Government envisages more steps to check inflation

April 11th, 2008 - 6:30 pm ICT by admin  

New Delhi, Apr 11 (ANI): Commerce and Industry Minister Kamal Nath said today that the central government would take more steps to control inflation.

Releasing India’s foreign trade policy document here, Nath said that the supply side inflationary trend in the economy should be addressed by ensuring the regular supply of food items.

He also suggested to State Governments to take measures to counter the problem of hoarding and speculation in trade.

Nath said, The government was looking at ways to check soaring steel and cement prices by withdrawing incentives for exports of steel. Any ban on the export of iron ore would not impact domestic steel prices, which have been rising strongly.

India has imposed export duties of 300 rupees per tonne on high-grade iron ore and 50 rupees for low grades, but steel firms, worried about future supplies, have been lobbying for a hike in the export duty or a ban on exports.

On Friday Indian inflation soared to its highest in more than three years in late March, sending bond yields to nine-month highs.

Nath also announced to bring the information technology (IT) sector under the Special Focus Initiative this year.

Nath said that the specific items of this sector shall be made eligible under the High Tech Product Export Promotion Scheme and funds would also be specifically earmarked for it.

He assured the setting up of new Export Promotion Council for the telecom sector to provide institutional support to exports from the telecom sector.

He informed that under the Industrial Park Scheme, the Foreign Trade Policy has also included Information Technology (IT), Information Technology Enabled Services (ITES) and Research and Development (R & D) in natural sciences and engineering as industrial activities permitted in the Parks. (ANI)

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