EXPORTS CONTINUE ON A HIGH GROWTH
TRAJECTORY
IMPORTS
OF SENSITIVE ITEMS, BARRING OIL, SHOW NEGATIVE GROWTH
INDIA
PLAYS PROACTIVE ROLE IN WTO
ANNUAL
REPORT OF THE DEPARTMENT OF COMMERCE: 2002-03
India’s exports
have been on a high growth trajectory throughout the year 2002.
In fact, the country’s export growth during the first half of
the fiscal (April-September 2002) touched 19%. What is particularly
noteworthy is that against the export target of 12% set for the
year, the growth of India’s exports during the 9 months (April-December,
2002) has been over 20% (in dollar terms). Thus, the double-digit
export growth momentum was sustained throughout them year, according
to the Annual Report 2002-03 of the Department of Commerce which
was released here today.
During April to
September 2002-03, Asia and Oceania accounted for the highest
growth in India’s export at 29.76% over the corresponding period
of the previous year followed by America (29.50%), West Europe
(18.14%) and Africa (14.94%). Exports to East Europe grew
modestly (6.76%) during April-September, 2002-03. The share of
14 major countries of destinations for India’s exports remained
virtually unchanged at 62.8% during the period under review as
compared to the previous year. The 14 major countries of destination
for India’s exports (along with their percentage share in India’s
total exports indicated in brackets) were: USA (20.8%); UAE (6.27%);
UK (4.91%); Hong Kong (3.96%); Germany (3.95%); Japan (3.82%);
Singapore (3.23%); Belgium (3.09%); China (2.73%); Italy (2.53%);
France (1.99%); Netherlands (1.91%); Bangladesh (1.84%); and Saudi
Arabia (1.80%).
Regarding import
of sensitive items, the Report indicates that, barring import
of crude palm oil, import of all other sensitive items showed
a negative growth during the period April-November 2002. The
total import of 300 sensitive tariff lines for the period April-November
2002 has been Rs. 8,605 crore against Rs. 7,663 crore for the
corresponding period of last year, thereby showing a growth of
12%. "However, this growth is almost entirely due to significant
increase in the import of crude palm oil, but for which import
of all other sensitive items shows negative growth", the Report
says.
During the first
six months of 2002-03, India’s imports from the Asia and Oceania
region was valued at Rs. 38,871 crore which was 10.44% higher
over the imports in the same period last year. Substantial imports
were also accounted for by regions like West Europe (Rs. 34,580
crore), America (Rs. 13,047 crore) and Africa (Rs. 7,552 crore).
In the post-Doha
developments, India continued to play a proactive role by taking
active part in all negotiations for which modalities were to be
firmed up before March 31, 2003 and final negotiations to be sealed
by 2005. On the General Agreement on Trade in Services
(GATS), India continues to focus on seeking enhanced market access
for developing countries in future negotiations. India has
time and again urged that the Work Programme on Implementation
Issues should be given the highest priority. Greater attention
needs to be devoted to issues about Sanitary & Phyto-sanitary
standards and technical barriers to trade so as to fully realise
gains in agricultural trade liberalisation. India also stuck
to its contention that the Trade-related Intellectual Property
Rights (TRIPs) agenda should reflect the concerns of developing
world. India’s viewpoints on all these issues were forcefully
articulated at the mini-ministerial held in Sydney, Australia,
in the middle of November, 2002 and in Tokyo, Japan in February
2003. The next Ministerial Conference is scheduled to be held
in Cancun (Mexico) in September 2003.
India submitted
initial negotiating proposals on the Agreement on Agriculture
(AoA) during 2001, covering all the three pillars in the negotiations,
namely, market access, domestic support and export competition.
This also included India’s stand on special & differential
and concerns regarding food and livelihood security and rural
development. Non-trade concerns will also be taken into account
in the negotiations as provided for in the AoA. During 2002,
the government held wide-ranging consultations with stakeholders
in agriculture including State/UT governments, representatives
of political parties, farmers’ associations, academic and research
institutions and eminent scholars. The modalities for further
commitments were required to be established by 31 March 2003,
and the negotiations are required to be concluded by 1 January,
2005.
In consultation with
the administrative Ministries and stakeholders in the concerned
sectors, India has submitted request list to a number of Member
countries in service sectors of interest to India viz., Architectural
Services, Audi-Visual Services, computer & related Services,
Health Services, Maritime Services and Tourism Services.
The review of the
Agreement on Trade Related Investment Measures (TRIMs) is underway.
The only specific proposal received by the Council for Trade in
Goods is from India and Brazil. The joint paper by India and Brazil,
which has also been taken up as part of the implementation issues,
has proposed amendment to Article 4 of the TRIMs Agreement as
part of the review process to enable developing countries to deviate
from certain provisions of the TRIMs.
India’s Third
Trade Policy review took place on 19th & 21st
June, 2002. The previous review had taken place in 1998. During
the review, the WTO members commended India for its strong
economic performance over the past decade with growth at an average
of 6% a year and a reduction in poverty. They noted that this
resulted, in great part, from continued economic reform, including
trade liberalisation, lower government involvement in economy
and liberalisation of key services sectors. They further noted
that trade reforms had concentrated on tariff reforms and the
removal of quantitative restrictions on imports.
Under India Customs
Tariff Act, 1975, a new section 8-B was introduced by Finance
Act, 1997, giving power to Central Government to impose safeguard
duty. The duty chargeable under this Section is in addition
to any other duty imposed under the Act or under any other law
for the time being in force, the Report says.
