The Hindu Business Line : AP to diversify export basket

THE CHIEF MINISTER, Dr Y.S. Rajasekhara Reddy, along with the Vietnamese Ambassador to India, Mr Vu Quang Diem (left), and the CII AP Chairman, Mr G. Vivekanand, during a CII meeting on `Exim Excellence' in Hyderabad on Thursday. - H. Satish

Hyderabad , Nov 16

Andhra Pradesh is planning to diversify the export basket with emphasis on increasing exports from highly labour-intensive sectors.

The Chief Minister, Dr Y.S. Rajasekhara Reddy, said that though the State's share is about four per cent of the country's total exports, the State would endeavour to double the overall export with thrust on some select sectors.

Speaking at an event hosted by the CII, Dr Reddy said that the State achieved IT exports of Rs 12,521 crore in 2005-2006, registering a growth rate of 51 per cent - the highest in the country against national average of 36 per cent.

While the State's IT exports account for about 12.39 per cent of the country's total exports, they contribute to about 53 per cent of the State's overall exports.

Referring to some sectors that need more focused development, Dr Reddy said that gems and jewellery, footwear, textiles and apparel offer immense scope for growth.

On agriculture, he said that the State has established an export zone at Chittoor for mango pulp and vegetables.

The Government has decided to establish an export zone for chillies at Guntur with focus on productivity, quality enhancement, modernisation of post-harvest operations as well as marketing and promotion.

As a part of the Government's efforts to boost exports, the backup infrastructure is being strengthened with major projects of international airport at Hyderabad and ports at Gangavaram and Krishnapatnam at advanced stage.

On the potential of natural gas in the Krishna-Godavari basin, Dr Reddy said that the State proposes to utilise the gas from the basin to achieve long-term sustainable growth in the industrial sector.

The State continues to simplify procedures to attract more companies. It has secured clearance for 41 SEZs, including 14 in the industrial sector and 27 in IT. These zones will significantly boost exports from the State, he said.

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