THIRUVANANTHAPURAM: The state needed to strengthen its competitiveness in export market through product value addition, said a study report released by Industries Department on Tuesday. Industries Minister AC Moideen launched the report titled ‘Export competitiveness of Kerala’, by handing over a copy to Additional Chief Secretary (Industries) Paul Antony.
The Kerala State Industrial Development Corporation (KSIDC) and Federation of Indian Export Organisations (FIEO) conducted the study, which gave a roadmap to the state government to achieve its target of a 5 percent share in India’s exports in the next five years. The study identified strategic clusters of products capable of improving export competitiveness and providing higher employment opportunities on the basis of prevailing socio-economic framework. It also identified sectors such as marine products, foodstuff, plywood, textile, rubber, carpets and medical instruments as having potential for diversification. Considering the global demand in consumer electronics, the study suggested inclusion of items from three Es- electronic, electrical, and engineering, in the export basket.
The study was conducted in the context of the state losing its dominance in some of the major agricultural sector exports. The study found that most Kerala exports were from primary and low-technology sectors and representation of high value items was minimum. Vegetable products, animals and fish together formed about 50 percent of the state’s exports. It found that 19 items in Kerala’s export basket were competitive in the world market. The state has competitive lines in spices, essential oils, rubber-related and carpet products, which accounted for just 20.43% of its export revenues in 2014.
The report favoured a technology policy for time-bound upgrading of processes and machinery in major agricultural and industrial establishments in the state and called for a well-defined labour policy safeguarding interests of both workers and entrepreneurs.