EXPORT POLICY OF ODISHA - Directorate Of Export Promotion & …depmodisha.nic.in/notice/Draft Export Policy of Odisha... · 2017-04-26 · USD 3.07 bn in 2015 to USD 14.35 bn by 2025

1

1. PREAMBLE

1.1 The State of Odisha is located on the eastern part of our country along the Bay of Bengal. It is bounded by Andhra Pradesh in the South, West Bengal in the North, Jharkhand in the North West and Chhattisgarh on the West. Spread over 1.5 lakh sq.km and is home to 36 million people, the state is divided into 30 districts for administrative purpose. Odisha is the local language with a number of dialects of the same. Odisha is home to some of the primitive tribal communities of our country and about one third of the area is under forests. 1.2 Primarily an agrarian economy where 60% of the population still depend on agriculture and allied activities for livelihoods. There has been a gradual shift seen in the composition of state economy and currently, services sector contribute the maximum to the state GDP, which stands at Rs 1.42 lakh crores at constant prices. Odisha is endowed with rich natural resources. About 32% of iron ore reserves, 25% of coal reserves, 55% of bauxite reserves, 95% of chromite reserves and 92% of nickel reserves of the country are found here. In the last decade and half, Odisha economy has grown rapidly. In the 10th and 11th Plan period, the economic growth registered by the state is 9.51% and 8.53% respectively and it is estimated that the state economy will stabilize at 9.14% growth rate in the 12th Plan period 1.3 Bhubaneswar, the state capital has been consistently ranked by World Bank as one of the 3 best places to do business, which was also echoed by McKinsey. Odisha enjoys very high quality connectivity to all the key locations of our country through rail, road and air. NH5 and NH6 connecting Kolkata-Chennai and Kolkata-Mumbai pass through the state. Odisha has remained at the top of the states receiving the highest amounts of investments. Cumulatively, Odisha has received approximately USD 9 billions of investment from all sources. It is going to be the leading producer of primary steel, aluminum, ferro-alloys of our country in the near future as well as emerge as the power hub. 1.4 Odisha in the past had established trade relationship with several countries like Java, Sumatra, Bali, Bournio etc. There is a tremendous potentiality for export in the sector like Handicrafts, Handlooms, Computer Software etc. not to forget the human skill and talents which needs to be explored. 1.5 Eco Tourism potential of the State is enormous. The natural endowments of pristine beaches, the Chilika lake, deep forests with its unique flora and fauna, the nesting grounds of Olive Ridley Turtles to name a few are Odisha’s collective patrimony. A sum of Rs.10 crore has been provided in the Odisha’s budget 2016-17 for development of Eco-Tourism in the State. 1.6 Odisha is the only destination in the Eastern India where all four IT majors such as Infosys, TCS, Wipro and

Mahindra Satyam have set up their Development Centres. Software export, estimated at Rs1742.54 crore in 2014-

15, is expected to touch Rs 1916.79 crore in 2015-16 and Rs 3735.23 crore in 2022-23. The encouraging figure in

software export is courtesy growth of information and technology (IT) in the state. The upcoming Info Valley-II

project hopes to attract global investment in IT. It will be ready by 2018.

1.7 Odisha registered an export of USD 3.07 bn in 2015. Analyzing the exports trend for the time period 2011-2015, it has been observed that the exports from Odisha and India have witnessed a negative CAGR of 3.88% and 3.23 % respectively. 1.8 In spite of the potential of the State to export various products, the export basket of the State is limited. With a view to expand export products, markets and position in India’s overall exports, there is a need for a new export policy in the State which can identify the focus potential export items and also the gaps in terms of conducive trade policy and infrastructural needs. 1.9 The State notified the export policy in 2014, elaborating various kinds of measures for the promotion of exports from the State. Upon reviewing the progress, it was observed that the implementation of the measures covered therein have been slow. Thus, there arises a need of a policy which is focused, specific and measurable.

2

2. EXPORT PROFILE OF THE STATE

Odisha stood as the 13th

largest exporting State in the country in 2016. From 2012 to 2014, exports from Odisha have increased by a compounded annual growth rate of 11.6%.

In USD Bn

State Jan -Dec 2012 Jan -Dec 2013 Jan -Dec 2014

Jan -Dec 2015 Jan-Dec'16 2016

Maharashtra 64.88 70.41 74.57 68.07 66.74

Gujarat 57.81 75.26 66.18 51.09 50.10

Tamil Nadu 27.52 26.32 53.63 25.82 26.19

Karnataka 17.06 16.68 24.30 19.77 18.55

Uttar Pradesh 10.77 12.62 26.80 12.48 12.50

Andhra Pradesh 14.29 15.57 16.31 13.09 10.56

Haryana 9.67 10.40 11.46 10.53 10.38

Delhi 8.36 9.24 9.95 9.46 10.04

West Bengal 9.19 10.58 17.47 7.78 7.59

Rajasthan 7.28 6.43 11.53 5.35 5.45

Kerala 9.41 5.80 4.14 3.94 5.26

Punjab 6.31 7.04 6.96 5.93 5.17

Odisha 2.89 3.96 3.60 3.13 4.50

Madhya Pradesh 3.70 4.57 4.24 4.07 4.17

Goa 2.77 1.52 1.62 1.38 2.20

Dadra & Nagar Haveli

1.40 1.61 1.85 1.59 1.48

Himachal Pradesh 0.77 0.84 0.86 0.89 1.01

Uttaranchal 1.01 1.16 2.63 1.40 0.85

Daman & Diu 0.48 0.63 0.64 0.74 0.71

Source: DGCIS

3

The State has been dealing in exports in diverse range of products pertaining to minerals, metallurgy, marine, textiles, chemicals or allied sector, etc. Base Metal & Articles of Base Metal with USD 2069.67 million exports in 2015 stood as the top export sector. The Major Sectoral export composition of the State is depicted in graph below:

3. VISION

To make Odisha a prominent player in India’s exports

4. MISSION

To facilitate the rapid and sustained growth of exports from Odisha and to increase its share in all India exports from the present level of 1.16% to 2.5% in 2025. In terms of value to take Odisha’s exports from USD 3.07 bn in 2015 to USD 14.35 bn by 2025 with an estimate that India’s export growth of 9% CAGR.

To provide an effective and supportive institutional mechanism; building export infrastructure and adopting export promotion Sectoral strategies.

5. OBJECTIVES The export policy is aimed to achieve the following objectives:

a) To focus on existing exporting industries and to provide them with necessary support to give further boost to exports from these industries.

b) To encourage Industries / traders in Odisha with products having good export potential to enter the export field by conducting various export related workshops and seminars in order to help budding exporters.

c) To encourage value addition and export diversification d) To enhance exports of emerging sectors of the State e) To provide an enabling environment conducive for export growth from State f) To consistently promote capacity building skill in export sectors to adapt best practices in exports. g) To promote entrepreneurship in the field of exports h) To encourage on quality and standards in export products. i) To establish a institutional mechanism for regular dialogue with export sector.

