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The Gazette of India

EXTRAORDINARY

PUBLISHED BY AUTHORITY

NEW DELHI, TUESDAY, NOVEMBER 8, 1849

GOVERNMENT OF INDIA MINISTRY OP COMMERCE RESOLUTION

(EXPORT PROMOTION COMMITTEE REPORT)

New Delhi, the 8th November 1949

No. 64-CW(34)/49.—Feeling great concern at the unfavourable balanceortrade trade position, Government appointed, by Resolution of July 9, 1949, the Export Promotion Committee under the Chairmanship of Mr. Gorwala, and charged it with the task of suggesting ways and means to achieve a balance between exports and imports. The Committee was also asked to examine the impediments in the way of increased exports, particularly price, quality and licensing mechanism, and to suggest what should be done to remedy the situation. The committee was to make special recommendations in connection with our exports to hard currency countries. The terms of reference were purposely kept sufficiently w i de to enable the Committee to deal with any matter relevant to the main subject) of promotion of export trade. The Committee was requested to submit its report by September 15, 1949. Government is pleased to note that the Com- mittee was able to submit the report by the 15th September, and that the report deals with all the matters which fell within its scope of enquiry.

2. Government accepts the recommendation of the Committee that special steps should be taken to develop and promote India's export trade and has decided that the office of the Chief Controller of Exports should be charged with this responsibility. An Export drive however can only be successful if the volume of internal production also expands. Otherwise, an internal shortage would be created which would necessitate additional imports or cause a rise in prices. Only by increasing internal production can the problem be most satisfactorily tackled.

3. Government has noted the recommendation of the Committee for increased production of such crops as will fetch a good price directly, or alter processing in the export market, or will reduce the necessity for imports of the more expensive commodities. Proposals for securing adequate production of food as well as exportable cash crops are under the consideration of Government,4. The Committee has in its Report made a number of important and valuable suggestions on general matters relating to export promotion as well as in regard to individual commodities. It is not possible to deal with in the body of this Resolution with all the recommendations in detail, some of which require further and more detailed consideration while others have already been acted upon. The decisions of Government on some of the more important recommendations of the Committee are summarised below:— (1) The Government of India will bring to the notice of Provincial Gov- ernments the observations of the Committee regarding the effect ( 2217 )

of wasteful indiscriminate stoppage of cattle-slaughter on the export trade in hides and skins.

(2) Government shares tho concern expressed by tho Committee over the growth of speculation which hae often tended to fogenexnbe intq gambling and will take steps to bring ill under proper control. Speculation in jut© goods has already been stopped.

(8) Steps will bs taken to liberalise export control still further and parti- cularly to reduce restrictions on ((he export of manufactured goods ito the minimum.

(4} .The licensing procedure as well as the other formalities connected with exports will be simplified so as. to eliminate delays nud inconvenience jbo ihe trade.

(5) When goods are to be exported up to a total quota, exports will as fa-i- as possible be allowed to go freely until the quota has been exhausted.

(6) Processing and re-export of goods of soft currency origin will he encouraged. For this import quotas will be increased where necessary.

(7) Those engaged In the export trade or in producing for export will receive full consideration in the allocation of controlled raw¹ materials, grant of import licences, supply of packing materials and provision of transport. The Chief Controller of Exports will assist in oases of difficultly.

(8) gtep" will be taken on the lines of the recommendations of the Corq- mittee to ensnre that the quality of Indian exports is such as to give no oaufie for complaint to overseas buyers and iihat if any complaints are received they are promptly dealt with and settled.

(9) .Govenunenfi will be ready to revise export duties whenever the condi-

tions of trade seem to warrant) such action.

£10] Stepn to ensure that provincial sales taxes will not apply to exports in the future have been already taken.

(11) The question of giving a rebate ha respect of Import} duty paid on raw materials used in any processing industry will be considered sympathetically subject to the necessary administrative arrange- ments to establish the identity of the raw material used being practicable.

(12) Measures to give relief to persons trading in countries with, which there js no double incometax relief arrangement aro under consideration,

5. In conclusion, Government wishes to place on record ite sense of appre- ciation of the Beport which was prepared within the tone prescribed and which covers such a wide range of commodities entering into our export trade. Gov- ernment is fully aware that Mr. Gorwala and his colleagues on the Oommibiee have had fo work at considerable personal inconvenience and sacrifice and takes jfchi* opportunity of expressing its thanks to all those who have so ungrudgingly worked in the oauee of the country's export trade.