KOCHI: A study on the export competitiveness of Kerala conducted by Kerala State Industrial Development Corporation, (KSIDC) and the Federation of Indian Export Organisations (FIEO) has stressed the need to explore new sectors in which the state has a competitive advantage.
The study identifies sectors such as marine products, foodstuff, plywood, textile, rubber, carpets and medical instruments as having potential for diversification. It called for streamlining efforts for developing an export basket containing items from three Es— electronic, electrical, and engineering for which world demand is growing.
As part of the initiative, 58 products clusters that account for 90 per cent of Kerala’s regular exports were studied and their growth prospects analysed. The analysis found that 19 items in Kerala's export basket were competitive in the world market.
The state has competitive lines in spices, essential oils, rubber related and carpet products only. But these items accounted for just 20.43% of the state's export revenues in 2014. Most of the exports of Kerala are from primary and low technology sectors and representation of high value items is minimum. Vegetable products, animals & fish together form about 50 per cent of the exports from the state.
The study identified strategic clusters classified as fortune changers, front runners and favourites so that the government can put its limited resources to get higher growth in a short span of time.
The products that could change the state’s fortunes such as electronic items, machinery and parts, pharmaceutical items, medical equipment, value added chemicals, plastic products and essential oils are the fortune changers. Front funners contain items such as jewellery, rubber products, coir products, wood products especially plywood, textiles and automobile components. Favorites represent traditional products such as coffee, tea, spices, shrimps, natural gums, coconut, coconut oil, marine prep ..
The report called for policy initiatives focusing on three areas - basic requirements, efficiency enhancers and innovation & sophistication – to boost export competitiveness.
The study was conducted in the context of the state losing its dominance in some of the major agricultural sector exports. Dr M. Beena, KSIDC MD handed over the study report to state Industry Minister A C Moideen, at a function held at the Minister's Chamber.
Source: Economictimes.indiatimes.com
