With global headwinds affecting exports, the Union Budget is expected to announce a Rs. 2,500 crore (US$ 303.14 million) scheme to develop 50 districts as export hubs. The programme will assist domestic producers in these districts in scaling up production and finding potential buyers outside of India.
The government will select 50 districts through a challenge under the proposed scheme, and each will receive Rs. 50 crore (US$ 6.06 million). The districts’ plans for exports, efforts to fill infrastructure and logistics gaps, and cluster approach to exports will be evaluated.
The ‘districts as export hubs’ plan will go for union cabinet approval with the department of commerce likely to move the note to the cabinet in the coming weeks.
“We are trying to make it a part of the upcoming foreign trade policy…the finance ministry has given clearance to take up 50 districts in a pilot phase. We will move the proposal to the cabinet soon,” said a government official.
“We were proposing 200 districts of the total 750, of which the department of expenditure has approved 50 in the first phase, and they have said that subject to the good performance of these 50, another 150 will be considered,” a government official said.
It amounts to an expenditure of Rs. 1,500 crore by the Centre, if one goes by the Rs. 50 crore per district sought by the DGFT. Due to the fact that it will be a centrally sponsored scheme, the Directorate General of Foreign Trade (DGFT) has proposed that the Centre pay 60% of the estimated cost, with the remaining burden falling on the respective states.
Since FY17-18, the department of commerce has also been implementing the Trade Infrastructure for Export Scheme, with the goal of assisting central and state government agencies in the creation of appropriate infrastructure for export growth.
