Districts as Export Hubs

Introduction

India is a Land of Rich Diversities :

Huge Untapped Potential

India is known as a Land of Rich Diversities in the world. It’s Geographical & Demographical uniqueness in Cultures, Language and Surroundings, Environment and Diverse Agro–climatic Zones bears  a Rich Source of Resources, Artistic Works, Crafts, Crops and Variety of Foods and other Products.

India’s rich cultural heritage and traditional diversity are reflected by a wide variety of handicrafts made by artisans from all over our country. The crafts of India are Diverse, Rich in History, Culture and Religion.

Indian Crafts include metalwork, wood work, cloth, textiles and fabric, jewelry, terra cotta objects, pottery and objects made from cane and bamboo. Some crafts such as woodwork, painting and stonework are featured as architectural elements and as objects of art.

India’s Farmers, Artisans, Weavers, Engineers, Small Entrepreneurs, the MSME sector and others are the strength of the whole Nation.

India Needs to Preserve its Vibrant and Culturally Rich, Centuries-old Roots in the form of its stunning Arts and Crafts and Traditional Creative Works. Also it is Essential to Explore & Create some Commercial Value to the Beneficiaries and make them Live, Prosper and to Sustain our Traditional & Cultural Values and Preserve our Wealth.

Each District of India can be characterized as an exclusive source of distinct and distinguished products, but Remain Untapped. If the Potential of each District is Tapped fully and Realized, then it will Fuel Economic Growth, Generate Employment, Boost Rural Entrepreneurship, Enhances Exports  and Truly Transforms to move towards the goal of ‘Aatmanirbhar Bharat’.

Districts as Export Hubs Initiative

Hon’ble  Prime Minister in his Independence Day speech on 15th August, 2019 highlighted the need to channelize the Unique Potential of each District of the country and convert them into export hubs.

Taking his Vision forward,   Department of Commerce through DGFT launched the “Districts as Export Hubs” initiative and since then has been working with the States / UTs and the districts directly to Create Institutional Mechanisms for Facilitating and Promotion of Exports Of Identified Products / Services from the Districts.

Export Promotion Based on Local Strengths

Districts as Export Hubs is the first such initiative of Government of India which tries to Target Export Promotion, Manufacturing and Employment Generation at Grass Root Level and has made States and Districts accountable for the Export Growth from the Districts in the Country.

It is a Great Transformational Step to realize the potential of a district. The initiatives aim to Link Local Producers in Rural and Remote Districts with Global Supply Chains, make them Self-reliant and bring them into the Economic Mainstream.

The Objective is to enable MSMEs, Farmers, Artisans  and Small Industries to get Benefit of Export Opportunities in the Overseas Markets, Promote Exports of our Traditional Products based on our Local Strengths and shift focus on District led Export Growth for Self-sufficiency and Self- Reliance and as a whole Increase Competitiveness & Boost Exports from the Nation.

Products at District Level Identified

Under the ‘Districts as Export Hubs Initiative’, products and services (including GI Products, Agricultural Clusters, Toy Clusters etc.)  with export potential have been identified in all districts of the country in consultation with the stakeholders including the States / UTs.

Under the District as Export Hub (DEH) initiative, products including agricultural products with export potential have been Identified in all 733 Districts Across the country.

The list of such identified products and services gets updated regularly on the basis of inputs received from the States / UTs.

District as Export Hub Initiative also strives to achieve the objectives of Agriculture Export Policy by Promoting Value Added Exports.

Objectives of Districts as Export Hubs Initiative :

The Objectives are as below :

Districts as Export Hubs : Institutional or Policy Interventions

Following are Institutional or Policy Interventions taken.

♦ Preparation of State Export Strategy / Policy by all State / UT Governments

♦ Product/Service identification in each District

♦ Constitution of District Export Promotion Committees(DEPC)

♦ Preparation of District Export Action Plans(DEAPs)

♦ Monitoring implementation of DEAPs

♦ Identifying Agricultural Clusters in the Districts

♦ Mapping GI product in each District

♦ Export Development Centres ( E-Commerce in Districts)

Institutional Mechanism

State Export Promotion Committees (SEPC) at the State Level

District Export Promotion Committees (DEPCs) at the district level

ICEGATE / DGCIS Generates District-wise Export Data to Track the Export Performance from each District.

In the initial phase, product/services (GI products, agricultural clusters, toy clusters etc.) with export potential in each District have been identified

District Export Action Plans (DEAP)

A District Export Action Plan may include the following:

> District Profile

> Industries Profile

> Major Products (Goods and Services) Exported from District

> Other Products/Sectors with Potential to export in Future

> Identifying the bottlenecks faced by the Industry

> Identifying institutional responsibilities, specifics of policy, regulatory and operational reform

> Identifying infrastructure/utilities/logistics/Policy interventions required.