4

6. POTENTIAL EXPORT ITEMS AND EXPORT DESTINATIONS Based on the data provided by DGCIS, it was analyzed that State has export presence in 61 ITC HS chapters, out of 99. Out of them, some products occupy a larger share of State’s exports which need due attention and are categorized as “Focus Sectors”. All such products under focus sectors constitute 95% share in Odisha’s exports in 2015 with an export value of 2.93 bn. Focus Sectors

a) Marine b) Mineral & Metals c) Chemicals d) Textiles

However, there are certain product groups present in the State which hold immense export potential in spite of the fact that exports recorded in such categories is very low. Such items may help the State in diversifying its export basket and also help in boosting overall exports from the State. These items are identified through surveys and field visits and are categorized as “Potential Sectors”, which include:-

Potential Sectors a) Tie and Dye Handloom b) Handicrafts c) Silver Filigree d) Rubber e) Coconut, Vegetables, Cereals, and f) Spices like Ginger, turmeric and Pepper g) Fertilisers

Besides, the current export potential for Natural Rubber (NR) from the state of Odisha would be relatively insignificant. However, Rubber cultivation in Odisha is currently in nascent stage with total area under cultivation of 3,408 ha. Major share of the plantations, ie approx. 2400 ha is newly planted and will be ready for harvest by 2020. Among the services exports of Odisha, Software exports is one of the area that carries huge potential. In order to draw suitable strategies for enhancing exports, it is important that broad sectors are further elaborated in terms of specific export items, i.e. 8 digit HS level and equally important is to understand the global trends of such items. Hence, the detailed product analysis is also done covering the following:-

- Global export trends - Export trends of Odisha & it’s share in India and World exports - Revealed Competitive Advantage of Odisha wrt India & World - Top World importers - Top Export destinations of India - Competitor analysis - Potential export destinations - Advantage for India under Trade Agreements

It is observed that the identified focus sectors of the State have a strong presence in some of the conventional markets like USA, UK, UAE and China. However, it is important to pursue market diversification strategies to expand in other markets where the import trend has been encouraging like Germany, Italy, Spain, Canada and Russian Federation. A Detailed Product Analysis covering specific export items and focus markets are placed at Annexure 1

5

PRODUCT- MARKET MATRIX

PRODUCT GROUP

ITC HS CH

DESCRIPTION At 6 digit HS code

Product descripton at 6 digit Potential Markets

MARINE 3 Fish and crustaceans, molluscs and other aquatic invertebrate

030617 OTHER SHRIMPS AND PRAWNS : FROZEN

Spain, Italy, South Korea

16 Preparations of meat of fish or of crustaceans, molluses of

160529 SHRIMPS AND PRAWNSNOT IN AIRTIGHT CONTAINER

Denmark, United Kingdom, Germany, Sweden, Australia, Switzerland

MINERAL & METAL

26 Ores, slag and ash 260112 IRON ORE AND CONCENTRATES AGGLOMERATED

Japan, Germany, Saudi Arabia, Canada, Qatar, Turkey, United States of America, South Korea

72 Iron & steel 720241 FERRO-CHROMIUM CARBON

CONTNG>4% BY WT

Germany, Spain, France

76 Aluminium and articles thereof

760110 ALUMINIUM-NOT ALLOYED Germany, Turkey, Italy, Netherlands, Belgium

69 Ceramic Products 690320 GOODS CONTNG BY WT>50% OF ALUMINA (ALUMINIUM OXIDE)/

United States of America, Russian Federation, Canada, Italy, France, China; Taipei, Chinese

CHEMICALS 28 Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes

281820 ALUMINIUM OXIDE OTHER THAN ARTIFICIAL CORUNDUM

Russian Federation, Canada, Norway, Iceland, Bahrain, Qatar

TEXTILE 52 Cotton 520100 COTTON, NOT CARDED OR COMBED South Korea, Mexico

6

7. ENHANCING PRESENCE OF TRADE RELATED ORGANISATIONS

Trade organizations play a pivotal role in boosting exports from a particular state. They not only effectively liason with industry and trade in order to identify the problems in export activities but also provide assistance in export promotional activities such as external publicity, participation in fairs and exhibitions, promotion of exclusive exhibitions and trade exhibitions and trade fairs of specific products. Besides the existing organizations present in State (Annexure 2 ), other related Organisations may also be set up like, Cashew EPC, Gems & Jewellery EPC, full- fledged office of APEDA, Spices Board, CHEMEXIL etc. The State Government would aim to have all trade related agencies relating to exports at a single complex preferably at Raptani Bhawan at BDA Indhradhanu Market Complex, Bhubaneswar.

8. ENHANCING EXPORT RELATED INFRASTRUCTURE

Key infrastructure and support trade services play a crucial role in international trade and can enhance the export competitiveness. There are the sectors involved in physical infrastructure that are crucial for smooth movement of export goods. Making infrastructural services more efficient involve government policy measures and possibly regulatory reforms. These are complementary to trade policies because gains from trade often depend on the quality of infrastructure and related services. Improvements in infrastructure reduce cost and time of doing business and improve trade flows which in turn boost economy and provide employment to large number of people

Export sector require quality infrastructure not in terms of facilities at Port, Airport/ICD but need support infrastructure since the time of sourcing at raw material stage itself. Certain sectors have their own specific needs of maintaining cold chain in the supply system.

- Setting up of nodal point for examining all such infrastructure needs that industry may be able to flag for examination.

- State Govt shall engage with various Stakeholders inviting their suggestions on infrastructure and shall formulate an action for supporting projects under newly launched TIES (Trade Infrastructure for Export Scheme) of the GoI under which grant-in-aid, normally not more than the equity being put in by the implementing agency or 50% of the total equity in the project. The grant in aid shall, normally, be subject to a ceiling of Rs 20 Cr for each infrastructure project. The Central and State Agencies, including Export Promotion Councils, Commodities Boards, SEZ Authorities and Apex Trade Bodies recognised under the EXIM policy of Government of India; are eligible for financial support under this scheme.

Mapping of existing export related infrastructure has been done and can be referred at Annexure 3.

9. FACILITATING EXPORTS FROM HINTERLAND

INLAND CONTAINER DEPOT The State has two functional ICDS one at Balasore managed by CONCOR catering to the industrial area of Bhadrak, Balasore, Dhamara, Kalinganagar, Cuttack, Bhubaneswar. Presently export from this ICD is nil. The other facility of CONCOR is at Rourkela which is for domestic cargo. The other ICD is at Kalinganagar of Apeejay Infralogistics which is situated in the Steel Hub of Kalinganagar Industrial Cluster in Jajpur District of Odisha; about 120 kms from Paradeep Port, 350 kms from Haldia & Kolkata Port and 510 kms from Vishakapatnam Port. Recently, CBEC has also notified ICD at Jharsuguda in November 2016 which will provide dedicated service to the industry along with customs clearance and cargo consolidation facilities. This ICD is a part of Multi-Modal logistic park made by CONCOR. Jharsuguda is also home to India’s largest cement manufacturing unit of Ultratech Cement, of the Aditya Birla group, steel units like Bhushan Power & Steel Limited, Action Ispat Ltd, Eastern Steel & Power Ltd, Concast Steel & Power Ltd to name a few. There is also proposal for the setting up of large-scale aluminium smelter plant by Vedanta.

7

Some areas for attention of State are: Balasore terminal was initially started as an ICD but was discontinued due to low volume of traffic.

With increased marine exports, the ICD operations at Balasore could be revived and availability of containers ensured.

There is a requirement of developing a centralised ICD within Cuttack, Bhubaneswar, Puri and Khurda, having rail connectivity to all the existing 3 ports.

Inland waterways No. 5 needs to be completed at earliest connecting Kalinga Nagar, Industrial hub through Brahmini River Basin to Paradip. Other two River basins like Mahanadi, Subarnarekha needs to be integrated for linkage.

It is important to link export hubs of Odisha with Eastern Dedicated freight corridor.

On the railway route, Jharsuguda is an important railway junction on the Tatanagar-Bilaspur section of the Howrah-Nagpur-Mumbai line and the Jharsuguda-Vizianagaram line. The proposed 206 km long fourth railway link between Jharsuguda and Bilaspur (expected to be completed in 5 years) will link Jharsuguda with Raigarh-Janjgir-Naila and Bilaspur districts of Chhattisgarh. This line is a vital link in the transportation of freight and passenger traffic from the Eastern and Southern sections of India to its Northern and Western parts and needs timely completion.

10. ADEQUATE PORT FACILITIES

Port facilities are important for the EXIM community. Indian ports handle over 95 per cent of the country’s total international trade volume which further elaborates the importance of Ports. The State has one major Port in Odisha which is managed by the Central Government and mostly exports ferro chrome. In efforts to have adequate port facilities for big as well as SMEs, DPEM will pursue with concerned agencies to address such issues on a regular basis so that the State has Port facilities at par with other States. Some of the areas are

Containerization: Due to absence of containerized cargo handling facility in any port present in the State, most of the exporters are dispatching their goods/commodities through the ports in Vishakhapatman, Kolkata and Haldia. As a result, exporters of Odisha are unable to compete in the international market as far as the price of the products are concerned due to increase in the inland transportation cost and transit period required for exporting. With Containerization, the requirement of reefer cargo facility for marine products, cold storage facility for agri products & LCL facility for organic spices would be fulfilled.

