Uttar Pradesh to introduce new export policy to promote small entrepreneurs

Himanshu Vatsa | The Dollar Business

The Uttar Pradesh government is likely to bring a new policy to encourage small entrepreneurs and promote exports, Bhagwat Saran Gangwar, Minister of State for Micro Small and Medium Enterprises (MSME) in the state government, said on Tuesday. “We had a consultation with export associations and industrialists and discussed various issues. Based on information provided by them, Uttar Pradesh government has incorporated all the relevant subjects in a new policy to benefit exporters. The government is soon to bring a separate export policy to provide all kinds of support to exporters in the state,” Gangwar said at a seminar on ‘Energising Entrepreneurs for International Trade’ held in Noida, UP. The minister said that his government is planning to set up expo marts across the state, which will provide platform for entrepreneurs in small cities to showcase their products and interact with their prospective buyers from within the country and abroad. “We are already in the process of setting up a Rs 150-crore expo mart in Bhadohi. Several small marts like the one in Noida are soon to be inaugurated. One is expected to be started in Bareily. One such facility has already come up in Lucknow. We are also planning to establish a big expo mart in Lucknow on the pattern of a facility in Frankfurt,” he said. Gangwar said that there are many items produced in the state but they are not advertised and that’s why there is no buyer. “Uttar Pradesh contributes 54% of India’s total handicraft exports. We can even cross 80%, if the central government gives more facilities,” he added. The minister said that his government will send a proposal to the Centre for the setting up of an air cargo shelter in Noida. “There is a demand for cargo shelter in Noida region and we will send a proposal to the Centre in this regard. At all our container depots, we would try to give more benefit to exporters so that they get more encouragement,” Gangwar said. The event was organised by the Federation of Indian Export Organisations (FIEO) and Exim Bank. Expressing concern over India’s falling export, FIEO Director General Ajay Sahai said that India traders lose competitiveness in the international market due to high cost of credit and logistics. “Logistics cost in India is one of the highest in the world. We roughly spend 14% of our GDP on logistics, whereas in the US, this expense is around 8% and in Europe 9%. The cost of transporting one container from Lucknow to JNPT (Jawaharlal Nehru Port Trust, Mumbai) is higher than the cost of transportation from JNPT to any European ports. The impact of this cost is much more in land-locked states,” Sahai said. Amiya Chandra, Joint Director General of Foreign Trade, emphasized on quality improvement to improve India’s exports. “You have to have specialization in product, you have to have structured and planned approach, value and customer approach and total quality management approach. You have to offer package of services,” said Chandra while addressing to exporters. Around 100 exporters participated in the event which was attended by N Shanker, Executive Director of Exim Bank, Ajit M Ingle, General Manager of IDBI and senior government officials.    

June 23, 2015 | 9:04 pm IST.