Financial Daily from THE HINDU group of publications
Thursday, Apr 04, 2002
Industry & Economy
FKCCI favours separate export policy for States
BANGALORE, April 3
WITH the World Trade Organisation (WTO) dismantling trade borders, there seems to be a growing perception among the States of the need to enunciate individual export policy.
The policy formulations in regard to exports and imports are centralised, leaving little role for State Governments.
However, under the WTO regime the impact of competition has necessitated aggressive intervention not only at the Central level but at the State level also, says a draft document on Export Policy of Karnataka prepared by the Federation of Karnataka Chambers and Industry (FKCCI). The role of the State Governments in export promotion has assumed enormous importance because the real "act'' of exports take place at the State level and is influenced by the policies of State Governments. Thus, a separate export policy for each State becomes an absolute need.
Pleading its case for a separate export policy for the State, FKCCI said that export activity produced ripple effect and triggered innovative methods in production, selection, processing and marketing. This contributed directly to value-addition of the State economy.
It further pointed out "while the regulatory powers governing export-import policy rests with the Central Government, the States can play a pro-active role as far as export promotion is concerned.'' The bottomline of such a policy would be an export-friendly environment with necessary infrastructure and relaxation in tax structure.
"Karnataka has an unique advantage of being an agro-biased economy. Therefore, the export content of the product from the State has necessary linkage to agriculture, horticulture and floriculture''.
The FKCCI document has outlined the broad objectives of the export policy as: to increase Karnataka's share in all-India exports from 7 per cent to 17 per cent by 2005; to create an overall facilitating ambience for export either by providing infrastructure facilities or by announcing some relaxations; and to focus on the existing industries and to provide them with necessary support to give a further boost to exports from these industries.
The policy could also look at taking steps to attract certain industries, from which exports are yet to pick up despite their enormous potential, in the export map of the State as well as the country.
Karnataka's exports during 2001-01 touched Rs 15,042 crore of which 60 per cent came from software, electronics, garments and agro produce.
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