A multipurpose cargo berth at Paradip Port has been planned on a build operate and transfer basis and that construction for the same has commenced. The berth is likely to be operationalised within 24 months. It is expected that 40,000 containers would be handled at the facility. Timely completion of the work is crucial for the exports from Odisha.

Minimum facility such as plug points for generators had been created, but shipping lines are not willing to operate from Paradip, due to absence of import cargo. The shipping lines do not find it viable to operate from Paradip. Only 1-2 vessels are coming to Paradip port in a month. Therefore this traffic is getting diverted to Kolkata & Vizag. Shall be taken up with Port Authorities to draw suitable measures in involving stake holders to facilitate exim trade.

11. FACILITATING EXPORTS BY AIR Adequate airport infrastructure and connectivity is required particularly in sectors like gems, jewellery, costly minerals, fruits, vegetables, marine products, appliqué works, stone artifacts, handicrafts, manufacturing and food processing etc.

Recently, International air cargo facility has been made available from Biju Patnaik International Airport in Bhubaneswar. Besides proposed connectivity with Malaysia, there is a need for direct linkage particularly in S. E Asia, Middle East, Far East, European Countries, and USA.

The State government may set up chilled fish storage facility at the international airport in Bhubaneswar to facilitate the export of fresh live and chilled fishery items to international markets.

Provision for display of other potential products like coir, silver filigree etc at the airport along with present display by Utkalika.

EDI facility needs to be facilitated at Bhubaneswar airport as Mumbai is being used presently.

8

12. EMPHASIS ON QUALITY

International standards and quality have played an important role in both protection of health and safety of consumers and facilitation of international trade. The various non tariff agreements under WTO have rapidly changed the scenario. The aspects relating to standardisation and certification of quality are addressed WTO’s Agreement on Technical Barrier to Trade (TBT Agreement), Sanitary and Phytosanitary Measures (SPS Agreements) and Pre-shipment Inspection (PSI Agreement).

A nodal officer shall be appointed to keep track of the changing standards for the focus product group of State and accordingly organize workshops in association with concerned Export Promotion Councils & enabling access to suitable infrastructure to create awareness among exporters. This should be single contact point for State exporters to enquire about Standards. While creating awareness on the role of Standards, the nodal officer shall focus on the following:

Ginger, Turmeric and Pepper are important spices grown in Odisha. For increasing the export potential, various indigenous varieties of these spices have to be tested and documented to know the intrinsic qualities viz. curcumin content in turmeric, fibre content in ginger, piperine content in pepper. Testing need to be encouraged by farmer groups. Presently, Spices Board has a testing lab at Guntur and another lab is proposed at Kolkata. Tying up with Spices Board for making a co-ordinated action plan is the need of an hour. Moreover, the board could also give technical support for a lab in Odisha itself.

Need for steam sterilization unit for organic spices shall be examined for meeting the standards of EU, Japan and USA. It is currently done from Gujarat.

There is a requirement for NABL accredited food testing laboratory in Odisha which shall be pursued.

Organic products help in better realization due to its quality. Need for quality laboratory for international certification of organic products in Odisha would be addressed. Currently testing for organic spices is done from Kolkata.

To ensure that exports meet international norms, robust practices of bio-security shrimp farm be considered for adoption. Hence, fishing harbors also require maintaining hygiene standards as specified by European Union as EU member-countries are major buyers’ sea fish. Sensitization program shall be worked out in consultation with stake holders.

Strict regulation and penal action needs to be in place to discourage the use of restricted antibiotics in marine products. Widespread awareness campaign shall be initiated to educate farmers to not use the restricted materials in the fish and prawn farms. Action plan for reduction time taken in registration of pond with Coastal Aquaculture Authority (CAA) from the present level of nine months to one year to maximum two months. An online application process for the same shall be made available along with a tracking facility to understand the status of any particular application for registration could be ascertained on real time basis. This will help to address the bottle neck in any application and the time taken to issue registration certificate can be substantially reduced.

The testing lab for seafood a venture by MPEDA is non functional even after an initial investment of 5 crores. EIC procured land from state government to put up a testing lab but has made no headway. The mandatory samples are being sent to other cities for testing like Cochin and Visakhapatnam. To facilitate trade and reduce cost, a working plan shall be made in consultation with MPEDA as the prices of private testing operators in Bhubaneswar are very high.

Awareness programme to be organized to make exporters made aware about the presence of fumigation office is Bhubaneswar.

Requirement of setting up a plant quarantine office at Bhubaneswar shall be taken up with GoI. Currently Phytosanitary certification is getting done from Kolkata. It may be set up Bhubaneswar airport itself like in Hyderabad airport.

For post harvest in the Spices sectors, support shall be examined for Integrated Project Proposal of Spices Board for the development of Spices having export potential under MIDH/RKVYMARK

9

13. COMMON PROCESSING/ FACILITY REQUIREMENTS Few sectors particularly which are in clusters have common requirements in terms of the infrastructure, raw material etc in Bhubaneswar. While Different Departments aims to build such common facilities, the following would be focus from export perspective which DEPM shall focus on for necessary follow ups with various other Departments/Stake holders and aim to address the issues of the various sectors highlighted below:

AGRI & ALLIED

For promoting Agri & Allied Sector from the State, Pre & Post processing facility for grading, sorting, waxing and packing needs (Pack house) to be developed. It can be set up in Kandhamal districts and other districts which are producing vegetables (Jajpur district). Pack house can also be set up near the airport.

Lack of cold chain facility at airport is one of the major hindrances for export of fresh horticultural products and flowers from the State.

Since commodities are perishable in nature, there is an immediate requirement of refrigerated vans/reefer trucks so that logistics could not limit the export potential of agri commodities.

MARINE

The Common Processing Centre for Marine Sector, a joint venture between MPEDA and Seafood Exporters Association at Balramgad is languishing after midway stage due to various reasons which needs to be examined and addressed to start this facility.

For seafood export, pre-processing is an important process and shall be examined with priority. All landing centres should have one pre processing centre each and it is proposed to develop aqua culture clusters and the seafood park at Deras, Bhubaneswar.

GEMS & JEWELLERY

Silver filigree is a unique craft of Odisha and is famous for its intricate design and superior craftsmanship. Cuttack, an oldest city of Odisha has a long tradition of silver filigree craft, locally known as Tarakashi. More than 500 artisans are understood to have been practicing this craft. They are engaged in manufacture of jewellery, Souvenir items and other utility products sold primarily in India but have export prospects, particularly to the visiting foreign tourists, for Odisha’s historical significance. In order to establish International Standard Filigree Centre, following proposals of GJEPC shall be examined in consultation with Stake holders to draw action plan:-

- A single point hub to showcase Odisha’s Rich Silver Filigree Craft and Facilitation Centre to encourage buyer-seller interaction, Symposia, Workshop.

- CFC for filigree artisans, manufacturers with modern machine tools. Machinery is required for Silver Anti Tarnishing.

- Testing facility for quality of Silver which is currently done from Kolkata for obtaining ISI Mark for export.

- Demonstration of craft to kindle buyers’ interest. - A focal point for domestic and international tourist with recreational facilities such as Cafeteria,

food joints and B-D shows etc. - Sales outlet for Silver Filigree. - Administrative set up to receive and execute bulk orders. - Open Air Theatre for Cultural Programs

HANDICRAFT

For Applique, there is missing basic infrastructure for collective production. Formation of Common Facility Centers (CFCs) will be examined with basic infrastructures of threads, needles, sewing machines, etc. and required facilities like Generators, etc.) for artisans to come and work on their craft on a daily basis is vital.

Similarly, Common facilities like grinding and polishing machine can be in community for Metal craft.

