Kolhapur Among 59 Districts With Untapped Export Potential: Exim Bank

Mumbai, Jul 10 (KNN) Kolhapur has been identified as one of 59 districts in India with significant untapped export potential, according to Deepali Agarwal, Deputy Managing Director of the Export-Import (Exim) Bank.

The statement was made during a programme organised by the Shiroli Manufacturers Association in Kolhapur, where Agarwal presented findings from a comprehensive study conducted by the bank.

The research revealed that fewer than 2 per cent of India's districts contribute approximately 40 per cent of the country's total exports, indicating substantial opportunities in what the bank terms ‘missing middle export districts.’

These districts are characterised by export volumes ranging between USD 1 billion and USD 5 billion. Out of India's 750-plus districts, 59 fall into this category, with Kolhapur being prominently featured among them.

According to Exim Bank data, Kolhapur's major export products in 2024-25 included textiles, machine gears, automotive components, jewellery, refined sugar, rice, and casting articles.

The district, recognised as one of Maharashtra's agriculturally advanced regions, has emerged as a leader in manufacturing engineering products, refined sugar, and textiles.

Export figures from Kolhapur show notable fluctuations over recent years. The district recorded exports worth Rs 95.1 billion in 2021-22, which decreased to Rs 93.7 billion in 2022-23.

A significant decline occurred in 2023-24, with exports dropping to Rs 58.9 billion, primarily attributed to the sugar export ban. However, recovery was evident in 2024-25, with exports increasing to Rs 61.8 billion.

The data demonstrates growing diversification in Kolhapur's export portfolio. In 2024-25, the top 10 products accounted for approximately 42 per cent of the district's total merchandise exports, representing Rs 25.7 billion in value.

This diversification reflects the district's evolving industrial landscape and reduced dependence on traditional export commodities.

Agarwal highlighted the international demand for silver jewellery from Hupari in Kolhapur, noting that the renowned Kolhapuri Saaj, along with other silver ornaments and idols, finds markets in countries including the United States and Australia. This traditional craft sector represents a significant component of the district's export economy.

To address the potential of tier-II cities like Kolhapur, Exim Bank has developed the Grassroots Initiative and Development (GRID) programme.

This initiative focuses on supporting various stakeholders including artisans, craftsmen, weavers, clusters, self-help groups, farmers' producer organisations, and micro-enterprises.

The programme aims to harness the export potential of these regions through targeted support and capacity building.

As part of its assistance efforts, Exim Bank has provided support to SMAK (presumably a local manufacturing association) for establishing a precision 3D scanning solution and casting simulation technology facility at a common facility centre.

This technological advancement is expected to significantly benefit small-scale manufacturing units in the region by enhancing their production capabilities and quality standards.

(KNN Bureau)