Southern States To Implement Suggestions On Exports

Five south Indian states are putting in place an implementation strategy as per the recommendations of a study on 'exports from the southern region - opportunities and challenges' submitted to the Federation of Indian Export Organisation (Fieo), southern region by the Business Consulting Group.

The report has suggested focused government intervention - both from the Tamil Nadu government and through co-ordination with the central government - to build investments and develop competitive advantages in individual areas to achieve an export target of US$ 15 billion by year 2001.

The contribution of exports from traditional key sectors like textiles, garments, leather and auto components, which is currently around $3 billion, should be increased to $9 billion, it said. The study has also identified software, floriculture, consumer electronics, processed foods and automobiles as new export areas.

 

In Andhra Pradesh, existing export sectors like drugs and pharmaceuticals, tobacco, chillies, marine products and non-basmati rice could contribute double its present level of $1 billion by 2001, it said. Software and iron and steel have been recognised as potential sectors that could take the state's exports to $3 billion by the turn of the century, it Business Consulting Group added.

Kerala, which was primarily an exporter of spices, cashew and marine products needed to attract greater investments in non-traditional areas like value-added rubber products, floriculture and horticulture.

The study has also suggested a comprehensive finance scheme for marine product exports.

Around 90 per cent of the software output in Karnataka was presently exported, the Business Consulting Group report said.

A total of Rs 26,600 crore investment was also being planned in sectors including software, iron and steel, floriculture, silk, automobiles and garments.

On the whole, the southern state economies, which presently accounted for 25.4 per cent of the total exports from the country, should focus on increasing their contribution to 30 per cent by 2001, suggested the report.

It has also underscored the need for government support in development of power, ports, airports and roads and other export-specific infrastructure, critical in attracting investments in individual sectors.