10

HANDLOOM

Design Centre required keeping international requirements in vision. Although, there are Tie & Dye centres in Odisha that mainly lie in Bargarh, Barpali, Sonepur producing the

vibrant multihued Bandh fabrics. Some also have their own individual dying units. But still proper dying facilities are required as presently exporters are sending their products to Bihar (Bhagalpur) for dying, thereby increasing transaction cost.

Garment stitching unit for product diversification. Odisha Tie & Dye handlooms has huge export potential with wide range of products, mix of colours & rich design, but its market still remains unexplored. Product diversification is the best way to explore and popularize these products in international avenues. These colourful traditional fabrics can be made into various garments such as Tops, Dress, Overcoats etc. and fashion accessories like Stoles, Bags, Dupatta, Shoes, etc. Also, Home Textile Products such as Bed linen, Pillows, Cushions, Table Mats, etc. can be made from this rich multi coloured fabrics.

There is a requirement of setting up of testing facility for fabrics as currently it is being done from Mumbai.

14. CREATING MEGA INFRASTRUCTURE

MEGA FOOD PARKS: NABARD provide affordable credit to food processing units in designated Food Parks to promote modernization of existing processing units in the designated food parks resulting in technology upgradation, automation, increase in efficiency, improvement in product quality, reduction in cost etc. GoI has notified 37 Mega Food Parks out of which two have been notified in Odisha; one at Khurda by

IDCO and another MITS Mega Food Park Ltd., Rayagada. The Khurda MFP was finally approved by MoFPI in November 2015 with assistance of Rs 50 crore. However, the implementing agency i.e. IDCO has yet to meet the conditions for release of the first installment which shall be pursued by the DEPM.

The Seafood Park at Deras Bhubaneswar under Mega Food Park scheme sanctioned by Ministry of Food Processing is yet to be taken up and the state nodal agencies yet to finalize the land rate and allot the land to stake holders. A reasonable land rate would enable young entrepreneurs to enter the sunrise industry. Efforts shall be made to identity bankers who should be willing for cluster financing of the proposed sea food park at Deras, Bhubaneswar with a well negotiated interest rate which will create a win - win situation for both the stake holders (Bankers and Exporters).

15. ENSURING RAW MATERIAL AVAILABILITY

Although numerous appliqué clusters are connected to Bhubaneswar. There lacks of co-ordination among clusters for same craft to have cost-effective supply chain for both raw materials and finished products. Hence, there is a need for opening depots in the areas of craft worker where stones can be made available at lower prices. A branch Utkalika is however situated in Pipli, which also provides the raw material, but still artisans face problem in procuring raw material at lower prices from it. It is proposed to increase different varieties of raw material including lace, colour threads, velvet for easing artisans & exporters. Currently, exporters depend on Kolkata, Mumbai & Surat for procuring these raw materials. Making Odisha State Cooperative Handicrafts Corporation (Utkalika) as Nodal Agency would be examined for sourcing and supplying of raw material as required by the EXIM community pertaining to “Handicraft” sectors. Utkalika branches may be developed in various clusters of Handicrafts for procuring different varieties of raw materials at considerable rates.

Textile sector requires raw material banks so that good quality raw materials are available at cheaper rates & exporters are not fleeced by monopoly-exercising raw materials shops.

Reviving of closed textile mills would be examined for providing yarn to the handloom sector. National Handloom Development Corporation also provides raw material but with a limit of 5 Kg, given on the terms of meeting the concerned weaver. Enhancing the limit would be pursued.

The State government may examine appointing OSIC for providing raw material like silver. Currently the exporters are sourcing silver from MMTC (Bhubaneswar). 50 kgs have to be procured which has to be consumed in 30 days. MMTC pricing is always 20-30% higher. Hedging is not available.

11

16. CREATING TOWN OF EXPORT EXCELLENCE The Foreign Trade Policy of the Govt 2015-20 notifies selected towns producing goods of Rs. 750 Crore or more as Town of Export Excellence (TEE) based on potential for growth in exports. However for TEE in Handloom, Handicraft, Agriculture and Fisheries sector, threshold limit would be Rs.150 Crore. Presently, only Bhubhaneswar has been notified at TEE for marine products. The DEPM shall co-ordinate with various other State Departments in identifying other towns who could be notified as TEE and pursue with DGFT for notification of such Towns. DEPM shall invite proposals of recognized Associations in Recognized associations of units regarding export promotion projects for marketing, capacity building and technological services and shall facilitate for financial assistance under the Market Access Initiative Scheme (MAI) of the Government of India.

17. ENHANCING VALUE ADDITION & PRODUCT DIVERISIFCATION

GEMS & JEWELLERY

Odisha being home to some semi precious rough stones deposits like garnet, agate, moonstones, tourmaline etc, therefore activities like cutting and polishing of such stones at Bhubaneswar leading to exports may be undertaken. These activities are currently done from Jaipur.

For further product diversification, Artisans of Cuttack can be provided with gold as Gold Jewellery with filigree work is in demand and currently exported to Middle East regions from Kolkata.

MARINE

For promotion of Organic aquaculture, MPEDA launched the initiative under India Organic Aquaculture Project" (IOAP) in association with SIPPO during 2007, M/s. WAB Trading International (Asia) Ltd during 2011 and M/s. Jass Ventures Pvt. Ltd during 2013 and have implemented this project in States like Andhra Pradesh and Kerala. The IOAP project helps in developing certified stake holders for organic aquaculture, such as organic shrimp/scampi hatchery; organic feed mill; organic shrimp/scampi farms and organic seafood processors. The organic certification for these stake holders would be obtained as per European Union ((EC) No 834/2007) as well as Naturland (a German organization that promotes organic agriculture worldwide) guidelines. Countries like Vietnam have already such initiatives by converting shrimp farms into organic production centers.

Coordinate with MPEDA for implementation of India Organic Aquaculture Project" (IOAP) in Odisha which will provide assistance in Technical Support to farmers such as conducting training programmes, coordinating Internal Control System and helping in certification process. The approach is being both “Economically and ecologically” sensible as the farmers can sell them at a much higher price than conventionally bred shrimps.

Black tiger Shrimp from Chilika could be branded and exported to various destinations in frozen and chilled forms. Similarly, mangrove crab from Chilika could be branded and exported in live forms.

Promotion campaigns be channelized for high value fishes such as pomfret, mullet, seabass, etc for export in chilled form to different destinations such as Middle east, UK, Singapore, etc. where there a lot of Indian ethnic population

The ornamental fish breeding of fish farming could also be developed for the export market so that live ornamental fishes can be exported from the Bhubaneswar airport to various overseas destinations.

Diversification to other value added fish and aqua delicacies. Promotion to be intensified for dry and chilled fish.

HANDICRAFT

In Applique segment, the craft potential need to explored from international markets perspective. There is a considerable scope for innovation of appliqué products which will be encouraged. It is particularly suitable for banner making, another source of unique product development. A famous example of appliqué is Hastings Embroidery. Modern technology like automated machines would be promoted in the craft, where more than one thread can be utilized for embroidery which will manufacture high quality products. As observed in Pipli cluster (falls under jurisdiction of Puri), artisans are working from their respective houses with no such modern technology.

12

In Stone craft, the packaging is carried out with the help of newspapers; sack bags; corrugated or wooden

boxes There is need to introduce affordable and appropriate packaging, which can protect the product from damage and is maintain its appeal to the buyers. Knowledge of appropriate packaging is also required by coir & handicraft sector. Indian Institute of packaging to be requested to organize various programmes in order to impart training to exporters.

The current product range is limited both in form and in the use of metal. The Dokra craft products today have a purely aesthetic appeal. As a result, the look of the product would matter if it is to gain to traction in the market. A definite and immediate area of research could be to explore variant designs, and more importantly, a combination of alternate/complementary metals that ultimately yield different colors and possibly the newer forms.

18. ENABLING CONDUCIVE POLICY ENVIRONMENT

Although the foreign trade is governed by the Foreign Trade Policy announced by the Government of India, However, State Govt shall align its policies which could favour exporters in terms of reducing their transaction cost & time and enhancing competiveness. Some of the Policy issues of stake holders below would be examined for suitable redressal.