> Action Plan must define quantifiable targets with specific timelines for their implementation.

> Clear identification of incentives/Support provided by the State and Central Government.

> Training and development needs for identified export products

> Analysis of the export data of the District and ways and means to effectively capture it.

> Mid-term and long-term export strategy/suggestions to promote the District as Export Hub.

Govt. to develop 50 Districts as Export Hubs:

Under the proposed scheme, the government will select 50 districts through a challenge, and they will receive ₹50 crore each. The districts will be assessed on parameters such as plans for exports, efforts to plug infrastructure and logistics gaps, and cluster approach to exports.

As it will be a centrally sponsored scheme, the Directorate General of Foreign Trade (DGFT) has proposed that the Centre pays 60% of the estimated cost, with the rest borne by the respective states.

Progress Made- Districts as Export Hubs

State Export Promotion Committee (SEPC) has been constituted in all the 36 States/UTs

District Export Promotion Committee (DEPC) has been constituted in all the 36 States/UTs.

Products/Services with export potential have been identified in all 733 Districts across the country (Including Agricultural & Toy clusters and GI products in these Districts).

State Export Strategy has been prepared in 28 States/UTs.

State Nodal Officers/Export Commissioners are nominated in 34 States/UTs.

DEPC meetings has already been conducted in 679 Districts

Draft District Export Action Plan (DEAP) has been prepared by the RAs of DGFT for 497 Districts out of which 112 are formally notified by DEPCs.

A web portal to monitor the progress of District Export Action Plan in all the Districts has been developed for updating the progress made.

Toy manufacturing clusters have been identified in 12 Districts.

State-specific Agriculture Export Plans with focus on agricultural exports have been prepared by 16 Sates/UT’s.

47 product-district clusters have been identified under the Agriculture Export Policy (AEP) for promoting export-oriented production.

These apart Virtual global outreach event/Buyer Seller meets; Sensitization Workshops; Export promotion events are being organized. State specific export brochures are being prepared.

Additional attributes in the Shipping Bill have been incorporated from 15th February, 2020 to capture District and State of origin of goods exported.  (circular No 09/2020; 5th February, 2020)

ICEGATE has started generating District wise export data from September 2020 onwards. This data will act as a baseline indicator for measuring export performance in the Districts.

Way Forward

Support Local Exporters  : Local Government Bodies should be involved in the implementation of the District Export Action Plan. It include specific actions required to Support Local Exporters or Manufacturers in producing or manufacturing identified products in adequate quantity and with the requisite quality, for reaching potential buyers outside India, thereby Creating Economic Value.

Strengthening Infrastructure & Logistic Network :  Lacks sufficient  Infrastructure  is a Major Challenge being Faced by Exporters specially at District and Sub-district Levels. Focus should be to Develop Robust Infrastructure Network – Transport & Logistics Facilities – Road, Rail, Ports & Dry Port Connectivity and their Linkage to Manufacturing Hubs or Clusters, Warehouses, Testing Labs, Certification Centers, Uninterrupted Power Supply, Reliable Internet Facilities  etc. that will help Indian exporters compete in the Global Market more Competitively.

Capacity Building : Efforts should be undertaken on capacity building of manufacturers, entrepreneurs and small exporters on complex Procedures, Documentation and Export Compliances thereby facilitating Export of Goods and Services.

Promote Export Dynamism : Export growth can Stimulate Economic Growth in a variety of ways. Encourage Product Specialization, Product Innovations, Creative Developments, Support to Overcome Size Limitations and achieve Economies of Scale, Global Market Access.

Role of e-Commerce and Digital platforms: E-commerce will allow tier-II and tier-III manufacturers to be a part of global marketing platforms. Digitalization improve Export Competitiveness.

Role of Financial Institutions : Financial Institutions such as the National Bank for Agricultural and Rural Development and the Small Industries Development Bank of India should take a Leading Role to easily Provide Credit to Traders and Manufacturers.

Details can be Viewed in YouTube

Conclusion

The outcome will be dependent on the implementation of District Export Action Plans (DEAP) that will lead to improvement in trade specific ecosystem within the districts. This will support and enhance export logistics and infrastructure, disseminate information to support scaling up of local businesses and provide ease of access to the exporters in the form of branding, packaging, testing, certification etc. to make them export competitive.

The quantifiable targets identified in the DEAPs will guide the various government agencies both at the Center and the State/UT to work collectively to resolve issues faced by the exporters of the District.

In the next 5 years, it is targeted that export growth of double digits is registered from 350 Districts of the country, with significant growth in the exports of identified products/services from each District.

References:

“Districts as Export Hubs”  – https://exporthubs.gov.in/districts-export-hubs.php

Districts as Export Hubs – Ministry of Commerce & Industry https://commerce.gov.in/wp-content/uploads/2021/03/Devolping-Districts-as-Export-Hubs.pdf