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Maharashtra, Gujarat corner 46% of India’s exports: study

A study by industry lobby Assocham has said Gujarat and Maharashtra account for 46 per cent of the country’s merchandise exports. The share of the top five — including the next three best-performing States: Tamil Nadu, Karnataka and Andhra Pradesh — is over 69 per cent of India’s entire export earnings, the study said. This finding is based on the analysis of data between 2007-08 and 2014-15, Assocham said.

Maharashtra became the best-performing State by shipping goods worth $72.83 billion in 2014-15. In the same period, Gujarat exported products worth $ 59.58 billion while Tamil Nadu was the third largest sourcing State with exports worth $27.47 billion.

“Though Gujarat and Maharashtra have traditionally dominated the export business because of advantage in terms of coastline, their growth rate has not been as good as Uttar Pradesh and Haryana, who are catching up despite being land-locked,” the study said.

“On a low base as compared to the best-performing States, UP registered a growth of 18.3 per cent at a compound level in 2014-15. Haryana reported a growth of 14.4 per cent. For Gujarat the compound annual growth rate was eight per cent while for Maharashtra it was 7.2 per cent.”

Land-locked States, including Punjab, Rajasthan and Madhya Pradesh, have to focus on massive improvement in basic infrastructure such as roads, rail and airports to cut the transaction cost to stay competitive in an otherwise choppy international market.

Special Export-processing Zones (SEZs) have played an important role in promoting exports from the better-off States. “For instance, Gujarat has been highly successful in tapping the potential of SEZs within its jurisdiction. Another noteworthy aspect is that almost three-fourths of operational SEZs are located in six States: Maharashtra, Gujarat, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.” The study said that cost and efficiency of the transport system was of paramount importance for staying competitive in export markets. It also said that many States in the hinterland and in the North-East were finding it difficult to enter the export market because of poor logistics and lack of conducive trade environment.

“Current indirect tax structure unmakes India, by fragmenting Indian markets along State lines. This has the collateral consequence of undermining ‘Make in India,’ by favouring imports and disfavouring domestic production and exports. The Goods and Services Tax would rectify it not by increasing protection but by eliminating the negative protection for imports,” the study said.

Tamil Nadu was

the third largest sourcing State with exports worth $27.47 billion

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Printable version | Nov 27, 2021 7:36:25 AM |

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