‘Kerala could target $54.7 billion export revenue in five years’

Our Bureau Kochi | Updated on August 16, 2020

Export-Import Bank released a paper on six-pronged export strategy of the State

With a favourable policy framework and concerted efforts to boost exports, Kerala could target to achieve $54.7 billion export revenues by 2024-25.

A study by Export-Import Bank of India pointed out that the merchandise exports from the State stood at $9.8 billion in 2018-19. Although exports from the State have registered a robust growth recently, there remains an untapped export potential of nearly $6.7 billion.

The bank organised an interactive webinar on the theme Potential for Enhancing Exports from Kerala to familiarise participants with the potential export opportunities as also to proffer key export strategies to realise its latent potential and achieve higher export growth trajectory.

It also released a working paper titled Promoting Exports from Kerala: Insights and Policy Perspectives. The study was released by K Ellangovan, Principal Secretary, Department of Industries and Commerce and NORKA.

Export strategy

The study identifies a six-pronged export strategy built upon the essential dimensions of diversification of products and markets, infrastructure leverage and strengthening, capacity building, fiscal incentives, devising an export promotion campaign, and institutional streamlining. The study recommends diversification from traditional export items towards higher value-added products such as processed food, technical textiles, bulk drugs, and electronics and machinery.

Highlighting the role of trade enabling infrastructure in export competitiveness, the study recommends inter alia adoption of a public-private partnership (PPP) model for strengthening the existing network of waterways, creation of a fund for development of export infrastructure in the non-major ports, increasing warehousing capacity in Alappuzha and Palakkad, leveraging Central government sponsored schemes for enhancing the cold chain network, utilising IT-enabled services to improve the reach and connectivity for agricultural produce etc.

The government could also consider fiscal incentives such as capital subsidy or grants in priority sectors and reimbursement of electricity duty in key export-oriented sectors. As part of its export promotion campaign, the government could also consider setting up export awards, establishing a brand equity fund for branding and marketing of products from Kerala etc.

David Rasquinha, Managing Director, Exim Bank, said that international trade is at the focal point of the narratives of Atmanirbhar Bharat, and there is a need to coalesce efforts at all levels of governance to prepare the domestic industry for achieving these objectives.

Published on August 16, 2020

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