EXPORT POLICY (Draft) GOVERNMENT OF UTTAR PRADESH 2015-20

 EXPORT POLICY(Draft)
 
FOR
GOVERNMENT OF UTTAR PRADESH 

2015-20

Preamble
 
Fourth Largest  in Area  in the Country.
Ø More than 20 crores population.
Ø Agriculture one of the thrust areas.
Ø 3rd largest Economy of the country.
Ø Has 3rd highest number of MSME’s.
Ø Major sharing in country’s export in handicraft, Textile, carpets sector.
Ø Significant player in export of leather & leather goods, food processing industries (including processed meat) sugar, engineering/automobile hardware, sports good, Readymade Garments, home furnishing Made-up, gems and jewelery etc.
Ø Contributing around USD 4.296 million (2012-13) with 38% share of the regions export of software and other services as the IT hub of North India.
Ø Fourth largest in exports of electronic hardware with the sharing 13.4% and 6th largest software exporter.
Ø Separate dedicated Government body for the promotion of exports named  Export Promotion Bureau (EPB).

State’s Export Performance against India’s Export
during the year 2009-10 to 2013-14:

Year
Export of India
Export from     Uttar Pradesh
US$
(million)
INR
(Rs. in Crores)
CAGR
%
INR
(Rs. in Crores
Share in Country’s Export
CAGR
%
2009-10           
178,751
845,534
26204.07
3.09
2010-11         
489,929
1,142,922
35.17
38214.81
3.34
45.83
2011-12          
305,964
1,465,959
28.64
51225.10
3.51
34.05
2012-13          
300,373
1,634,319
11.48
59546.32
3.64
16.24
2013-14                        
313,644
1,894,182
15.90
80523.01
4.25
35.23
v  State stands 6th in merit regarding sharing in country’s export.
v  Highest annual export growth in the country during the year 2013-14 .
SWOT Analysis
Strengths
Ø  State has rich tradition of art and crafts.
Ø  Major  share in exports of carpets.
Ø  Largest share in exports of handicrafts from country.
Ø  Emerging hub of IT based industries in North India.
Ø  Availability of skilled work force.
Weaknesses
Ø  Land locked position of the state- Nearest port being 1500 km away makes transportation of the goods  up to the ports costly .
Ø  Lack of soft infrastructure such as adequate training, designing.
Ø  Less interest in traditional art work by new generation
Opportunities
Emerging trend of e-commerce .
Eastern Dedicated Freight Corridor.
Delhi Mumbai freight corridor.
Lucknow -Agra Expressway.
IT Cities at various metro cities.
Threats
Growing competition with other economies.
Less inclination towards research & analysis.
Lack of awareness about IP rights .
Need to Formulate separate export policy for state
For effective implementation of foreign trade policy  of  GoI.
Although in global scenario formulation of foreign trade policy is under jurisdiction of Government of India but the role of state Governments for its effective implementation is more significant.
Export items are local activity of the state which are directly  influenced by policies of the state governments.
Develop initiative of exports in different area such as:
Infrastructural improvement .
Value addition measures  such as design, packaging etc..
Structure the regulatory mechanism(taxation) exporter friendly.
Improvement in the working at ICD for swift dispatch for ports (specific Dadri
To promote facilitation of Cargo Handling Agents for exporters.
Vision – STATEMENT
To achieve excellence through the improvement of the quality of the products, so that to achieve the growth of exports by doubling the exports share in countries’ exports in every five year.
Mission
Providing an effective, proactive and supportive Institutional mechanism for the rapid growth of export.
Enhancing Export Competitiveness  by Operationalising  sustainable medium  term Export Promotion  Sectoral Strategies.
Building effective and competitive export Infrastructure. Objectives
To create  congenial export  environment  and high- end-infrastructure facilities.
To focus on existing exporting industries.
To encourage and provide them support  for diversification and adopting international quality norms.
To provide a conducive environment for motivating new export oriented units to set-up their base in Uttar Pradesh.
To encourage industries/traders with products having good export potential to enter the export field.To enhance value addition and quality competitiveness by bringing about  technology, design development  and  skill up gradation in the traditional export sectors.
To enhance the export potential of non-traditional sectors such as IT, ITES  and farming sector
To promote innovation for export of new value added products.
To make more Towns eligible for “town of excellence” under FTPOperational measures
Infrastructure Support Measures
Development of basic  and industrial infrastructure.
Due to delinking of ASIDE Scheme from Central Govt. , the new scheme  ”ASSISTANCE  FOR THE DEVELOPMENT OF EXPORT RELATED CRITICAL INFRASTRUCTURE”  is to be introduced by State Govt.
World class stay facility be established  in major export hubs.
 Up gradation of ICD/CFS as per transaction volume and better connectivity to rail and road network.
 In order to enable the crafts persons to source quality raw materials at a low premium,  Raw material banks may be set up.
 Design centre/design lab/Design Bank/Tool Rooms as per requirement of design of different Industries, Handicrafts and Carpets etc. will be established.
Composite testing labs accredited by international institution.
Export Parks for Meat products, Food Processing products, Handicrafts etc. will be set up  at various places of State.
To incentivise male buffalo meat production.
 “Niryat Bhawan” with a conference/meeting hall and also display halls may be established in Lucknow.
 Formation of SHG for infant/new exporters.Policy should provide infrastructure support to the handicraft, Handmade carpet, textile & Allied Sectors in terms of CFCs, ICD/CFS , Testing lab, Wood seasoning and treatment plants particularly managed by SPV’s and EPC’s
Sourcing business hubs in craft dominated areas for procurement.
Revamping of CDGI Firozabad & such institutes at different locations
Skill councils including Handicraft, Carpet and Textile should be given due support and be provided specific attention to augment quantum growth
Following Towns should be declared as a Town of Export Excellence – Moradabad, Bhadohi, Varanasi, Firozabad, Agra,  Kannauj for branding and aggressive publicity.
Projection of about 25 Cluster to develop as Mega Cluster in Five year for infrastructure support.
