INDIA'S TRADE WITH CHINA TO CROSS $ 2 BILLION MARK IN 2000-2001 OMAR ABDULLAH INAUGURATES CHINESE ENGINEERING AND COMMODITIES FAIR

India's trade with China is definitely going to cross the US $ 2 billion mark during 2000-2001 as per the present trends, Shri Omar Abdullah, Minister of State for Commerce & Industry, said here today while inaugurating the China Engineering & Commodities Fair. Trade between India and China during 1999-2000 was of the order of US $ 1.841 billion. The Minister said that given the potential of the two countries, bilateral trade could reach US $ 5 billion within the next couple of years and stressed that this Fair would help in providing a platform for developing markets for each other's products. The need for further promoting economic, commercial, scientific & technical cooperation between India and China was highlighted during the Sixth Session of India-China Joint Group on Economic Relations, Trade, Science & Technology held in Beijing in February 2000 when the Indian delegation was led by Shri Murasoli Maran, Union Minister of Commerce & Industry, Shri Abdullah pointed out and noted that the China Engineering & Commodities Fair was another historic landmark as it also marked the 50th Anniversary of the establishment of diplomatic relations between the two countries. "India has now carved out a place among the top twenty trading partners of China and should work towards maintaining and improving the present level of trade and investment cooperation in the form of joint ventures", the Minister added.

With the entry of China into the World Trade Organisation (WTO), the Minister said that India visualised a much more stable and competitive trade environment in the continent. In 1998, when a large part of Asia was experiencing recession, India and China were the two economies which showed positive growth and presently also both India and China were on the growth track as a result of which the vast opportunities for cooperation could be easily tapped, Shri Abdullah observed, adding that China -- the most rapidly developing economy in Asia -- had a very significant role to play in the context of the 21st century being widely seen as the Asian era. "India and China are two ancient civilisations, neighbours and developing countries having large populations and vast land masses. We, both the countries, have huge pools of scientific and technical personnel. Therefore, the potential for trade, commerce and economic cooperation between our two nations is great. The contact between our two countries has witnessed periods of close and active trade as also periods of diminished trade. This has deprived each other of information and knowledge between our nations. Due to this reason, commercial and economic interaction between the two countries has not fully realised the potential that exists", he commented.

POLICY INITIATIVES RESULT IN SURGE IN INDIA'S EXPORTS TO LATIN AMERICA FOCUS LAC PROGRAMME EXTENDED TILL MARCH 2003

The efforts of the government to enhance trade with Latin America have resulted in a sharp increase in India's exports to the region, according to an assessment of the Ministry of Commerce & Industry with the first quarter of 2000-2001 witnessing a 42 per cent growth in India's exports to Latin America. The rate of growth in exports to the Latin American Countries (LAC) is significant vis-à-vis important traditional trading partners, resulting from governmental initiatives and business enthusiasm. The Focus

LAC programme which has been reviewed and extended upto March, 2003 has paid rich dividends. Special package of incentives proved very vital in developing commercial linkages and in helping trade from both India and Latin America. Interaction at the higher levels have led to the growing interest and increase in quantum of trade. The visits of high level delegations to and from LAC such as the visit of Minister of State for Commerce and Industry Shri Omar Abdullah to Brazil, Argentina & Chile, CII's second trade delegation to Mexico, Brazil & Colombia and the visit to India of the Health Minister of Brazil, Governor of Santa Catarina, Brazil and a Departmental Stores delegation from Brazil have accelerated trade relations with Latin America.

India's trade with Latin America last year reflects this marked difference. Indian exports to Latin America in 1998-99 were US $ 611.31 million which rose to US $ 693.75 million in 1999-2000. The imports from Latin America also went up from US $ 730.69 million in 1998-99 to US $ 893.64 million in 1999-2000. The percentage increase in export was 13.49 and in import, it was 18.19.

The important items of India's exports to this region are Drugs, Pharmaceuticals & Fine chemicals, ready made garments (RMG) Cotton/manmade and accessories, Cotton/manmade yarn, fabrics, made ups etc, Transport equipment, Manufactures of metals, Inorganic, Organic & Agro chemicals, Machinery and instruments, Dyes, intermediates & Coal Tar chemicals, Rubber Manufactured products, Plastic & Linoleum products, Gems & Jewellery, Primary & semi-finished Iron & Steel, Handicrafts etc.

