The Hindu Business Line : `Give increased thrust to export promotion'

The Kerala Government has to give increased thrust to export promotion to register an export growth at least comparable to the growth percentage of the Southern States.

In a paper presented at a workshop here on `Evolving an export strategy for Kerala - Role of EPCs', Mr Balagopala B. Pai, President, Indian Chamber of Commerce and Industry, said that the state has to play a constructive role for the sustained growth of the export sector and as such the initiative taken by Kerexil for organising a workshop with the objective of evolving an export strategy for Kerala was commendable.

The State still does not have an export promotion policy though export promotion at the national level started more than 50 years ago, he said. While formulating an export promotion policy, the Government on its own should come out with measures to promote and support exports originating from the State. This kind of sport assistance should be completely separate from national export promotion assistance being provided by the Central Government, Mr Pai said.

BOARD MOOTED

In order to implement these policies and measures, the Government should set up an export promotion board under the chairmanship of the Chief Minister, consisting of the Industries Minister, other ministers and officials concerned with the State's export promotion and representatives of Chambers of Commerce and leading associations of exporters.

The primary objective of the export promotion board should be to take on the spot decisions on all problems faced by the exporters from the State.

Export promotion councils that have been working at the national level and are directly dealing with export products from Kerala, but do not have their office in the State should open their representative offices at Cochin. This is because export of products from India as well as many aspects of export promotion like MDA is closely linked with the export promotion councils.

He said that the State Government should actively consider creating a separate department of export promotion. Otherwise exports will never receive the attention it deserved from the State, he said.

This department should organise every year an international trade exhibition to promote export products originating from Kerala and for which the Government can even set up a permanent trade centre-cum-exhibition complex which would be open throughout the year for visiting buyers from abroad to get any information they want.

NEW PRODUCT LINE

As the export basket is shrinking, new product line should be identified, he said. Besides, while promoting Kerala as the global advantage market for tourism, service exports, information technology, food processing, garments, special efforts should be made to remove the impediments standing in the way of achieving a satisfactory growth in the case of our traditional exports tradem he opined.

According to Mr Pai, an earnest attempt should be made to identify the potential of small and tiny sectors and equip them for active participation in the export trade. Adequate encouragement should be given for value addition especially for our cash crop items, he said.

Cost and quality are the key factors for the survival of products and services in the world market. Our industries having export orientation should be relived of the burden of welfare levy, he said.

"Lack of infrastructure facilities is a deterrent for export promotion. The required facilities should be provided by the State. If the State is not in a position to make massive investments, such facilities can be developed on BOT basis. Entrepreneurs in the private sectors are willing to invest for the same. But it has been our experience that important projects are unduly delayed due to obstructions like demand for employment for the locals, tactics for extortion of money for no work done, etc. The State should make it a point to see that such projects are not delayed for such reasons so as to enable the investors to complete the work in time," Mr Pai said.

Cochin, which is the only major port in our State, plays a significant role in the export trade. Hence, the government has to give increased attention for the overall development of this port. Also, a high-level policy decision committee under the Chairmanship of the Chief Minister can be formed to discuss problems and prospects of export trade giving adequate representation to Chambers of Commerce and Trade Associations concerned, he added.

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