Centre-states partnership in exports

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Bikky Khosla | 09 Jan, 2018
The Union Commerce Minister has chaired the 3rd meeting of the Council for Trade Development and Promotion in New Delhi. The underlying objective is to enhance the Centre's cooperation with the states and union territories in making the latter active partners in boosting India's exports. In his speech, the minister called upon states to explore ways of tapping into the promising global trade pegged at 5 trillion dollars. The intent sounds good. Without actively involving the states, it would never be impossible for the country to make a permanent difference in exports.

It is a no brainier to say that our export sector has come a long way in the last few decades, but when we compare it with that of China or even minnows like Thailand, it becomes clear that we, despite being a vast resource-rich country, are lagging far behind them. In order to change this situation, we need to change a lot of things, and one among them is certainly to enhance the participation and contribution of our states to exports. I raised this issue on SME Times long back in 2012, and it is a relief to see that the government is now taking it seriously.

So, how to begin with this? The first thing that seems imperative is to find out which state has how much export potential and in which areas. Currently there is no adequate mechanism to find it out. Without such a mechanism, it would be difficult to begin with. Secondly, it must also be taken into consideration that all states are not alike in term of development level, export awareness and facilities available. So, each state needs customized support from the Centre. Also, while framing foreign trade policies the Centre must take care of this aspect.

As of now it is clearly evident that our export activities are concentrated to some select fields and a few regions. Most of the states have vast export potential but lack of awareness, poor infrastructure, lack of funding, etc. are some of the major problems that are preventing them from exploiting this potential. Additionally, states must also ensure that these efforts are taken to the grass-root level. The local bodies can be involved to inculcate an export culture among the masses.

I invite your opinions.