India's major imports from the LAC region are Vegetable oils, Sugar, Metalliferous Ores & Metal scrap, Fertilisers manufactured, Gold & Silver, Machinery, Iron & Steel, Wood and Wood products, Leather, Electronic goods, Organic/Inorganic chemicals, Non-ferrous metals, Crude minerals, Pearls, Precious & semiprecious stones, Pulp & Paper waste, Raw wool etc.

The trade is expected to go up further to touch a new high due to various policy initiatives taken by the government such as assistance for opening of offices, warehouses; facility for translation into Spanish/ Portuguese and vice versa; special language classes through IIFT; assistance for participation in sales cum study tours/BSMs delegations and participation in fairs in LAC; provision for inviting delegations; trade analysis of 12 major countries in LAC by NCTI; study by IIFT of Mercosur countries; preparation of CD Rom by NCTI; sectors specific studies; institution of export awards for LAC; proposal for setting up of a private sector marketing agency; proposal for creation of a corpus $ 500 with Exim Bank for lending to exporters at LIBOR, FTA/PTA with major countries in LAC; trade MOUs with certain LAC countries; mounting of high level delegations; holding of CRs' conference; organising Made in India shows in LAC region, inviting Health Ministers, Governors, Departmental stores delegations, extending Lines of Credit by Exim Bank and upgradation of ECGC (Export Credit and Guarantee Corporation) ratings for grant of commercial cover etc.

INDIA'S EXPORTS LIKELY TO EXCEED TARGET IN 2000-2001 OMAR ABDULLAH ADDRESSES MEETING OF CHAIRMEN OF EXPORT PROMOTION COUNCILS AND COMMODITY BOARDS

Shri Omar Abdullah, Minister of State for Commerce & Industry, has indicated that India's exports during the current financial year 2000-2001 are likely to exceed the target given the fact that export trends up to October 2000 have been very encouraging and the growth rate has been consistently higher than the target of 18 per cent fixed for the year. Speaking at a meeting with Chairmen of the Export Promotion Councils (EPCs) and Commodity Boards, organised by the Federation of Indian Export Organisations (FIEO), here today, Shri Abdullah observed that "we are reaching a point on the export graph where we can accelerate and take off… However, there is no reason for us to be complacent about our export performance. We are aware of the great strides that countries in the East and the South-East Asian regions have made in achieving sustained levels of export-led growth. We have to strive to do as well as them, if not decidedly better". He emphasised that India would have to intensify its efforts for becoming more and more competitive in the international markets not only in terms of price but also quality and assured that his Ministry would do its best to assist the exporting community in achieving the common goals. His message to the exporters was to think big and create a vision which should involve systematic analysis and brainstorming.

Shri Abdullah urged the EPCs to finalise the medium term export strategy for the next five years (2001-2006) based on advance and detailed planning for promotion of exports from India. The Minister also said that the government had circulated Model Articles of Association for adoption by EPCs in order to rationalise and streamline their working and make them more effective instruments for achieving higher export growth in view of the changed global marketing scenario and urged them to adopt these Articles of Association at the earliest, in case they had not already done so. Guidelines had also been issued, Shri Abdullah said, for direct participation of the EPCs without necessary involving the India Trade Promotion Organisation (ITPO) for product specific trade fairs in an attempt at further liberalisation of procedures. EPCs should complement each other's efforts by regular experience sharing about markets, potential and success stories which would help bring down costs and increase export competitiveness. Shri Abdullah also saw a definite role for the EPCs in promoting e-commerce aggressively, particularly B-to-B transactions and stressed that the EPCs should supplement the government's efforts in this direction by coming forward to invest in both hardware and software.