Subsidy for IQF Machine: Many processing factories have installed IQF machine to produce value added products but they are yet to be reimbursed with the subsidy from MPEDA which needs to be addressed soon

Freight Subsidy: Freight subsidy for States without (Containerised) Ports, such as Odisha should be reintroduced by MPEDA for Marine Products

Marketing Cess: Marketing Cess collected on raw material for export of Marine Sector needs to be waived off.

Need of developing criterion of giving “Artisan card” provided by Development Commissioner (Handicrafts) to help artisans in accessing a variety of handloom and handicraft schemes for marketing, access to credit, insurance, etc. In absence of criterion for granting artisan card to the artisans on the basis of quality of work, less skilled artisans are taking huge advantage of it in Odisha. This hinders in the business of talented & skilled artisans of Odisha. This practice is prevalent in almost all handicraft clusters in the State.

Non-antiquity Certificate: Exporter face problem in getting non-antiquity certificate from ASI as Customs insist for such certificate for all the statues being exported by them. Obtaining such certificate is time consuming and delays the exports. All metallic statues / souvenirs require non antiquity certificate that is issued by ASI. The average time taken for certification is approximately 45 days and a certificate is to be obtained for each item in the consignment. This delay leads to loss of business as market interest of small statues / souvenirs is limited to a very short time period.

Efficiency check on already existing infrastructure: State government has purchased a sufficient space in greater Noida export mart but it is observed that it remains unutilized, even the space is rented.

Export Incentive Scrips: The Export Incentive Scrips are being taxed at 5% under the Odisha Vat Act 2004. State Government may consider not taxing the scrips as it reduces the incentive provided to the exporters. Other States like Delhi have given exemption.

Refund of Taxes: There is a delay in the refund of taxes due to tax authorities seeking documentation for proof of exports. The State Govt has signed an MoU in this regard have access to eBRC data, which contains important data relating to proof of foreign exchange realisation. State Government was requested to consider the e-BRC data which is accessible to the State Govt. as proof of exports and ensure timely refunds to exporters

Export Commissioner: Formalise the post of Export Commissioner in Odisha as the matter is in abeyance for long at Centre. For the cause of export promotion from the State a full-fledged administrative office is required under the supervision of an Export Commissioner.

13

State Border Check gate: The State should ensure to adhere to the provisions of 1.23 of the Foreign Trade Policy 2015-20 which says:

“Consignments of items meant for exports shall not be withheld/ delayed for any reason by any agency of Central/ State Government. In case of any doubt, authorities concerned may ask for an undertaking from exporter and release such consignment.

Working of Border check gates to be made more transparent to avoid unnecessary detaintion/check of export. At least 3000 trucks pass through the Girisola interstate check-gate on National Highway-5 in Ganjam district every day, and each truck has to obtain clearances from departments such as commercial tax, motor vehicle, excise, forest and civil supplies before being allowed to cross over.

Power: Subsidy on Electricity for MSMEs is required.

Tax: Ferro alloy industry face delay in getting input tax. Hence, online verification could be made by tax authorities to determine the correctness of exports

Export facilitation Cell: This may be a part of existing facilitation cell of RICs/DICs and shall have a single window operation for export.

Setting up of Fedex office: Setting up of fedex office is required in Bhubhaneswar. It will boost sectors like Gems & Jewellery, Handicrafts & Handloom.

Activating existing handicraft centres: For boosting Handicrafts sector, centres like “Utkalika” and “Boyanika” needs to be active. Ekamra Haat also need to become more active for boosting handicrafts sector

Branding: Odisha Tourism Development Corporation to promote brand handicrafts & handloom sectors. Tourist Centres/ Help desk could be developed at clusters facilitating flow of tourists in the clusters.

19. CLUSTER DEVELOPMENT

Cluster development in any State plays a crucial role for enhancing the productivity and cost competitiveness. Clustering of units also enables the service providers, including banks and credit agencies, to provide their services more economically, thus reducing the cost and improving the availability of services for these enterprises.

Promotion under GoI schemes for existing clusters (Annexure 4) in Odisha identified by UNIDO and GOI for Handloom, Handicraft etc.

Feasibility studies may be initiated for development of new clusters at District of Mayurbhanj bounded by Similipal hill range for rubber cultivation; Kandhamal and Gajapati District for Organic Mango; Chilika for Black tiger Shrimp and mangrove crab and Paradip, Balasore, Dhamra & Golpalpur on sea for dry fish.

Attentions required by State highway authority and concerned agencies for uplifting the basic infrastructure such as public toilets, electricity, street lighting and proper road connectivity in various handicraft clusters in the State

A list of 54 potential clusters identified under Odisha MSME Development Policy-2016 shall be examined and prioritized for the purpose of extending support for export promotion.

A nodal officer from the Directorate of Industries would be appointed for the organizing export awareness camps in the specified clusters opening up the avenues for technology upgradation, exposure in global markets, accessibility to trade related infrastructure, enhancing capacity building of the MSME sector, etc.

Cluster wise Training programs is the need of hour as there is lack of awareness regarding to sourcing buyers and availing beneficial government schemes.

For handicraft, engage with EPCH for Entrepreneurship Development Program by which hands-on training will be provided to clusters/ societies to venture into export market. Once the cluster is ready with exportable products, Council could recommend that cluster for international fair participation.

Branding/promotion of handicrafts clusters (Pipli, Raghurajpur, Chandanpur) in the State with proper signage for the convenience of visitors/tourist to access such clusters.

14

20. SKILL DEVELOPMENT To coordinate with NRRI, Cuttack & APEDA for training farmers on cultivation of better standardized

quality of rice.

Building team of qualified designer with an international for training of craftsmen (It takes around 7 years for the craftsmen to get perfect).

Promote export oriented training in centralized integrated pest management centre Bhubaneswar which imparts knowledge on the use of pesticides to farmers. Officials from Plant quarantine and APEDA can sensitize the programme.

21. MARKETING SUPPORT & MARKET ASSISTANCE

PARTICIPATION IN INTERNATIONAL FAIR To enhance the visibility of Odisha based products in international market, DEPM shall organize Odisha

Pavilion in important international events based on the product/market matrix identified in this Policy. It will also tie up with various Export Promotion Councils/ FIEO which annually organize participation in over hundred international events. DEPM shall invite annual calendar of event from concerned EPCs and formulate its annual calendar and host in its website. A system of online registration shall be put in place along with provision for availing subsidy, if any, in this regard.

AWARENESS PROGRAMMES In order to keep abreast of the exporters of the State about the domestic events/workshops/B2B

meetings being organized with in State/India, all events which are/could be of interest of state exporters shall be hosted on the DEPM website. DEPM shall aim to host events organized in India by all concerned EPCs/FIEO with a view that exporters of State can also be benefited from participation in such events. DEPM shall facilitate participation of State exporters in the form of group participation but without any assistance to individual companies towards boarding/lodging. Such programmes be held at Khurda, Puri, Cuttack, Berhampur, Jharsuguda, Sambalpur, Koraput, Dhenkanal, Balasore, Rambha, Kandhamal, Bubaneshwar. This initiative will help various sectors including handicrafts where currently deemed exports are going on to States like Jaipur.

Tie up with Office of DGFT under the Niryat Bandhu scheme to encourage more entrepreneurs to enter the export arena

Frequent Cultural programmes may be organized similar to those conducted in Jaipur. Currently, Very few cultural programmes are organized at Puri & Konark.

Market information is for export of fresh fruits and vegetables. Buyer-Seller Meets should be frequently organised.

Directorate of Handicraft may coordinate with GJEPC for filigree promotion.

22. PROMOTING MARKET RESEARCH

International trade is dynamic and effected by various parameters. In order to identify suitable market entry strategies, export challenges and opportunities for potential export products, it is important to have a focused research by reputed agencies/consultants/EPCs enabling the State to penetrate various international markets. Such research shall be based on the potential product/market matrix identified in this policy. Sufficient allocation of funds on annual basis shall be allocated for this activity and the results shall be measured in terms of increase in exports of identified products in selected markets. The Directorate of Export Promotion & Marketing shall be the nodal agency for selections of product, market and the agency.

