Exim Policy to give way to Foreign Trade Policy

Policy to clearly state UPA government's objectives and provide policy stability.

The United Progressive Alliance government has decided to terminate the five-year Exim Policy, 2002-07, after two years of its existence, and replace it with a Foreign Trade Policy for a five-year term beginning this fiscal year.

"The government has been elected for a five-year term, and it wants to make the policy co-terminus with its term. This will clearly state the UPA government's objectives and provide policy stability," commerce department officials said.

Commerce and Industry Minister Kamal Nath will unveil the Foreign Trade Policy in Parliament on August 31.

Officials said the commerce department had rewritten the policy document and some new sections might be added.

Besides laying down the rules on exports and imports, the government also proposes to encompass the "focus" initiatives.

Among the new initiatives being announced in the policy is a new focus initiative "" called Focus Asean Plus 2. This new focus programme will include the Asean member countries and New Zealand and Australia.

This will be the fourth focus programme after those for South America, Commonwealth of Independent States and Africa.

The budgetary allocation for the Focus Africa and Focus CIS initiatives are also being raised to Rs 3 crore from Rs 2 crore and Rs 40 lakh, respectively.

Increasing exports to the Asean region is among the priority areas for the government this fiscal year. The government has set a 16 per cent export growth target for 2004-05.