There is a high possibility for Kerala to increase its revenue in billions by exporting products by 2024-2025. EXIM bank suggested a shift from normally exporting traditional items towards high value-added items like processed food, bulk drugs, technical textiles, electronics and machinery. The merchandise exports from Kerala was at $9.8 billion in FY 2018-19.
A study published by EXIM bank (Export-Import Bank of India) states that Kerala has a potential to earn export revenues in billions precisely $54.7 billion by 2024-25 with a favourable policy structure in place and intensive efforts to boost exports. There has been a robust growth in FY 2018-19 where revenue stood at $9.8 billion but still, some untapped market is been identified which can earn nearly $6.7 billion.
The report was released in a latest interactive webinar session conducted by the EXIM bank on the theme ‘Potential for Enhancing exports from Kerala’ on 14th August 2020 to familiarize participants with export relate opportunities and also to educate them on key export strategies and policies for Kerala to realize its hidden potential and achieve higher growth. The study recognized six-prolonged export tactics or approach for the state, which is built on important dimensions of diversification of markets and products, infrastructure leverage and strengthening, fiscal incentives, capacity building, institutional streamlining and devising an export promotion campaign. Kerala mainly exports traditional items and EXIM bank recommended a shift towards items like electronics, machinery and bulk drugs etc where this shift can help the state earn more revenue. There is a highlight given to trade-friendly infrastructure amid the export competition, adoption of the public-private partnership model for firming the existing network of waterways, fund creation for development of export infrastructure in non-major parts, increasing the storage capacity in the districts Alappuzha and Palakkad, utilising IT-enabled services to enhance the reach and transport of agricultural produce, leveraging central government-sponsored schemes for improving the cold chain network and setting up a center of brilliance in animation, visual effects, gaming and comics in the state. The study suggested from the perspective of capacity building that the development of a branding strategy for products in which the state has geographical signals, the refund of expenses acquired by exporters in the state to attain legal certifications, supporting firms in availing funding for front line technologies and advancements under several central government schemes, encouraging hospitals and clinics in Kerala to tie up with foreign health institutions or hospitals, and generating awareness about finance and risk mitigation products.
