Major Boost For Service Exports Likely In Exim Policy

Service exports, including tourism, legal services, medical services, health consultancy and software, are likely to receive significant benefits in the new Export-Import (Exim) policy for April 1997-2002.

The director-general of foreign trade, S B Mahapatra, said it was possible that these sectors would be allowed a higher level of duty-free imports.

For example, the tourism industry may be allowed to raise its duty-free imports from the current level of 10 per cent of foreign exchange earnings to 15 per cent. The proposals are part of the government's efforts to raise exports in the services sector.

The current Exim policy extends from April 1, 1992 to March 31, 1997.

 

A committee has been set up under the chairmanship of the commerce secretary to deliberate on the issues and changes for the next five-year policy document. The committee comprises representatives of the finance, agriculture and industry ministries along with representatives of apex export organisations and leading chambers.

Commerce minister B B Ramaiah will hold a board of trade meeting tomorrow to discuss the export slowdown and the amendments for the new Exim policy 1997.

A service provider means a person providing supply of a service from India to any other country; supply of a service from India to the service consumer of any other country in India; and supply of a service from India through commercial presence in the territory of any other country.

The definition of services was expanded to include computer software in the 1995 version of the policy.