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India's share in international trade would cross the target of one per cent much ahead of scheduled 2007, Director General of Foreign Trade Lalit Mansingh said on Friday.
Mansingh said that besides introducing DEPB (Duty Entitlement Pass Book Scheme) certificates in demat form to bring down cost of transaction, the government was also planning to delink export of foodgrains from Food Corporation of India in order to increase export of foodgrains for achieving the target.
"We had to grow at over 12 per cent annually in dollar terms to reach the target of one per cent share in international trade as per 2002-07 export policy target and we are much ahead of that," Mansingh said at an interactive session organised by Indian Chamber of Commerce in Kolkata.
He said last fiscal the country had started with a growth of 22 per cent in dollar terms and this fiscal, till February, despite problems like rupee appreciation, crisis in the Middle-East and other problems, the growth rate was pegged at 14 per cent.
"By the end of February this year, we were 14 per cent above last fiscal's figure despite the fact that 2002-03 was very successful year," Mansingh said, adding, "We are also confident to achieve the target of one per cent of global trade much ahead of schedule."
The DGFT, however, said the country now required to benchmark itself with its main competitor China, which had a share of three per cent in global trade on standalone basis and seven per cent if taken together with Hong Kong. The concept of India Inc has to be built and every body, from state governments, to the Centre, to industries to labours has to play a role in it.
Mansingh, however, said to achieve the target the industry would have to become more competitive. "There are no quantitative restrictions in Exim Policy and so if you are not competitive, you will not survive. Anyone thinking that increasing exports is the responsibility of Centre is living in a fools paradise."
There has to be a mandatory quality control as there was only 180 products on which there is some kind of protection leaving a vast area to improve upon. "Time has come when every single sector will have to take hard decisions."
Commenting on the problems faced by exporters following rupee appreciation, Mansingh said it was not in their domain. "There is very little government can do."
Commenting on the subject of reduction of farm subsidies by the US and Europe, Mansingh said, "We need not wait for European Union and USA to reduce farm subsidies. We are still competitive and we can become a major exporter of agro products for which we have to create facilities and only then the benefits would reach the rural sector."