The Hindustan Times

6^th April 2006

Trade Policy has paid rich dividends: Kamal Nath

 Union Commerce and Industry Minister Kamal Nath has claimed that the foreign trade policy initiated by the UPA government has reaped rich dividends and has recorded a 26 percent growth in exports annually during last two years.

             Speaking at the convocation of Indian Institute of Foreign Trade (IIFT), the minister revealed that the merchandise exports have gone up to $100 billion from $63 million in 2004.  The statement has come two days ahead of the scheduled Foreign Trade Policy announcement to be made this Friday.

             Kamal Nath also hinted that the UPA Government will use the trade policy instruments to generate incremental employment and bring about rural prosperity.

             Kamal Nath stated, “exploiting the export potential and generating employment would remain the aim of the policy.” 

             The minister stated, “Our total economic engagement with the world today, including imports, tops $350 billion that reflects our growing significance in international trade”.

             “Our tariffs are being aligned with Asean levels, FDI regime is increasingly liberal and our domestic laws are TRIPS compliant, “Kamal Nath stated.

             He asked the developed countries of lift the non-tariff barriers and other regulations being set up increasingly to block access for goods and services from developing economies. 

             Kamal Nath maintained that with the right blend of information technology, biotech and pharma manufacturing.  India could be the key destination for the growing knowledge process outsourcing.

             Besides, an increase in exports, the last two years witnessed a dramatic increase in the imports as well.  The increase in imports can be largely attributed to the growing oil prices.

             Excluding the essential oil imports, the country’s exports still rule over the imports.  However, imports are considered to be essential as they represent the needs and inputs of a thriving economy.