Shri Navratan Samdria, President, FIEO, reiterated that the export growth trend this year had been satisfactory with the first half of the fiscal registering impressive growth and promising to close with a growth figure much higher than the target of 18 per cent. He suggested a four-point strategy to further accelerate exports by (a) focussing on specific issues on infrastructure i.e., ports, electricity, railways, road transport etc. as well as banking and labour; (b) formulating consumer marketing strategies for exports; (c) looking at all 100 per cent manufacturers-exporters as EOUs and extending to them the same autonomy and facilities; and (d) recast of the Exim Policy to make it the basic document for foreign trade so that exporters were not made to consult different documents or departments for different aspects of export activity and the Exim Policy document sufficed to give information and directives on all related issues impacting on exports like finance, labour, infrastructure, logistics, sales tax etc.

India proposes to seek enhanced market access opportunities for its farmers by demanding a substantial reduction in the tariffs, elimination of export subsidies and substantial reduction in domestic support by the developed countries while also demanding sufficient flexibility under Agreement to Agriculture to take care of its food security and livelihood concerns at the WTO negotiations on Agriculture, Shri Omar Abdullah, Minister of State for Commerce and Industry, said in a written reply in the Rajya Sabha today. The mandated negotiations under the WTO Agreement on Agriculture are being conducted through the Special Sessions of the WTO Committee on Agriculture. The next special session of the WTO Committee on Agriculture is scheduled in February 2001, wherein the various proposals submitted by the member countries are likely to come up for discussion.

India has co-sponsored its first proposal of "Market Access", along with 11 other developing countries in the special session of the WTO Committee on Agriculture held in September 2000. In this paper, trade distortions prevalent in international markets and the consequent hindrance to the exports from the developing countries have been highlighted. It has been proposed that developed countries should effect substantial reductions in their tariffs and eliminate tariff peaks and tariff escalations. It has also been demanded that the administration of tariff rate quotas (TRQs) should be made transparent and equitable for all trading partners with regular enhancement of TRQs to improve market access for all developing countries. Other proposals include elimination of all forms of trade distorting export subsidies and substantial reductions in the domestic support provided by developed countries; prohibition of dumping; and effecting suitable modifications in the provisions of the Agreement on Sanitary and Phytosanitary Measures, which inhibit the ability of developing countries to export agricultural products.

Under the Section 301 provisions of the Trade Act of 1974, as amended the USTR identifies countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to US persons that rely upon intellectual property protection. Although the US trade law recognises only the category of "priority foreign country", the USTR has been following the practice of placing countries on three different categories called the ‘Priority Foreign Country’, ‘Priority Watch List’, and ‘Watch List’, depending on the perception of inadequacy of protection given to US intellectual property rights. The US has placed India on the priority watch list under this year’s review of Special 301 provisions of the Trade Act of 1974, as amended. India is among the 16 trading partners of US, placed on the priority watch list. The others are Argentina, the Dominican Republic, Egypt, the European Union, Greece, Guatemala, Israel, Italy, Korea, Malaysia, Peru, Poland, Russia, Turkey and Ukraine. No legal consequences follow from placing of any country either in the Watch List or the priority watch list. The government has, however, made it clear that there is no reason to identify India in any category under the Special 301 provisions. This was indicated by Shri Omar Abdullah, Minister of State for Commerce and Industry, in a written reply in the Rajya Sabha today.

PROVISIONS TO PROTECT BIO-RESOURCES AND TRADITIONAL KNOWLEDGE INCORPORATED IN PATENT AMENDMENTS BILL

In order to protect the bio-resources and traditional knowledge of India, several measures have been taken by the government, which include provisions being incorporated in the Patents (Second Amendment) Bill 1999 making disclosure of source and geographical origin of the biological material used in the invention mandatory while applying for patents in India. Provisions have also been incorporated to include the non-disclosure or wrongful disclosure of the same as grounds for opposition and for revocation of the patent, if already granted. Provisions have also been incorporated in the Patents (Second Amendment) Bill 1999 to include anticipation of invention by available local knowledge, including oral knowledge, as one of the grounds for opposition as also revocation of the patent. This was disclosed by Shri Omar Abdullah, Minister of State for Commerce & Industry, while inaugurating a Seminar on "Protection of India's Intellectual Wealth in the New Millennium" organised by the National Research Development Corporation (NRDC) here on Saturday. Apart from this, Shri Abdullah said that the government had also initiated an exercise to develop a digital database of traditional knowledge in the field of medicinal plants so as to avoid patenting of products based on such knowledge. "Efforts are also being made in various inter-governmental fora to create an international system for such protection", the Minister said. Underlining the need to learn how best to protect indigenous inventions not only in India but also abroad even while making these revolutionary changes in Patent Laws, Shri Abdullah urged the foreign experts from the European Patent Office and eminent patent attorneys from USA and Germany who participated in the seminar to give an insight into the practical nuances of obtaining intellectual property rights (IPRs) in the developed countries.