23. FINANCE

To encourage Banks to provide Collateral free funding for start ups which needs financial support To examine the reasons for reduction of Branches of AD Banks (Forex) from 130 to 90. There are no branches of EXIM bank in Odisha. Nearest branch is at Kolkata.

15

24. PROMOTING E-COMMERCE

With advantages of low costs, convenience and no geographical restrictions, e-commerce is emerging as a trend for businesses, especially those of small and medium sizes, to boost exports and introduce their products to potential partners globally. According to the World Trade Organisation, in 2015, e-commerce in goods and services was worth about $22 trillion globally, and has grown the fastest in emerging economies. It is forecast that by 2020 that revenues from Internet will reach total US$4 trillion globally with 4 billion people or 50% of the world’s population using Internet. In order to take advantage of the opportunity, domestic export firms are urged to pay attention to developing e-commerce to boost their operation. Moreover, it is also a medium to encourage employment. As per FIEO Study, there are more than 25,000 Indian exporters, small and medium firms and entrepreneurs present on American e-commerce site e-bay alone. The Policy shall aim to enhance the e-commerce penetration in Odisha particularly for sectors like handloom and handicraft who have limited knowledge about multiple marketing channels and efforts are limited to exhibitions and craft fairs only. Besides merchandise, e-Commerce has ample opportunities to facilitate in promotion of rural tourism in Odisha which shall be explored. But only Tourism Department, Government of Odisha, Hotel Industries and Resorts are focusing on eAccessibility. Whereas a lot many other players involved in this industry may take initiative to position their activities and information for visitors on e-media promotion through open window for easy enrollment and registration due to technical advancement in recent era.

The following links may also be provided in the DEPM website, to facilitate trade online:

Online registration for participation in Trade fairs. Online application as well as processing for subsidies, if any, for participation in Trade fairs. Examining scope for arranging Live Streaming of important trade events, covering all awareness

programs, workshops organized by trade related organizations such as FIEO, FICCI, CII, ASSOCHAM, to name a few and further hosting such videos for the benefit of exporters.

Providing weblink of India’s Trade Statistics from the Ministry of Commerce & Industry Providing weblink of e-IEC Simplifying the registration process in the DEPM website e-FAQ’s would be developed for Start Up’s who wish to enter the export arena.

A web portal namely “MSME e-Bazaar” shall be developed by Directorate of Industries and maintained by Director,

EP&M to provide a platform to entrepreneurs to showcase their products and directly connect to buyers. The portal shall promote product branding “Made in Odisha” for global recognition.

Like other states, online plant quarantine information systems may also be made operational in Bhubaneswar.

25. PROMOTING ECO-TOURISM Tourism not gives employment to large segment but also can be a major contributor for earnig foreign exchange. In 2015, Indian attracted 8.03 million foreign tourists which earned over USD 21 bn foreign exchange for the country. However, Odisha attracted less than 1% of this pie. Odisha has wide range of tourist attractions ranging from wildlife reserves and beaches to temples and monuments and the arts and festivals. The state has rich flora and fauna inhabited the abundant green forest and is home to the Royal Bengal Tiger. Ecotourism is important in Odisha with presence of notable wildlife sanctuaries. Locations which attract tourists because of their natural scenery include Darjeeng, Daringbadi, Barunei, Dhamra, Chandbali, Tensa, Narayani and Saptasajya. Eco-tourism provides a high scope for rural tourism and a degree of alternate employment to the local community and generates environmental awareness, among local residents as well as visitors, about the conservation and sensible use of the lake’s natural resources in Odisha. Odisha is suitable for exploring Rural Tourism because of its strategic location mainly its tribal population which add value and uniqueness and difficult to replicate 26. STATE EXPORTS DATA MECHANISM

The office of the DGCIS is responsible for compiling the State-wise data of exports from the Shipping Bills submitted by the exporter. Hence, DEPM shall periodically interact with the exporters to guide and motivate them

16

to make proper entries in the Shipping Bills so that State of Origin of the exported goods is entered correctly. Moreover exports data from the state be analyzed and made available for the trade for their use and planning. 27. STATE-CENTRE COORDINATION CELL

In order to address the challenges of any Central Govt related Policy environment, a Co-ordination cell may be established to regularly review the progress of developments which are important for the State exports. Such cell shall include members of trade, Bank, Ports or any other as deem fit. The meeting may be held on quarterly basis. Some of the points needing attention and be pursued are:

Centre for perishable cargo (CPC) at Bhubaneswar airport was completed in 2008 with Agricultural Promotion and Investment Corporation of Odisha Ltd (APICOL) as nodal agency and land was provided by Airport Authority of India for 7 years. APICOL has requested for renewal of allotment which is pending. The land allotted is small.

Handloom sector raised the anomaly in the drawback rates which attracts 8% when it is 100% silk but get reduced to 2% if it has a mix of cotton of 25%. This is affecting the pricing of the products

Currently most of the products pertaining to Handloom & Handicraft are described as “Others”. Hence, a proper description shall value add to the exports to international destinations & exporters can also gain in terms of incentives.

Removal of Customs duty on iron ores with FE content upto 62% which is more prevalent in Odisha rather that iron ores with FE content of 58% for which the government has already removed the customs duty.

Interest Subvention Scheme to be extended to Engineering goods falling under Chapter Head 7202 28. REVIEW MECHANISM

An Empowered Committee shall be constituted under the Chairmanship of the Chief Secretary for export related inter-departmental co-ordination and policy formulation, which will act as an advisory body of the State Government for export promotion. The Empowered Committee will sit at least twice in a year to review the progress of different export infrastructural projects, export performance of the State, banking, discussing sectoral issues and other taxation issues faced by exporters of Odisha and statutory difficulties on export business in different Government Departments at the level of State and Centre. Besides, it will also include other members as deem fit. DEPM shall be responsible for formation of this Committee.e

ANNEXURE

17

ANNEXURE 1

ITC HS

CH

Commodity Odisha's

Exports 2015(in USD Mn)

RCA

2015 w.r.t India

RCA

2015 w.r.t

World

%Share in

India's Exports

2015

% Share in

World's Exports 2015

%Growth in Exports

from Odisha (2015 vis-à-vis 2014)

3 Fish and crustaceans, molluscs and other aquatic invertebrates

319.19 6 16.74 6.97% 0.32% -12.19%

16 Preparation of meat, of fish or of crustaceans, molluscs

or other aquatic invertebrates

7.17 3.04 0.86 3.53% 0.02% 1423.34%

26 Ores, slag and ash 60.2 7.7 2.03 8.94% 0.04% -85.68%28 Inorganic chemicals; organic or inorganic compounds of

precious metals, of rare-earth metals, of radioactive elements or of; isotopes

412.43 28.37 19.76 32.94% 0.37% -15.41%

52 Cotton 24.17 0.28 2.29 0.32% 0.04% 154.03%69 Ceramic products 42.36 4.08 3.94 4.73% 0.07% -15.30%

72 Iron and steel 1029.1 14.05 16.7 16.31% 0.32% -17.05%76 Aluminium and articles thereof 1033.23 33.11 33.57 38.45% 0.63% 18.52%

18

TEXTILE SECTOR

A: ITC HS CH 52(Cotton) EXPORT TRENDS GLOBAL EXPORT TRENDS: The global exports of textile sector which include the items falling under ITC HS CH 52 were to the tune of USD 55.79 bn. INDIA’S EXPORT TRENDS: India is the second largest exporter for ITC HS CH 52 with USD 7.47 bn exports in 2015. Exports of items under ITC HS CH 52 occupied a share of 3% in India’s global export in 2015. ODISHA’S EXPORT TRENDS: Odisha stood as the seventeenth largest exporting State in India's global exports of ITC HS CH 52 with USD 0.02 bn exports in 2015. COMPOSITION OF ODISHA EXPORTS FROM ITC HS CH 52

