Source: Economic Times via Indian Economic Business News
Gujarat, which accounts for about a quarter of India’s total exports, is mulling a five-year export policy to focus on value-added exports in sectors such as textiles, agriculture and dairy. The move by the top exporting state in the country comes on the back of sagging efforts by the centre to boost dwindling exports. The first state in the country to have an export policy, Gujarat plans to increase the share of exports from the state from 25% to 30% in five years. As a precursor to the policy, the Federation of Indian Exports Organization undertook a study for Gujarat on the state’s export competitiveness and identified sectors with export potential. “We are working on improving exports from the state and will take steps to increase the share to 35% of total India’s exports by 2020,” said a state government official. The government may announce incentives ranging from exemption from value-added tax (VAT) in some sectors to focus market scheme and focus product scheme to offset high freight cost and other externalities to select international markets and promote products with high-export intensity. Given that over 90% of Gujarat cotton goes to other states for value addition, emphasis would be laid on readymade garments. The state already has potential in the textile sector, as nearly 23% of the state gross domestic product comes from textile and related industries.