Exports from Andhra touch Rs 19,500 crore

YSR wants exports to scale newer heights

Though still a long way to go, Andhra Pradesh is slowly catching up with external trade. Exports from the state during the last financial year increased to Rs 19,500 crore from about Rs 12,900 crore in the previous year.

IT exports was the major contributor to this impressive growth, which increased by 65 per cent during the same period.

Yet, the state government is worried over the poor performance of Andhra Pradesh in export trade when compared to its other southern counterparts.

"Even though Andhra Pradesh constitutes 8 per cent of the country's populations, its share in exports is just 4 per cent of the total Indian exports which is very disappointing," chief minister Y S Rajasekhara Reddy said while inaugurating the Andhra Pradesh chapter of the Federation of Indian Export Organisations (FIEO) here on Saturday.

While the Indian exports stood at Rs 4.3 lakh crore during 2004-05, south accounted for about Rs 1.21 lakh crore in the total volumes. Compared to these figures, Andhra's contribution is almost negligible.

In state's exports, IT sector occupied the first place with Rs 8,396 crore while ores and minerals stood second with Rs 3,739 crore worth exports during the period.

Other major contributors to exports include agro and processed foods (Rs 2,057 crore), drugs and pharmaceuticals (Rs 2,042 crore), engineering goods (Rs 1,826 crore) and marine products (Rs 831 crore).

Major exports from southern region include Rs 50,054.32 crore from software and electronic goods (all-India Rs 82,705 crore), Rs 15,120 crore from textiles and readymade garments (all-India Rs 50,066 crore), Rs 11,811 crore from engineering goods (all-India Rs 65,764 crore), Rs 10,942 crore from ores and minerals (all-India Rs 49,359 crore), Rs 4,140 crore from leather and leather goods (all-India Rs 10,285 crore) and Rs 4,140 crore from marine exports (all-India Rs 5,696 crore).

The chief minister said that Andhra Pradesh has an excellent export potential in garments and food processing sectors and appealed to the industrialists and traders to start their operations in these areas in the state.

In an effort to tap global export opportunities in garments and textile sector, the Andhra Pradesh government is mulling a special economic zone (SEZ) near Tamil Nadu borders in Nellore district, Reddy said.

The government is of the opinion that the location of the SEZ near Tamil Nadu borders will enable investors to utilise proximity with Chennai international airport along with the port facilities in Chennai, Vizag and Gangavaram.

Responding positively to the government's proposal, A Saktivel, chairman of FIEO southern region, who is also into textile export trade, said he will consider setting up manufacturing facilities if the SEZ comes up as promised in Andhra near Chennai.

Reddy has also promised the traders who are into export business to simplify procedures and ensure neutralisation of all levies and duties on inputs for export goods.