Union Commerce Minister Ramkrishna Hegde said that exports growth was negative during the period April-November last year and it picked up gradually from December to March, registering a possible growth rate of four per cent in dollar terms. The growth in January was 8.6 per cent.

The rise in exports was possible due to positive growth witnessed in the three months starting December 1998, he said while addressing a meeting organised by Basic Chemical Pharmaceuticals & Cosmetic Export Promotion Council.

In a major volt-face, Hegde said that the Reserve Bank of India (RBI) has its own compulsions to discontinue special interest rates on rupee export credit after the special scheme expired on March 31, 1998. ``I had a meeting with RBI governor Bimal Jalan and he explained to me why it cannot be done,'' he said adding that thegovernment cannot force the RBI to take such a decision as it is an autonomous body.

The export performance, however, cannot be ignored considering the fact that it was achieved in the backdrop of the south-east Asian crisis, he said adding that even a strong economy like China reported a negative growth. A joint meeting of the officials from customs and Directorate of Foreign Trade will soon be called to give a fresh and positive direction to the management of exports. It is high time that bureaucrats should change their mind-set and assume the role of facilitators, he said.

"I am not in favour of devaluation to make exports competitive, quality and timely delivery can only make exports competitive," he said responding to a specific query. He said the value of the rupee would be market-driven and a lot will depend on the country's exports and imports and international situation.

Earlier, addressing the 5th annual general meeting of the SAARC Chamber of Commerce and Industry, Hedge called upon the SAARCmember countries to set up an united front to encounter the pressure of the developed nations who always insisted to open up the markets for their own interest. ``This is against the policy of WTO,'' he said.

``Like the European Union (EU) we need to work on a common currency and forge closer ties for trade and commerce,'' Hegde said. Pointing out the need for having a common currency, Hegde said ``if the EU could come together on the Euro with all the differences among them, we in the SAARC community at least share a modicum of commonality.''

By the year 2000, India would remove all import restrictions to goods from the SAARC countries and the other six countries would do so in a phased manner, he stated.

Kantikumar Podar, president of the SAARC Chamber of Commerce and Industry, said the chamber was concentrating primarily on SAARC Economic Union. He said 50 joint venture projects have been identified by Tata Economic Consultancy Service.