Sectoral Infrastructure Measures
Horticulture & Food Processing
Adopt Cluster Development approach for identified products
Implementation of product-specific protocols for export-oriented production
Support to SME sectors for implementing Food Safety Management Programme.
Creation of Fruit Fly free zones in horticulture sector
Promote Organic farming for production of safe food for exports
Creation of proper lab. infrastructure and certification
Create Cold Chain Corridors up to exit point of the State
Promote production of value-added products in food sector
Introduce food safety education at UG levelMeat and Leather Sector
Encourage rearing of Male Buffalo Calves
Promotion of UP as FMD free state
Creation of fund for technology development in leather sector
Marketing Support Measures
Creation of Export Portal of UP.
Buyer seller meets to be organized at various crafts hubs.
Focus on Market and product diversification.
WTO Facilitation Centre.
Creation of Export Portal of U.P. and authentic data base of MSMEs
WTO  facilitation Centre to be part of Export Promotion Bureau domain.
Participation in product focus fairs
Administrative Measures
 To Constitute an Umbrella Organization of Government Departments for Concerned Industries Sectors to establish coordination among various export related activities being taken up by these departments and contribute data feed back of their relevant field.
Strengthening and restructuring of Export Promotion Bureau .
To Constitute Empowered  Committee cum Advisory Board to resolve policy based issues related to Government of India.
To constitute ‘Niryat Bandhu’ to resolve state level issues/problems.
To set up District level Export Promotion  Committee for promoting exports.
Formation of UP Export Promotion Council.
POLICY BASED REFORMS
Commercial Tax-
Commercial tax will not be levied on raw material and packing material used in export production.
Concessions will be given on the trade tax imposed on the sale of special import licenses issued by the Government of India.
Appropriate procedures will be put in place to rationalise the system and remove bottlenecks pertaining different forms, inspections and other formalities.
Mandi Cess-
Abolition of ‘Mandi Cess’ in respect of Specified raw materials duly approved by State Agriculture Produce Marketing Board for export production will be considered.
PROMOTIONAL INCENTIVES
Freight subsidy- (Due to being land locked State)
Restructuring of the scheme in wake of hike in freight charges revision in rate of Freight subsidy.
Freight subsidy should be allowed for the units using the ICD situated out of state .
Restructuring of Market Development Assistance  Scheme–
Revision in volume of assistance
Inclusion of Quality certification for Social Accountability, Environment Protection, Energy Saving.
Extended assistance for buyers and seller meet.
Study tours of the representatives of exporters to various overseas markets.
 World wide branding for UP Handicraft and Hand made Carpet should be established by way of aggressive publicity and promotions.
Trade information centers to be established.
Technology upgradation subsidy should be provided.
WTO Cell should be established and WTO impact should be studiedAir Freight Rationalization Scheme-
Export of goods from Delhi Air Cargo may also be considered.
Export Award-
Restructuring of present award scheme to  cover up  each category of enterprise group and representation of product/service group in classified manner.
Branding of Specific Products/crafts of State –
Identification of potential products/crafts for GI Registration
To take up post GI activities effectively.
To establish “Uttar Pradesh” as a brand for the products being exported from the State in International exhibitions and fairs in and outside the country.
 Creating “Ease of Doing Business” Environment- 
EPB shall facilitate clearances from regulatory departments and resolve operational problems of exporters.
The Govt. will review existing legislations to assign Public Utility Status to exporting units who satisfy eligibility criteria as per relevant statistics.
Green Card- To  entitle the holder to minimum inspection and speedy clearance of all proposals by all Departments of the State Government.
Strengthening of Single Window Clearance System for obtaining various NOCs/ licenses/consents etc.
Self certification should be allowed by all departments
E-filing of all applications and time bound clearance and approval
Review of Policy related to hazardous industries for Hand made Carpet & Metal Craft units.
E-commerce in Handicrafts, Hand made Carpet and Textiles should be supported by setting up of “E-commerce Village” close to each craft cluster and tie-up with major players.
Sale to foreign tourist against foreign exchange through authorized dealer should be considered as a deemed export and such dealers be only allowed to use recognised logo of State and India
“UP Craft Mark” be introduced and propagated to enhance its quality and value.
Labour Welfare-
Provision of welfare funds for the Artisans/Skilled workers of carpets and handicrafts.
Labour welfare centres be established.
Provision of simplified and more productive rules for owner and labour vice-versa.
Simplification/Flexibility in Labour Laws to Export Units of SMEs to meet their requirement for export dominating units.
Streamlining the process of inspection of the units.
Minimum wages by category Town Infrastructure and per capita income district wise, revision will be done by taking parameters by productivity of labour and capability of employee to pay.
Seasonality category and flexible overtime hours may be accorded.
Skill Development Training-
 As shortage of skilled workers may lead to decline in exports, a strategy for the training of skilled workers under the state’s “Skill Development Mission” plan would be prepared.
To save traditional skills, provision for training of traditional crafts under Skill Development Programme. Crafts women will get specially trained.
Capacity building through intensive efforts by Skill development mission and specialized advance programmes such as marketing packaging etc. on specific export products.
Budgetary provisions

Provision of budget  for the measures  described in draft policy from State fund and creation of separate budget head account.

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