Exporting goods are divided into (1) Traditional Commodities, alarmingly which is a short list and (2) Non-traditional Commodities, which requires attention. In terms of foreign earnings, the dependence on the traditional commodities is significant and it is high time to create a diversification in foreign earnings, through increase exports of non-traditional commodities. Why should we choose non-traditional commodities? Since more investment in the TC will increase the foreign earnings of the country at a decreasing rate but on the other hand steps taken for the NTC will accelerate the foreign earnings at an increasing rate.
To increase the export of non-traditional commodities - government, banks and the industrialist/entrepreneurs need to take responsibilities and perform their duties. Each of them has to play a vital role in this regard; as without any of them it will be a cripple’s journey.
The government needs to play a very important role regarding the laws, rules and regulations and export policies. They can enhance the opportunities by expediting the following tasks -
Simplification of export procedures and strengthening export-led co-operation through reducing regulatory role of the government Providing fiscal incentives, like, Duty drawback, Income tax rebate on export earnings, Tax holiday, etc. Encouraging establishment of backward linkage...