The Tamil Nadu Export Promotion Strategy 2021 (EPS 2021) was released on Wednesday by Chief Minister MK Stalin with an aim to increase exports from the State to $100 billion by 2030 from the current $26 billion. This is in alignment with the State’s target of becoming a $1 trillion economy by 2030. Its GDP was $300 billion in 2020-21.

EPS 2021 says that the State’s strengths in exports and its established infrastructure for exports serve a ‘bedrock’ for attracting investors to the State. This, in turn, acts as a catalyst for trade. There is a need for an export promotion strategy to focus on export diversification and export dispersion - identifying districts as export hubs.

The State’s export basket is highly diversified with the top ten products contributing 70 per cent of the export share. The State, according to studies, has an estimated untapped export potential of ₹1.6 lakh crore.

Also read: TN set to announce Export Strategy Policy

To encourage exporters, the State government’s approach will be along the channels to promote dispersion of export hubs in the State and diversification of the State’s export basket. It will be augmented by export promotion activities. The measures would include both soft and hard interventions such as marketing assistance, annual export awards, policy support and infrastructure development. The State has also identified textiles, automotive, leather, electronics & electrical equipment, general machinery and food processing as export champion sectors with interventions for each sector, says the EPS 2021 released at the Tamil Nadu Exports Conclave.

Economic employment enclaves

The government aims to undertake a balanced regional development in the State through a mix of infrastructure upgradation in existing export hubs and the development of new economic employment enclaves. The government in a coordinated effort with various departments, including highways and ports, transport, energy, housing and urban development, will provide common infrastructure and utilities in these enclaves and ensure they have ‘excellent’ infrastructure connectivity.

In the first phase, two such enclaves will be set up-at Manellore (6,000 acres) and Thoothukudi (5,000 acres)- by the State Industries Promotion Corporation of Tamil Nadu on the lines of globally recognised eco-industrial park frameworks. They will be designed to improve the socio, economic and environmental performance of the residential manufacturing units.

The enclaves will be demarcated regions with the nearest district boundaries at a distance of 60 km from the key export gateway. They will have industrial parks with an area of at least 5,000 acres with an annual export of ₹10,000 crore and employment potential of 1 lakh jobs.

Export hubs

The State will strengthen the export hubs in places like Chennai, Kanchipuram, Hosur, Tirupur, Karur, Madurai, Ambur, Thoothukudi and Pollachi, by supporting infrastructure development. Each hub will be eligible for reimbursement of 25 per cent of the cost of setting up export-related common infrastructure projects or infrastructure projects servicing export-oriented industrial clusters like industrial housing, skilling centres and testing centres with a ceiling of ₹10 crore per export hub.

Export diversification

Export organisations that achieve the threshold level of value-addition creating new/additional export capacities on or after January 1, 2021, will be eligible for value-added payroll assistance in the form of reimbursement of 5 per cent of annual payroll cost for employees for a period of three years in proportion to the value addition (ceiling of ₹1.8 crore per annum). A reimbursement of 50 per cent cost of quality certifications like ISO that are required specifically for exports up to a cost of ₹2 crore will be provided.

The State will set up an exports portal to provide a comprehensive solution for queries and grievances of exporters, the EPS 2021 said.

Stalin in his speech said that while Made in India products are already available across the world, it is time now that products under the brand Made in Tamil Nadu should also be available globally.

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