Export Policy 2020–25: Aiming to Strengthen Export Ecosystem to Propel Growth
Export, being an important parameter of economic growth of a state, holds huge significance amid upheaval in global trade. With an aim to improve overall export figure and to do away all the hiccups in between, the Uttar Pradesh government has come up with export policy 2020- 25. It envisions to strengthen the policy framework which will ultimately facilitate ‘easy to do business paradigm. A gist of what the new export policy comprises and how it will create a tangible difference.
In today’s scenario, the global trade is highly unpredictable and dynamic. The product specifications and quality parameters of the product change very frequently with the demand of the buyers. To cope up with the changing trends in the international market and to scale up export figure in the State, the Government of Uttar Pradesh through its nodal agency Uttar Pradesh Export Promotion Bureau (UPEPB) is coming up with the Export Policy 2020–25.
Objective of the export policy
It aims to improve policy framework, create and upgrade the infrastructure, develop “Make in UP, Make in India Brand”, promote GI (Geographical Indication), support the Export Oriented Units (EOUs) in all possible ways. Through this policy, Government of Uttar Pradesh not only intends to increase the merchandise export but also the Service export from the State.
To provide the support to the export oriented units and give the boost to the merchandise and service export from Uttar Pradesh, UPEPB has made certain provisions in the proposed Export Policy 2020–25 that are as follows:
- Infrastructure: Export Oriented Common Facilities Centres will be setup for facilitating value addition process under Uttar Pradesh Export Infrastructure Development Scheme. UPEPB will also leverage the Government of India Schemes to develop the required infrastructure.
- Transport Subsidy: Being a land-locked state, Uttar Pradesh does not have any port. It has to send export shipments via rail/ road to Gujarat, Maharashtra and Kolkata port, which increases the cost of transportation. For example, transportation of goods from Agra to Mundhra (Gujrat) port in 20-feet dry cargo is around Rs 43,000 and in 40 feet dry cargo is around Rs 63,300. To support the EOUs and to make them globally competitive, it is necessary to provide them transport subsidy.
- Under this policy, transport subsidy will be provided on the Inland Haulage charges incurred by the exporter in transporting the goods l To encourage exports to neighbouring nations i.e. Nepal, Bangladesh, Bhutan through truck, cargo transport subsidy will be provided to the exporters.
- Electricity duty exemption: The MSME sector units, whose exports are more than 50% of their turnover, will be given exemption on electricity duty for 5 years.
- Market Development Assistance Scheme: Virtual Exhibitions/Fairs/Buyer- Seller Meets organized by ITPO/EPCs/Commodity Boards etc will also be covered under Marketing Development Assistant Scheme along with physical exhibitions/BSMs. This will support the MSMEs to explore the international market and increase their horizon of marketing.
- Incentives on Certification: For exporting in European countries, USA, UK, most of the International buyers’ demand for the Conformity European (CE), China Compulsory Certificates (CCC) etc certifications. Under this policy, exporters will get financial assistance on getting these certificates. This will also improve the process of the unit and the chances in getting more export orders.
- Research and Development Support for Intellectual Property Right (IPR): To boost innovation in the Industry, under this policy the Government will support registration to IPRs.
- Process Improvement and Ease of Doing Business: To encourage the transparency in documentation, better coordination and speed up the clearance process, following are the provisions that are proposed under this policy: –
Also Read: UP Bolstering MSMES & Rural Industries for Economic Recovery
Easing Load Carrying Limits on roads: RTO imposes heavy penalties on exporting trucks if they are found to exceed their load carrying limits. These penalties and subsequent time delays causes’ tremendous loss to the exporters. UPEPB will develop a mechanism in synchronization with transport department to get load clearances timely. UPEPB will also approach transport department to revise the load carrying limit for export trucks.
