Export Potential at the State-Level; A Case Study of Karnataka
Given the diversified framework different regions of India have different priority sectors and their requirements are different. In order to fulfill this, each region will engage in trade with different countries or other regions within India. In case of international trade, it is interesting to observe that, although any particular region (say a state) cannot individually trade with other countries, the trade basket of India, as a whole, will reflect different regional priorities of India. In this framework, it is challenging to find out the regional export potential in a country like India. Data regarding regional trade is not much accurate, since export data of regions are computed on the basis of the port-wise data. In this connection, a methodology is proposed in this paper, to estimate the regional export potential, considering Karnataka as a case. The existing production basket has been matched with the potential export items from India for this purpose. At the end, we shift our emphasis to the products which have export potential but have not yet achieved high export values. Considering tariff, non-tariff barriers and import penetration ratio for different countries we identified high, low, and medium potential products for the state from this set of products. It has been observed that some agricultural products like sunflower, groundnut, onion, turmeric, and silk, electrical machinery, precision engineering products have high unrealized export potential from the state to different countries. Identification of the basis of this unrealized export and the ways to enhance the export of such products were arrived at through the survey of various stakeholders.
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