At a time when Government of Maharashtra is aiming to grow the size of the state economy to USD 1 trillion by 2025, MVIRDC World Trade Centre Mumbai has released a research study on ‘Accelerating Maharashtra’s Export Competitiveness’.
The release of this study is also timely when Government of India is devising a comprehensive strategy to enhance the share of India’s total exports to 40% of GDP by 2025 from the current level of about 18%, especially since Maharashtra contributes around one-fourth of India’s total exports.
The research study emphasises on the need for a balanced regional development in Maharashtra, besides highlighting the need to have a dedicated export policy for the state. Among other policy measures, the study suggests setting up a four-tier institutional mechanism with representation from state and district export promotion councils from every district.
The study calls for renewed policy thrust to promote skill development, research, innovation and entrepreneurship. The study recommends the state government to promote awareness e-commerce as an effective tool for accessing global markets among MSMEs.
The study, conducted by MVIRDC World Trade Centre Mumbai, was unveiled at the 7th edition of the organisation’s flagship event ‘Global Economic Summit’ on February 23, 2018 at World Trade Centre Mumbai.
The study was released by Gen. (Dr.) V.K. Singh (Retd.), Hon’ble Minister of State, Ministry of External Affairs, Government of India, Mr. Jayakumar Rawal, Hon’ble Minister, Employment Guarantee Scheme and Tourism Development, Government of Maharashtra and Mr. Prafulla Samal, Hon’ble Minister for Social Security & Empowerment of Persons with Disabilities, Women & Child Development & (Mission Shakti), Micro, Small & Medium Enterprises, Government of Odisha.
The study attempts a meticulous inter-state analysis of the investment trends in Maharashtra’s nine major export-oriented industries. The analysis suggests that while Maharashtra shows good investment potential in industries such as textile, food and agro-based products, drugs and pharmaceuticals, and plastic products, the state is a relatively slow runner in heavy industries such as petroleum products, metal and metal products and machinery.
The study also critically examines Maharashtra’s infrastructure-readiness compared to other states on key parameters such as availability of power, road density, lease rentals, export infrastructure etc. The study suggests the need to enhance per capita availability of power, reduce cost of power and bridge power deficit during peak hours.
The study identifies that while the state fares well in terms of export infrastructure such as container freight stations, inland container depots and notified and exporting special economic zones, Maharashtra needs to promote export-oriented units to set shop in the state. Maharashtra has a little above 50% of the export oriented units compared to other leading states such as Karnataka and Tamil Nadu.
The study emphasises the need to augment Maharashtra’s cold storage infrastructure to support export of perishable farm commodities.
Other key highlights of the study are review of government policies such as ease of doing business, VAT on petroleum products, priority sector lending etc. in Maharashtra vis-à-vis other states. The study has put forth actionable recommendations for policymakers, both in the central and the state government and is backed by opinions from experts.
Mr. Kamal Morarka, Chairman, MVIRDC World Trade Centre Mumbai said, “MVIRDC World Trade Centre Mumbai always promotes India’s international trade through cutting-edge research, market analysis and excellent trade promotion services. I am confident that this book will serve as a useful guide for policymakers, academicians and industry officials.”
During the event, distinguished guests also released the ‘India MSME Report 2017’ prepared by the Institute of Small Enterprises and Development, Cochin.
In Photo - From (L-R): Gen. (Dr.) V.K. Singh (Retd.), Hon’ble Minister of State, Ministry of External Affairs, Government of India, Mr. Kamal Morarka, Chairman, World Trade Centre Mumbai, and Mr. Prafulla Samal, Hon’ble Minister for Social Security & Empowerment of Persons with Disabilities, Women & Child Development & (Mission Shakti), Micro, Small & Medium Enterprises, Government of Odisha.