Context: The Uttar Pradesh government is drafting a new export policy to boost the state’s share in India’s exports.
Uttar Pradesh Government policies aim for inclusive, sustainable, and balanced development, offering one of the best business environments and responsive policy frameworks in the country.
Objectives of New Export Policy
- To boost Uttar Pradesh’s contribution to India’s total exports, setting a target of increasing this share to 7.5%.
- In the first six months of FY25, the state exported goods worth $10.56 billion, increasing its share of India’s total exports to 4.89%.
- To reach Rs 3 trillion in merchandise exports within two to three years and is focused on improving infrastructure for the export supply chain.
- The policy will prioritize job creation and provide incentives, including marketing support, air freight subsidies, international certification subsidies, and gateway port freight subsidies.
- Uttar Pradesh plans to develop all 75 districts into export hubs by building warehouses, cargo terminals, and trucking hubs near industrial zones and expressways.
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- In the last financial year (FY24), Uttar Pradesh’s merchandise exports reached an impressive value of approximately $20.67 billion, accounting for 4.71% of India’s total export volume.
- The new policy will offer incentives for exporters, focusing on food processing, handicrafts, and One District One Product (ODOP) sectors.
- Uttar Pradesh is known for traditional industries like Banarasi silk sarees, Bhadohi carpets, Lucknow chikan embroidery, Kanpur leather goods, and Agra leather footwear.
Uttar Pradesh’s Export Performance and Government Initiatives
- UP’s Ranking in Exports: Uttar Pradesh is the 4th largest exporter in India and the top exporter among landlocked states.
- Contributions: The state contributes 16.56% of India’s handicraft exports, 10.27% of processed meat exports, 39.52% of carpet exports, and 25.5% of leather and leather articles exports.
- Export Performance Factors: NITI Aayog’s evaluation considered parameters like policy framework, business ecosystem, export performance, and export ecosystem.
- Key Export Contributors: Mobile phones, meat, and aluminum products were significant contributors to India’s exports.
- Positive Aspects for UP: Uttar Pradesh benefits from better transport connectivity (ranked 3rd in India), more cold storage facilities, higher exporter registrations, and growth in ODOP and GI product exports.
- Government Initiatives: The government is focused on implementing district export action plans, optimizing IT and pharma parks, organizing trade fairs, and facilitating affordable testing through NABL (National Accreditation Board for Testing and Calibration Laboratories).