India to Increase Exports At District Levels
The 5th largest economy of the world was hit really hard during 2020. If the corona-pandemic was not enough to cause damage to the Indian economy, the protest by farmers served as a low blow. The protest of the farmers however continues to date, but India is thinking of ways to get back on its feet.
The Commerce Ministry of India is planning to increase its exports on the district level according to the proposed foreign policy. Reportedly the Ministry is focusing to increase trades of small businesses and farmers.
A Commerce Ministry official on insurance of identity to be kept hidden provided some inside news about the foreign-trade policy. He informed that the first draft would be ready by 15th February then will be kept pending till consultation with Finance-Ministry. After consultation with Finance Ministry, the foreign trade policy will be released on 31st March.
The policy is reported to provide assistance to small exporters of district level and provide them information. The policy will be promoting farmers, artisans, handicrafts, and cottage industries and also reducing their transactional costs for exports.
The official also informed that the initiative to develop district export hubs also included making export strategy by each state. The states will be making strategies suitable to each district as per their products and service. The states will also be promoting their businesses by establishing export promotional centers and action plans for district exports. The policy also emphasizes states for identifying agricultural clusters he informed.
The policy suggested that an institutional mechanism will be constituted to establish district export promotion committees headed by the district collectors. The institute will be co-chaired by the designated officer by regional DG foreign trade with few other committee members. The main responsibility of these institutions will be to prepare and ensure the action plans derived for locally popular products. The district-level institutions will be assisted by the stakeholder members.
The ministry of commerce will be implementing its plan on districts with the help of regional DG foreign trade. The Ministry will take forward its plans by following this strategy in a phased manner.
Indian Supreme NarinderModi first shed light on this idea in 2019 in his speech on Independence Day. He said that each of India’s districts had potential equal to that of a small country. She argued why each district should be brought to a state-level for trading purposes. He added that each district had its own specialties in the field of handicrafts and other unique products.
This policy is likely to execute the idea envisioned by the Supreme of India. It is to be kept in mind that India is one of the largest exporters in the world. India is also running to replace China as a manufacturing hub in the world. The local industrial promotion policy might help India to get closer to that target as well.