India -- one of the 12 mega bio-diversities of the world -- accounts for 7 to 8 per cent of the world's recorded species despite having only 2.4% of the land area. And India has a rich tradition of using this wealth in a sustainable manner through various traditional systems of medicines, such as ayurveda, unani and siddha. However, Shri Abdullah said that there was a spurt in bio-piracy today using India's traditional knowledge without rewarding the traditional knowledge holders and cited the revocation of the turmeric patent in USA and the neem patent in Europe as examples of the immense time, effort and money required to revoke such patents based on bio-piracy. "Clearly, revocations are not an answer for the problems of bio-piracy. Efforts at both national and international level are required to protect our traditional knowledge", the Minister said.

Iraq has been importing tea under Food-for-oil programme in accordance with the procedure prescribed by UN. However, no quantity has been fixed to be imported from India as the process is based on selection through tenders. As per information received from our Indian Embassy in Baghdad, Indian companies have been awarded contracts for supply of tea to Iraq for a total quantity of 6700 tons under phase 7 of the food-for oil programme.

A number of steps have been undertaken to enhance the share of Indian tea exports under this programme. These include greater participation in the Baghdad International Trade Fair, step up Indian exports through the mechanism of Indo-Iraq Joint Commission Meetings, contact through visit of Indian business delegations to Iraq etc.

This was indicated by Shri Omar Abdullah, Minister of State for Commerce and Industry, in a written reply in the Lok Sabha today.

In order to arrest the decline in prices of tea, the government through the Tea Board has taken various steps which include implementation of a scheme through the Tea Board with effect from 1/5/2000 wherein subsidy is provided to the small growers of tea (holding upto 10.12 hectares of tea plantation) for an amount equal to the shortfall between the auction price and Rs.55 per kg. subject to a maximum of Rs.8 per kg; launch of a Quality upgradation Programme in the Nilgris district of Tamil Nadu for improving quality of tea manufactured by small growers; increase in basic customs duty on tea from 15% to 35%, ban on sale of tea in Domestic Tariff Area by 100% Export Oriented Units (EOUs) and units in Export Processing Zones (EPZs). This was stated by Shri Omar Abdullah, Minister of State for Commerce and Industry, in a written reply in the Lok Sabha today.

As regards coffee, the Government of India through the Coffee Board, besides operating several plan schemes and development activities aimed at intensive cultivation, replanting, quality improvement and water augmentation, has also been providing necessary support in the form of agricultural research, extension, arrangement of credit and finance and other necessary backup support like supply of seed for planting purposes, etc. Further, thrust is being given for increasing productivity of coffee particularly in the small growers sector and improving quality of the product. The Board is also encouraging the large growers to produce specialty coffees, which fetch attractive premiums in developed countries like USA and European union. Although, consequent upon liberalisation of coffee trade in 1996, the Coffee Board is not longer directly involved in the marketing activities and the prices are determined by the market forces of demand and supply, Government of India through Coffee Board closely monitors the market price situation and if the situation warrants, will take suitable ameliorative measures so as to safeguard the interests of the coffee growers, Shri Abdullah said.

The average all India auction prices of tea during 2000 for the period January to October declined to a level of Rs.62.44 per kg. as against Rs.72.44 per kg. over the corresponding period of 1999. Regarding coffee, the international prices have fallen due to over production and resultant surplus supply. Since nearly 80% of the coffee produced in India is exported, fluctuations in international price have resulted in low realisations of prices. However, the domestic prices of both the varieties of the coffee are at present higher than the international prices.

