Kerala has potential to earn $54.7 billion in export revenues by 2024-25: Study
Kerala could well earn $54.7 billion in export revenues by 2024-25 with a favourable policy framework in place and concerted efforts to boost exports, revealed a study published by the Export-Import Bank of India (Exim Bank) on Friday.
Merchandise exports from Kerala stood at $ 9.8 billion in 2018-19. Although exports from the state have registered robust growth in 2018-19, there remained an untapped merchandise export potential of nearly $ 6.7 billion.
The report was released in a recent interactive webinar organised by the Exim Bank.
The study identified a six-pronged export strategy for the state, 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.
Exim bank recommended shifting 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-friendly infrastructure in export competitiveness, the study recommended, inter alia, adoption of a public-private partnership 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 the districts of Alappuzha and Palakkad, leveraging central government-sponsored schemes for enhancing the cold chain network, utilising IT-enabled services to improve the reach and transport of 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 suggested development of a branding strategy for products in which the state has geographical indications, refund of expenses incurred by exporters in the state to obtain 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/ hospitals, and creating awareness about finance and risk mitigation products.