KOCHI: The Kerala government plans to incorporate suggestions from leaders of the state’s commercial sector while preparing a detailed memorandum to the Centre on measures to counter the fallout from the US decision to impose a 50% duty on imports from India, Industries Minister P Rajeeve said on Monday.
Addressing a meeting convened by the Industries Department with representatives from export-oriented industries, Rajeeve warned that the development could impact Kerala’s economy, even though the state accounts for only about 1% of India’s exports to the US.
“True, the state has limitations on what it can do, but we want to work by understanding the needs and stance of the export-oriented industry sector,” he said, assuring the government’s commitment to “do everything” within its powers. Calling the crisis “a clear example of the failure of globalisation,” the minister urged unity to tide over the situation.
Rajeeve also stressed the need to tap the domestic market more effectively and suggested using the Malayali diaspora platform Loka Kerala Sabha to explore new global markets.
Industry representatives described the US decision as “very serious” and pressed for the development of parallel markets instead of waiting for the crisis to resolve. Noting that Malayalis are present in nearly every country, they called for a state-level version of the Export Promotion Council of India to help locate new opportunities.
The meeting, attended by over 100 representatives from various sectors, welcomed the state’s initiative to engage with exporters. Participants pointed out that the Union government had cut several export subsidies in recent years and urged the restoration of the RoDTEP (Remission of Duties and Taxes on Export Products) rate to its previous level of 4%, saying it would help mitigate the crisis “to some extent.”
They also proposed appointing a nodal officer from the Kerala State Industrial Development Corporation (KSIDC) to facilitate access to Central schemes, and sought concessions on electricity rates as well as subsidies under labour welfare schemes.
Representatives warned that banks had become reluctant to sanction loans in the current scenario and urged the Industries Department to intervene. They cautioned of potential large-scale job losses in the fishing and seafood processing sectors, with the seafood industry demanding diesel subsidies for fishermen and alternative employment for women workers in processing units.