UP officials complain state's exports are undervalued

Despite the constraints of power shortage and archaic labour and industrial laws, the export of industrial and traditional goods from Uttar Pradesh is growing at a healthy rate of 15 per cent.

Exports of traditional and industrial products from the state in 2006-07 are likely to cross Rs 24,000 crore.

According to the Directorate General of Commercial Intelligence and Statistics (DGCIS), Kolkata, the share of Uttar Pradesh in exports from India is 4 per cent.

UP government officials, however, dispute this figure, saying that the DGCIS counts only the export of goods and not services.

"If the export of services like software and foreign exchange earned by the hotels located in Uttar Pradesh from foreign tourist are added, the share of the state exceeds 7 per cent," said Prabhat Kumar, joint export commissioner, Uttar Pradesh.

"Actual figures of exports from Uttar Pradesh could be even higher, because many products are exported through big export houses in Mumbai, something not accounted for," said Prabhat Kumar, adding, "large quantities of perfume produced in Kannauj are exported through export houses and export-import agents, who buy the product from the perfume producers and sell it using their contacts in the global market, mostly in West Asia."

Despite competition from Iran, Pakistan and Central Asian countries, the export of hand woven carpets and durry has registered a healthy growth rate of 20 per cent.

In 2006-07, carpets and durry worth Rs 2,000 crore are likely to be exported. In 2004-05, the export of carpets from Uttar Pradesh was only Rs 1,687 crore.

The major carpet weaving centres of Uttar Pradesh are located in Varanasi, Bhadoi, Mirzapur, Agra and Noida. From these Centers carpet is exported to as many as 30 nations including in Asia, Europe and North America. The US accounts for the largest share of carpet exports from Uttar Pradesh (40 per cent).

In recent years, engineering and builders hardware products have managed to get a strong foothold in internal market on the strength of precision and quality and honouring the schedule of supply as desired by the buyers in international market.

In 2002-03, the export was Rs 1,693 crore which rose to Rs 3,184 crore in 2003-04 and Rs 5,984 crore in 2004-05 thus registering a growth rate of over 88 per cent.

Officials of the Uttar Pradesh Export Promotion council says the outdated labour and industrial laws, power shortage and delay in shipment of the finished product to the foreign buyers were some of the major constraints hindering the entrepreneurs of the state from realising the full potential of the export market.

Though the size of the exports of gems and jewellery from Uttar Pradesh is not very significant, the export of these items have registered positive growth. In 2002-03 the exports stood at Rs 155 crore, is all set to cross Rs 500 crore marks in 2006-07.

The other major item of export from Uttar Pradesh is art metal ware, which is likely to achieve the export of Rs 3,000 crore in current fiscal and export of leather and leather goods is likely to be at same level of Rs 3,000 crore.

Cotton cloths and ready-made garments, agro products, processed fruit and food products and processed meat is also exported in significant quantity from Uttar Pradesh.