Exim Bank’s six-pronged strategies for the state
With a favourable policy framework and concerted efforts to boost exports, Kerala could achieve US$54.7 billion of export revenues by 2024-25, up from US$9.8 billion of shipment of merchandise products in 2018-19.
This was stated in a study, ‘Promoting Exports from Kerala: Insights and Policy Perspectives’, released on 14 August 2020 by the Export-Import Bank of India which highlighted untapped merchandise export potential of nearly US$ 6.7 billion.
The Exim Bank organized an interactive webinar ‘Potential for Enhancing Exports from Kerala’ on 14 August 2020 to familiarize participants with the potential export opportunities to more than 70 participants and speakers from Exim Bank as well as Kerala State Government.
It also proffered key export strategies for Kerala to realise its latent potential and achieve a higher export growth trajectory.
The Study identifies a six-pronged export strategy for the State, built upon the essential aof 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 away from traditional export items for Kerala 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 model for strengthening the existing network of waterways, creation of a fund for the development of export infrastructure in the non-major ports, increasing warehousing capacity in the districts of Alappuzha and Palakkad.
The study also highlighted on leveraging Central Government sponsored schemes for enhancing the cold chain network, utilizing IT-enabled services to improve the reach and connectivity for agricultural produce, and setting up a Centre of Excellence for the Animation, Visual Effects, Gaming and Comics sector in the state.
From the perspective of capacity building, the study suggests the development of a branding strategy for products in which the state has Geographical Indications, a refund of expenses incurred by exporters in the state for obtaining statutory certifications, assisting firms in availing funding for cutting-edge technologies under various Central Government schemes, encouraging hospitals in Kerala to tie-up with foreign health institutions and hospitals, and creating awareness about finance and risk mitigation products.
The Kerala 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, and assessment of the industrial clusters in Kerala for identification of the necessary areas of intervention.
The study also highlights the need for an effective institutional ecosystem in Kerala for promoting exports and recommends setting up of a Kerala Export Promotion Council under the aegis of Kerala’s Department of Industries.
Exim Bank Managing Director David Rasquinha noted, in his welcome address, the international trade is at the focal point of the narratives of “Atmanirbhar Bharat” and “Vocal for Global”.
“There is a need to coalesce efforts at all levels of governance to prepare the domestic industry for achieving these objectives,” he said.
He also apprised the participants about the multi-layered engagement of Exim Bank for financing, facilitating and promoting exports at the state level. #exports #merchandise #manufacturing #products #shipping #banks /fiinews.com