Overall items at 6-digit level in ITC HS CH 52 with exports of over 1 Mn from Odisha were analysed w.r.t their position in India as well as world and are placed below:-

HS Code Commodity Odisha's

Exports 2015

(in USD Mn)

%Share in

India's Exports

2015

%Share in

World Exports

2015

RCA 2015

w.r.t India

RCA 2015

w.r.t World

520100 COTTON, NOT CARDED OR COMBED

24.16 1.30% 0.22% 1.12 11.53

From the above, the only major export item being Cotton, Not Carded or Combed in terms of value is being elaborated further to map the potential markets where we need to focus for enhancing our exports. POTENTIAL MARKET ANALYSIS OF HSC 520100 The top 10 World importers vis-à-vis India’s export destinations are placed below:

World Importers India’s Export Destinations

Countries World Imports

2015

Share in World Imports 2015

Change 2015 (vis-à-vis

2014)

Countries India’s Exports

2015

Share in India's Exports 2015

Change 2015 (vis-à-vis 2014)

In USD Mn In % In USD Mn In %

China 2564.09 22% -49% Bangladesh 677.65 36% -2%

Viet Nam 1607.21 14% 13% Pakistan 506.01 27% 95%

Turkey 1232.45 11% -30% China 292.81 16% -77%

Indonesia 1087.56 9% -22% Viet Nam 181.31 10% -34%

Bangladesh 1009.50 9% -18% Indonesia 59.71 3% -24%

Pakistan 543.75 5% 4% Taipei, Chinese

28.34 2% -8%

Thailand 531.97 5% -21% Turkey 23.16 1% -75%

South Korea 483.42 4% -14% Thailand 22.72 1% -38%

India 386.49 3% -23% Malaysia 13.64 1% 178%

Mexico 337.26 3% -20% Singapore 12.30 1% NA

Sub Total (Top 10)

9783.71 85% -27% Sub Total (Top 10)

1817.65 98% -33%

Total World Imports

11481.88 Total India's Exports

1860.98

19

POTENTIAL EXPORT MARKETS: South Korea, Mexico Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking

Major Competitors (Top 3)

MFN Preferential Tariff

In USD Mn

South Korea 483.42 9 4th USA, Brazil and Australia 0 NIL

Mexico 337.26 0.08 3rd USA and Egypt 0 NIL

20

CHEMICALS SECTOR

A: ITC HS CH 28(Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes) EXPORT TRENDS GLOBAL EXPORT TRENDS: The global exports of chemicals sector which include the items falling under ITC HS CH 28 were to the tune of USD 110.42 bn. INDIA’S EXPORT TRENDS: India is the twenty- first largest exporter for ITC HS CH 28 with USD 1.25 bn exports in 2015. Exports of items under ITC HS CH 28 occupied a share of 0.5% in India’s global export in 2015. ODISHA’S EXPORT TRENDS: Odisha stood as the largest exporting State in India's global exports of ITC HS CH 28 with USD 0.41 bn exports in 2015. COMPOSITION OF ODISHA EXPORTS FROM ITC HS CH 28



Exports 2015

(in USD Mn)

%Share in

India's Exports

2015

%Share in

World Exports

2015

RCA 2015

w.r.t India

RCA 2015

w.r.t World

281820 ALUMINIUM OXIDE OTHER THAN

ARTIFICIAL CORUNDUM

411.79 93.72% 3.28% 80.72 173.37

From the above, the only major export item being Aluminium Oxide Other Than Artificial Corundum in terms of value is being elaborated further to map the potential markets where we need to focus for enhancing our exports. POTENTIAL MARKET ANALYSIS OF HSC 281820 The top 10 World importers vis-à-vis India’s export destinations are placed below:



2015




2015



2014)


China 1632.22 14% -15% China 199.32 45% 9%

Russia 1434.40 12% 1% UAE 154.63 35% -23%

Canada 1230.31 10% 0% Egypt 38.36 9% 33%

Norway 773.58 7% 11% Iran 11.91 3% -79%

UAE 627.34 5% -56% Malaysia 8.55 2% 2365%

USA 615.99 5% -3% Indonesia 8.50 2% 703%

Iceland 518.20 4% 5% USA 3.82 1% -20%

Bahrain 507.81 4% 94% Japan 2.73 1% 106%

Qatar 377.95 3% 14% Saudi Arabia 1.98 0% 126%

India 355.15 3% 2% Thailand 1.54 0% -22%

Sub Total (Top 10)

8072.95 69% -8% Sub Total (Top 10)

431.35 98% -10%

Total World Imports


439.38

21

POTENTIAL EXPORT MARKETS: Russia, Canada, Norway, Iceland, Bahrain, Qatar Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking



In USD Mn

Russia 1434.40 Nil - Ukraine, Australia and Kazakhstan 0 NIL

Canada 1230.31 1.03 10th Brazil, USA and Jamaica 0 NIL

Norway 773.58 Nil - Brazil, USA and Spain NA NA

Iceland 518.20 Nil - Brazil, Jamaica and Ireland NA NA

Bahrain 507.81 0.02 4th Australia, USA and Germany 5 NIL

Qatar 377.95 Nil - Australia, Brazil and USA 5 NIL

22

MINERAL & METALS SECTOR

A: ITC HS CH 26(Ores, slag and ash) EXPORT TRENDS GLOBAL EXPORT TRENDS: The global exports of mineral & metals sector which include the items falling under ITC HS CH 26 were to the tune of USD 156.82 bn. INDIA’S EXPORT TRENDS: India is the twenty-seventh largest exporter for ITC HS CH 26 with USD 0.67 bn exports in 2015. Exports of items under ITC HS CH 26 occupied a share of 0.25% in India’s global export in 2015. ODISHA’S EXPORT TRENDS: Odisha stood as the 3

rd largest exporting State in India's global exports of ITC HS CH 26

with USD 0.06 bn exports in 2015. COMPOSITION OF ODISHA EXPORTS FROM ITC HS CH 26



Exports 2015 (in USD Mn)

%Share in India's Exports

2015

%Share in World Exports

2015

RCA 2015 w.r.t India

RCA 2015 w.r.t World

260112 IRON ORE AND CONCENTRATES

AGGLOMERATED

20.56 21% 0.17% 18.30 9.17

261400 TITANIUM ORES AND

CONCENTRATES

18.71 17% 1.70% 14.69 89.86

261000 CHROMIUM ORES AND

CONCENTRATES

12.27 60% 0.61% 51.55 32.22

260111 IRON ORES AND CONCENTRATS

NON-AGGLOMERATED OTHER

THAN ROAST

5.69 5% 0.01% 4.31 0.54

261510 ZIRCONIUM ORES AND

CONCENTRATES

2.03 36% 0.24% 30.70 12.48

From the above, the major export item in this category being Iron Ore and Concentrates Agglomerated in terms of value, occupying 35% share of ITC HS CH 26 is being elaborated further to map the potential markets where we need to focus for enhancing our exports. However, HSC 261000 (Chromium Ores and Concentrates) also holds importance in view of its large share in India’s exports. POTENTIAL MARKET ANALYSIS OF HSC 260112 The top 10 World importers vis-à-vis India’s export destinations are placed below:



2015




2015




China 2179.14 18% -19% Iran 58.16 60% 2%

Japan 1282.38 11% -36% China 34.42 36% -52%

Germany 1246.32 10% -37% Malaysia 2.61 3%

Saudi Arabia

705.49 6% -40% UAE 1.55 2%

Canada 531.69 4% -48% Netherlands Antilles

0.00 0%

Qatar 499.12 4% 9% Area Nes 0.00 0% -100%

23

Turkey 487.48 4% -30% Bahrain 0.00 0%

UAE 484.41 4% -12% Colombia 0.00 0%

USA 414.81 3% -31% Greece 0.00 0%

South Korea

334.21 3% -37% Guatemala 0.00 0%

Sub Total (Top 10)

8165.05 67% -30% Sub Total (Top 10)

