The state government of Kerala has formulated a preliminary Kerala Export Promotion Policy with the aim of fully unleashing the potential of the state’s exports.
This policy intends to empower exporters, establish new avenues for trade, and position Kerala as a favoured destination for international business partnerships. The draft policy, created by the Kerala State Industrial Development Corporation (KSIDC) on behalf of the Industries and Commerce department, suggests various frameworks encompassing financial incentives and institutional support for exporters.
Under this proposal, exporters can benefit from fiscal incentives such as the Export-based Capital Investment Subsidy, providing a subsidy of 35% of the capital investment cost (up to ₹2 crore per entity).
Additionally, there is the Export Infrastructure Support, offering a one-time subsidy of 25% of the infrastructure investment (up to ₹50 lakh per entity).
Furthermore, the policy introduces the Export Turnover-based Incentive, granting exporters a 1% incentive of the Free On-board Value (FOB) value (limited to ₹1 crore annually for three years).
The draft policy identifies 12 areas of high-growth potential, including spices, horticulture and agriculture produce, marine products, processed food products, engineering goods, chemicals, textiles, defence and aerospace, electronics, Ayurveda and pharmaceuticals, and services such as IT and healthcare.
The KSIDC has encouraged stakeholders and the public to offer suggestions on the draft policy, which is accessible on their website. It is expected that the policy will be approved by January 2024 and come into effect on April 1, 2024.
