Kerala needs to streamline efforts for developing an export basket containing electronic, electrical, and engineering products for which world demand is growing, according to a study.
The study also found that most of the exports from Kerala were from primary and low technology sectors and representation of high value items was minimum.
Vegetable products, animals and fish together form about 50 per cent of the exports from the state.
The Study report 'Export Competitiveness of Kerala' by the Kerala State Industrial Development Corporation, (KSIDC) and the Federation of Indian Export Organisations(FIEO), was prepared in the context of the state losing its dominance in some of the major agricultural sector exports.
It also lists out various new opportunities available to Kerala for MSME focused industrial growth.
The report was released today by Industries minister, A C Moideen today by handing over a copy to Additional Chief secretary (Industries), Paul Antony.
It classifies products from the state into High, Medium and Low growth depending on world demand and the state's competitiveness and recommends various initiatives to encourage High and Medium potential products.
It also proposes with actionable strategies to address the weaknesses in Kerala's exports. As part of the initiative, 58 products clusters that account for 90 per cent of Kerala's regular exports were studied and their growth prospects analysed.
The analysis was based on parameters such as compounded annual growth rates, revealed comparative advantage(RCA), sector wise performance and skill and technology content.
The RCA analysis found that 19 items in Kerala's export basket were competitive in the world market.
The state has competitive lines in spices, essential oils, rubber related and carpet products only. But these items accounted for just 20.43 per cent of the state's export revenues in 2014.
The study identifies sectors such as marine products, foodstuff, plywood, textile, rubber, carpets and medical instruments as having potential for diversification.
Electronic items, machinery and parts, pharmaceutical items, medical equipments, value added chemicals, plastic products and essential oils are the "Fortune Changers".
"Front Runners" contain items such as jewellery, rubber products, coir products, wood products especially plywood, textiles and automobile components.
"Favorites" represent traditional products such as coffee, tea, spices, shrimps, natural gums, coconut, coconut oil, marine preparations, meat products, foodstuff and beverages, the report said.
Kerala is the 7th largest exporting state in India with a contribution of 4.8 Billion USD during the year 2015-16.
The study gives a road map to the state government to achieve its target of 5 per cent share in India's exports in the next five years.
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