The commerce and industry ministry has suggested a Rs 10,000-crore scheme to establish 700-plus districts throughout the nation into export hubs as part of the government's upcoming foreign trade policy. Budget 2022-23 is expected to include an announcement to that effect.
"The Centre would provide around Rs 10,000 crore, with the remaining funds coming from of the states. As a result, the scheme would require a higher investment" said a government official.
According to those familiar with the situation, the states' contribution might range between Rs 5,000 and Rs 6,000 crore. The government intends to achieve double-digit export growth from the country's 500 districts during the next 3 to 5 years. India's merchandise exports increased 38.91 percent year on year to $37.81 billion in December 2021, from $301.38 billion in April-December.
"District as Exports Hub is a present initiative, although it receives no assistance from the government. A proposal to the finance minister has been submitted to launch a new plan" said the official.
A closer look at “District as Export Hub initiative”
Under the initiative, an institutional methodology in the form of District Export Promotion Committees has been established in each district, with the primary function of developing and implementing district-specific export implementation plan in collaborative efforts with all key stakeholders from the Centre, state, and district levels.
Aside from creating a database of all possible exporters in each district, work is also being done to create an interface with Indian missions abroad to give them accessibility to exporters in each district so that they may sell outside of India and identify potential consumers.
The Centre also intends to assist states and UTs in developing an annual 'Export Ranking Index' of districts in the respective state, which will rate each district based on its export competitiveness.
According to industry executives, the launch of this scheme is appropriate considering the forthcoming key elections in Uttar Pradesh and Punjab. Across its 75 districts, Uttar Pradesh had launched the One District, One Product program. "UP has a huge number of districts, and such a boost will benefit export markets from the state and the entire nation," said an unidentified industry executive.
