Geographical location plays a significant role in determining trade competitiveness and overall economic growth. With Haryana’s successful transformation from a barren land to a thriving export hub, attention is now shifting towards Punjab. While Haryana thrived due to its proximity to the National Capital Region (NCR), Punjab’s landlocked position creates higher trade costs and challenges in transit. To address this, Punjab must prioritize overcoming geographical barriers and regional disparities to foster balanced economic growth.
Unlocking Punjab’s Export Potential:
Punjab’s untapped potential lies in its unique products across districts, making identification crucial to unlocking local potential, fueling economic growth, generating employment, boosting rural entrepreneurship, and enhancing exports. Districts as Export Hubs initiative, a part of India’s Foreign Trade Policy 2023-28, aims to identify potential export products and services in Punjab’s districts, enhancing institutional mechanisms to promote them. This strategy highlights the need for active participation from all districts to support the export growth of local goods and services.
Strategies for Success:
To ensure the success of the Districts as Export Hubs Initiative, several strategies have been proposed. These strategies include establishing a robust institutional framework, identifying potential export products, building the capacity of new exporters, conducting outreach programs for export promotion, addressing infrastructure and logistics bottlenecks, and coordinating government schemes to support these initiatives. This comprehensive approach aims to fully realize India’s potential for foreign trade and establish the country as a major player in the global market.
Streamlining Processes:
To stay competitive, Punjab must prioritize streamlining processes. Permission must be granted for bilateral trade flow through Pakistan Territory to Middle-East Countries, CIS Nations to Europe, and the US, further enhancing trade competitiveness. Additionally, the establishment of a Directorate of Exports in the state will synchronize state and centre export policies and serve as a coordination point for exporters. Creating a separate customs code for e-commerce shipments aligns with emerging channels and expedites merchandise deliveries, reducing costs.
Boosting Export Orders:
To boost export orders for high-potential product categories like engineering goods, chemicals, telecom equipment, and processed food items, market intelligence development, MSME training, and export order fulfilment facilitation are crucial. These actions will ensure that Indian exporters stay ahead of the competition and capitalize on global demand.
Empowering Farmers and MSMEs:
To enable farmers and MSMEs to benefit from export opportunities, focusing on innovation and technology utilization at the district level is key. Creating a district-level ecosystem that enhances export competitiveness, reduces transit and transaction costs, and provides platforms for global reach will promote local farmers and small entrepreneurs. This approach ensures a win-win situation for all stakeholders.
Effective Implementation:
While State and District Export Promotion Committees exist, their effectiveness in disseminating market intelligence, improving quality standards, and providing access to international certifications is currently limited. Monitoring export performance at the district level and implementing District Export Action Plans becomes crucial to identifying goods and services for export promotion, employment generation, and revenue growth.
Conclusion:
Unlocking the export potential of Punjab’s districts is a critical step towards achieving balanced economic growth. By focusing on geographical advantages, overcoming trade challenges, and actively participating in export promotion activities, Punjab can harness its unique products and become a noteworthy player in the global market. With the Districts as Export Hubs Initiative and associated strategies, Punjab can pave the way for a prosperous future, generating employment, boosting rural entrepreneurship, and driving local economic growth.
