Unveiling the state’s export promotion strategy on Wednesday this week, chief minister M K Stalin had set out a target for the state to achieve $100 billion in exports by 2030. This requires the state’s exports to jump four-fold in just over eight years from the present $26 billion and hence the need to identify champion sectors for special focus as part of the strategy.
Tamil Nadu boasts of a diversified export basket in various sectors including automobile and components, machinery and instruments, electronic hardware, software, readymade garments and accessories, yarns, fabrics and leather products. Manufactured goods account for a significant share of the state’s economic growth and exports and hence it has traditionally focused on exportoriented manufacturing to foster high-value production.
According to the export policy, the value of merchandise from Tamil Nadu stood at Rs 11.55 lakh crore ($168.5 billion) between 2015-16 and 2020-21. In FY2020-21, Tamil Nadu accounted for 9% of the national exports.
Becoming a key export region and sustaining that position require the state to be competitive in champion sectors and particularly in specific segments of these sectors, export promotion strategy noted. Hence, the champion sectors of the state for export promotion have been identified based on parameters such as production, employment, trade, competitiveness and investment.
The identified champion sectors also revealed a comparative advantage for Tamil Nadu, where the state is exporting more than its fair share. Global trade patterns reveal that large economies like the US, Europe, Japan and Canada are the most important export markets. While this is true with the champion sectors identified by the state, it is critical for the state to aid manufacturers in identifying and connecting with partners, understanding and complying with requirements and efficiently exporting to these regions.
To back Tamil Nadu’s efforts on the export front, a State Export Promotion Committee is to be constituted. The committee will be headed by the chief secretary and will include secretaries to government of departments concerned and related to identified focus areas of exports, besides a couple of others
Source : TOI
