Incorrect assessment of annual export performance costs Odisha some ASIDE funding
Updated: Apr 14, 2014 02:50:01pm
Bhubaneswar, Apr 14 (KNN) Owing to incorrect assessment of annual export performance, Odisha will be losing considerable funds of the Central Government which is given through the scheme, Assistance to States for Infrastructure Development of Exports (ASIDE).
The objective of the ASIDE scheme is to involve the States in the export effort by providing assistance to them for creating appropriate infrastructure for development and growth of exports.
Such involvement will be based on the projectised approach and projects are to be prioritized by States / UTs to address the critical link both at the point of production and the point of evacuation in the industrial cluster, largely within the contour of the first mile and the last mile consideration.
If only Odisha had been aware of it annual export details, it would not have lost a considerable amount of funding through ASIDE, media reports said, quoting the Union Ministry of Commerce.
According to an official from the Ministry, the export performance had dropped from around Rs 17,000 crore to Rs 11,000 crore during the last two years owing to a sharp fall in iron ore export from the state. However the amount calculated was much less than the actuals.
The export performance of the State needs to be properly calculated taking into account exports of the products produced in the State and exported from points situated outside it. To that end States need to calculate the correct export performance figure.
Exports have come to be regarded as an engine of economic growth in the wake of liberalization and structural reforms in the economy. The global economic scenario continues to be bleak with India witnessing slowdown in exports with our traditional partners. Under the circumstances, we need to set in motion strategies and policy measures which catalyze growth of exports in several different sectors as well as in newer markets, ASIDE guidelines said.
“In view of our remarkable achievements in the foreign trade during 2004-09, the Foreign Trade Policy 2009-14 has envisaged two milestones: First, to double India’s exports of Goods and Services by 2014 by achieving an annual export growth of 15 per cent with an annual export target of USD 200 billion by March, 2011 and achieving the high export growth path of around 25 per cent per annum in the remaining three years i.e. upto 2014 and Secondly, to double India’s share in global trade by 2020,” it said.
Several studies were made thereafter in this context namely “ Mid-Term Appraisal of performance under ASIDE Scheme”, “ Strategy for doubling Exports in next three years(2011-12 to 2013-14): Department of Commerce, Government of India”, “ India’s Infrastructure needs by 2014 & 2020: In view of Foreign Trade Targets”, Sector Specific Study conducted by Federation of Indian Chambers of Commerce and Industry (FICCI), June 2011 etc.
In the light of above studies and then findings, ASIDE guidelines have been accordingly realigned. While the responsibility for promotion of exports and creating the necessary specialized infrastructure has largely been undertaken by the respective Ministries / Departments of the Central Government, the role of the State Governments / UT Administrations is critical from the point of view of boosting production of exportable surplus, leveraging available and emerging opportunities in the global market.
Herein the State Governments / UT Administrations may provide the infrastructural facilities such as land, power, water, roads connectivity, pollution control measures and a conducive regulatory environment for production of goods and services.
It is therefore felt that coordinated efforts by the Central Government in cooperation with the State Governments / UT Administrations are necessary for development of infrastructure for export promotion.
The proposed infrastructure will cover 1st mile (at the point of production) and last mile (the point of evacuation) sector specific infrastructure requirement which are not reflected either in the State Plan or the other Central Government Agencies. (KNN/ES)
The objective of the ASIDE scheme is to involve the States in the export effort by providing assistance to them for creating appropriate infrastructure for development and growth of exports.
Such involvement will be based on the projectised approach and projects are to be prioritized by States / UTs to address the critical link both at the point of production and the point of evacuation in the industrial cluster, largely within the contour of the first mile and the last mile consideration.
If only Odisha had been aware of it annual export details, it would not have lost a considerable amount of funding through ASIDE, media reports said, quoting the Union Ministry of Commerce.
According to an official from the Ministry, the export performance had dropped from around Rs 17,000 crore to Rs 11,000 crore during the last two years owing to a sharp fall in iron ore export from the state. However the amount calculated was much less than the actuals.
The export performance of the State needs to be properly calculated taking into account exports of the products produced in the State and exported from points situated outside it. To that end States need to calculate the correct export performance figure.
Exports have come to be regarded as an engine of economic growth in the wake of liberalization and structural reforms in the economy. The global economic scenario continues to be bleak with India witnessing slowdown in exports with our traditional partners. Under the circumstances, we need to set in motion strategies and policy measures which catalyze growth of exports in several different sectors as well as in newer markets, ASIDE guidelines said.
“In view of our remarkable achievements in the foreign trade during 2004-09, the Foreign Trade Policy 2009-14 has envisaged two milestones: First, to double India’s exports of Goods and Services by 2014 by achieving an annual export growth of 15 per cent with an annual export target of USD 200 billion by March, 2011 and achieving the high export growth path of around 25 per cent per annum in the remaining three years i.e. upto 2014 and Secondly, to double India’s share in global trade by 2020,” it said.
Several studies were made thereafter in this context namely “ Mid-Term Appraisal of performance under ASIDE Scheme”, “ Strategy for doubling Exports in next three years(2011-12 to 2013-14): Department of Commerce, Government of India”, “ India’s Infrastructure needs by 2014 & 2020: In view of Foreign Trade Targets”, Sector Specific Study conducted by Federation of Indian Chambers of Commerce and Industry (FICCI), June 2011 etc.
In the light of above studies and then findings, ASIDE guidelines have been accordingly realigned. While the responsibility for promotion of exports and creating the necessary specialized infrastructure has largely been undertaken by the respective Ministries / Departments of the Central Government, the role of the State Governments / UT Administrations is critical from the point of view of boosting production of exportable surplus, leveraging available and emerging opportunities in the global market.
Herein the State Governments / UT Administrations may provide the infrastructural facilities such as land, power, water, roads connectivity, pollution control measures and a conducive regulatory environment for production of goods and services.
It is therefore felt that coordinated efforts by the Central Government in cooperation with the State Governments / UT Administrations are necessary for development of infrastructure for export promotion.
The proposed infrastructure will cover 1st mile (at the point of production) and last mile (the point of evacuation) sector specific infrastructure requirement which are not reflected either in the State Plan or the other Central Government Agencies. (KNN/ES)
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