Imports are being closely monitored and the government is determined to ensure through the appropriate use of the above mechanisms that imports do not cause any serious injury to the domestic producers, Shri Omar Abdullah, Minister of State for Commerce & Industry, said in a written reply in the Lok Sabha today. Some of the recent measures towards that end are as follows

i. Import duties on a number of items have been increased, for example,the duty on arecanut has been raised from 35% to 100%, on poultryproducts from 35% to 100%, on wheat from 0% to 50%, on skimmed milkpowder from 0% to 60%, on apple from 35 % to 50% and on rice from 0% to80%.

ii. Suo-moto anti-dumping investigations have been initiated in respect ofimport of battery cells, battery operated toys and sports shoes fromChina.

iii. Import of all packaged commodities have been made subject to complianceof all the conditions of the Standards of Weights & Measures (PackagedCommodity) Order 1977, as applicable on domestic producers.

iv. Import of 131 products has been made subject to compliance of themandatory Indian quality standards as applicable to domestic goods. Forcompliance of this requirement all manufacturers/exporters of theseproducts to India shall be required to register themselves with Bureauof Indian Standards (BIS). The list of 131 products includes variousfood preservatives and additives, milk powder, infant milk food,certain kinds of cement, household and similar electrical appliances,gas cylinders and multipurpose dry batteries.

As per Article XI of GATT, maintenance of Quantitative Restrictions on imports is not permitted. However, to provide protection to the domestic producers, the government can, if the situation so warrants, utilise the mechanism of raising the applied tariffs within the bound rates, if such a gap exists and take measures such as anti-dumping action, imposition of countervailing duties and safeguard actions which are permissible under the WTO agreements.

Exports during April-October, 2000-2001 are valued at US $ 25013.99 million which is 20.51% higher than the level of US $ 20757.15 million during April-October, 1999-2000. In rupee terms, the exports were Rs.112646.42 crore, which is 25.59% higher than the value of exports during April- October, 1999-2000.Exports during October, 2000 are valued at US $ 3685.22 million which is 16.81% higher than the level of US $ 3154.91 million in October, 1999. In rupee terms the exports were Rs.17078.98 crore, which is 24.59% higher than the value of exports during October,1999. Imports during April-October, 2000-2001 are valued at US $ 30270.27 million representing a growth of 14.00% over the level of imports valued at US $ 26552.71 million in April- October, 1999-2000.

Oil imports during April-October, 2000-2001 are valued at US $ 9732.92 million which is 84.51% higher than oil imports valued at US $ 5274.88 million in the corresponding period last year. Non-oil imports during April-October, 2000-2001 are estimated at US $ 20537.35 million which is 3.48% lower than the level of such imports valued at US $ 21277.83 million in April- October, 1999-2000. Imports during October, 2000 are valued at US $4258.13 million which is 9.22% higher than the level of US $ 3898.59 million in October , 1999. In Rupee terms the imports increased by 16.50%.

The trade deficit for April-October, 2000-2001 is estimated at US $ 5256.28 million which is lower than the deficit at US $ 5795.56 million during April- October, 1999-2000.

Tables giving details of exports, imports and trade balance, according to the provisional estimates of Directorate General of Commercial Intelligence & Statistics (DGCI&S), are attached.

	`October`	`April-October`
`EXPORTS`
`1999-2000`	`13707.87`	`89697.27`
`2000-2001`	`17078.98`	`112646.42`

`%Grw 2000-2001/1999-2000`	`24.59`	`25.59`

`IMPORTS`
`1999-2000`	`16939.10`	`114745.56`
`2000-2001`	`19734.09`	`136129.17`

`%Grw 2000-2001/1999-2000`	`16.50`	`18.64`

`TRADE BALANCE`
`1999-2000`	`-3231.23`	`-25048.29`
`2000-2001`	`-2655.11`	`-23482.75`

	`October`	`April-October`
`EXPORTS`
`1999-2000`	`3154.91`	`20757.15`
`2000-2001`	`3685.22`	`25013.99`

`%Grw 2000-2001/99-2000`	`16.81`	`20.51`

`IMPORTS`
`1999-2000`	`3898.59`	`26552.71`
`2000-2001`	`4258.13`	`30270.27`

`%Grw 2000-2001/99-2000`	`9.22`	`14.00`

`TRADE BALANCE`
`1999-2000`	`-743.68`	`-5795.56`
`2000-20001`	`-572.91`	`-5256.28`