In keeping with its image of a progressive state, the Karnataka government has announced an export promotion policy which will take the state's already high export level, accounting for 7 per cent of the country's exports, to 15 per cent by 2007.
The policy, in order to be effective, has identified the following thrust sectors: agricultural and processed food; readymade garments; electronics; information technology; biotechnology; engineering goods, handicrafts and minerals and metals based products.
Action will mostly be taken through district-level export promotion committees which will be set up.
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These will identify bottlenecks faced by existing exporters, train those exporting through merchant exporters to export directly, counsel potential exporters and prepare plans for creation of export infrastructure.
A key feature of the policy is the decision to issue green cards to exporters with a good track record so that they can carry on with their export activities with the minimum of hindrance from state government agencies.
Manufacturers, processors and 100 per cent export oriented units which have a green channel facility with the customs, an average annual export turnover of Rs 1 crore for three years and a clean record will be eligible for the card.
The card will entitle the holders to a minimum of inspection and speedy clearance from state government departments, their trucks will be quickly let through at check posts, have a single window clearance facility and a minimum of surprise visits from inspectors.
The policy proposes to use the private sector to create infrastructure to facilitate exports. Minor airports will be set up at Hubli, Mysore, Gulbarga and Bellary and minor ports at Malpe and Tadri.
A special economic zone (SEZ) has already been announced for Hassan. Two more are proposed one for electronic hardware near the new international airport at Devanahalli, and the other at Mangalore. The export park at Whitefield, Bangalore, will be converted into an SEZ.
Eight art zones for gherkins are being set up. Six food processing parks and two apparel export parks have been cleared in the sate.
High tech clusters for IT-enabled services will be set up in important districts. A permanent exhibition centre is being set up at Whitefield with assistance from ITPO.
The policy envisages several incentives for exporters. Market development assistance will be given to small and medium manufacturer and merchant exporters to participate in trade delegations and international trade fairs, to undertake market surveys and secure publicity in the foreign media.
An initial outlay of Rs 1 crore has been made for this. A brand equity fund and a market research fund, with an outlay of Rs 1 core each, will be set up under the Visvesvaraya Industrial Trade Centre which will be upgraded and converted into the Export Promotion Board of Karnataka.