96.74 100% -33%

Total World Imports


96.74

POTENTIAL EXPORT MARKETS: Japan, Germany, Saudi Arabia, Canada, Qatar, Turkey, USA, South Korea Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking



In USD Mn

Japan 1282.38 0.01 6th Brazil, Ukraine and Chile 0 NIL

Germany 1246.32 Nil - Brazil, Canada and Sweden 0 NIL

Saudi Arabia

705.49 Nil - Oman, Sweden and Brazil 5 NIL

Canada 531.69 Nil - USA and Sweden 0 NIL

Qatar 499.12 Nil - Brazil, Sweden and Oman 5 NIL

Turkey 487.48 Nil - Russian, Sweden and Ukraine

0 NIL

USA 414.81 Nil - Canada, Brazil, Venezuela 0 NIL

South Korea

334.21 Nil - Brazil, Chile and Australia 0 NIL

24

B: ITC HS CH 69(Ceramic products) EXPORT TRENDS GLOBAL EXPORT TRENDS: The global exports of mineral & metals sector which include the items falling under ITC HS CH 69 were to the tune of USD 56.86 bn. INDIA’S EXPORT TRENDS: India is the ninth largest exporter for ITC HS CH 69 with USD 0.89 bn exports in 2015. Exports of items under ITC HS CH 69 occupied a share of 0.34% in India’s global export in 2015. ODISHA’S EXPORT TRENDS: Odisha stood as the 2

nd largest exporting State in India's global exports of ITC HS CH 69



HS

Code Commodity Odisha's



2015


2015



690320 GOODS CONTNG BY WT>50% OF

ALUMINA (ALUMINIUM

OXIDE)/

19.80 43% 1.90% 36.73 100.24

690220 REFRCTORY BRCKS BLOCKS ETC

CONTNG BY WT> 50% OF

ALUMINA,SIL

10.94 13% 0.69% 11.18 36.35

690210 GOODS CONTNG BY WT

SINGLY/TOGETHR>50% OF THE

ELMNTS MAGNSM,

7.89 47% 0.53% 40.87 28.00

690390 OTHER REFRACTORY CERAMIC

GOODS

1.79 6% 0.27% 5.04 14.27

690290 OTHR REFRACTROY

BRICKS,BLOCKS,TILES ETC

1.70 11% 0.31% 9.14 16.55

From the above, the major export item in this category being Goods Containing By Wt>50% Of Alumina in terms of value, occupying 47% share of ITC HS CH 69 is being elaborated further to map the potential markets where we need to focus for enhancing our exports. POTENTIAL MARKET ANALYSIS OF HSC 690320 The top 10 World importers vis-à-vis India’s export destinations are placed below:



2015




2015




USA 179.31 17% -15% Poland 7.03 15% -7%

Russia 82.69 8% -11% Iran 3.74 8% -17%

Germany 66.90 6% -27% Romania 3.44 7% -29%

Mexico 59.32 6% -10% Turkey 2.98 6% -3%

Canada 36.54 3% 9% UK 2.05 4% -44%

Italy 35.29 3% -12% Germany 1.99 4% -54%

France 34.15 3% -25% Mexico 1.92 4% 14%

China 34.05 3% 8% South Africa 1.81 4% -15%

25

Turkey 33.86 3% -14% Sweden 1.76 4% -17%

Taipei, Chinese

33.73 3% -12% UAE 1.67 4% 109%

Sub Total (Top 10)

595.84 56% -13% Sub Total (Top 10)

28.38 61% -18%

Total World Imports


46.43

POTENTIAL EXPORT MARKETS: USA, Russia, Canada, Italy, France, China; Taipei, Chinese Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking



In USD Mn

USA 179.31 1.14 12th Mexico, Canada and Germany 0 NIL

Russia 82.69 1.67 11th China, Czech Republic and Poland 13.6 NIL

Canada 36.54 0.31 8th USA, Mexico and China 0 NIL

Italy 35.29 1.67 8th Germany, USA and Czech Republic 5 GSP- 1.5

France 34.15 0.66 13th Spain, Germany and UK 5 GSP- 1.5

China 34.05 0.08 17th Japan, South Korea and Germany 8 NIL

Taipei, Chinese

33.73 0.49 6th China, Japan and Germany NA NA

26

C: ITC HS CH 72(Iron and Steel) EXPORT TRENDS GLOBAL EXPORT TRENDS: The global exports of mineral & metals sector which include the items falling under ITC HS CH 72 were to the tune of USD 326.02 bn. INDIA’S EXPORT TRENDS: India is the ninth largest exporter for ITC HS CH 72 with USD 6.31 bn exports in 2015. Exports of items under ITC HS CH 72 occupied a share of 2.39% in India’s global export in 2015. ODISHA’S EXPORT TRENDS: Odisha stood as the 2

nd largest exporting State in India's global exports of ITC HS CH 72






2015


2015



720241 FERRO-CHROMIUM CARBON CONTNG>4% BY WT

421.14 88% 9% 75.42 479.77

721990 OTHR FLAT-RLLD PRDCTS OF STAINLESS-STEEL OF WDTH >=600 MM

78.88 61% 7% 52.20 348.67

720918 FLT-ROLD PRDCTS,IN COILS NT FRTHR WRKD THNCOLD-ROLD (CLD RDU

75.58 46% 3% 39.74 172.34

720110 NON-ALLOY PIG IRON CONTNG <=0.5% PHOSPHRS

59.74 46% 2% 39.35 93.11

721933 COLD-RLLD PRDCTS OF THCKNS>1 MM BT<3 MM

48.76 81% 1% 69.72 40.73

721913 HT-RLLD PRDCTS IN COILS OFTHCKNS >= 3 MM BT < 4.75 MM

39.38 94% 1% 81.16 51.83

721921 HT-RLLD PRDCTS NT IN COILS OF THCKNS>10MM

35.30 87% 2% 74.95 106.46

721041 CORUGATD PRDCTS,OTHRWS PLTD/COATD WTH ZINC

32.40 14% 5% 11.81 239.44

721914 HT-RLLD PRDCTS IN COILS OF THCKNS<3 MM

30.94 88% 2% 76.06 116.61

721061 FLT-RLD PRDCTS OF IRON/NON ALOY STL PLTD OR COTD WTH ALUMIN

27.15 24% 1% 20.30 64.98

720851 FLT-ROLD PRDCTS, NOT IN COILS OF A THCKNS EXCD 10 MM NT FRTH

22.91 7% 0% 5.60 14.39

721934 COLD-RLLD PRDCTS OF STAINLESS STEEL OF A THICKNESS >= 0.5 M

21.48 36% 0% 30.61 23.21

721049 OTHR PRDCTS OF IRON/NON-ALLOY STEEL OTHERWISE PLTD/COT

17.31 3% 0% 2.39 4.75

721932 COLD-RLLD PRDCTS OF THCKNS>=3 MM BT<4.75MM

16.69 92% 1% 79.55 54.80

720230 FERRO-SILICO-MANGANESE 13.62 2% 1% 1.95 30.99

720839 FLT-ROLD PRDCTS IN COILS OF A THCKNS OF <3MM NT FRTHR WRKD

10.74 8% 0% 7.19 5.36

720837 FLT-ROLD PRDCTS IN COILS OF A THCKNS >= 4.75MM BUT <10MM B

10.10 13% 0% 11.35 17.20

721922 HOT-RLLD,PRDCTS NT IN COILS OF THCKNS>= 4.75 MM BUT <10 MM

10.07 65% 1% 56.21 42.91

720299 OTHER FERRO-ALLOYS 8.96 31% 1% 26.92 61.72

721912 HT-RLLD PRDCTS IN COILS OF THCKNS >=4.75 MM BT<10 MM

6.74 95% 0% 82.03 15.82

720825 FLAT-ROLD PRDCTS IN COILS OF A THCKNS>= 4.75 MM ONLY HOT-R

4.51 19% 1% 16.34 27.82

27

720928 FLT-ROLD PRDCTS,NT IN COILS, NT FRTHR WRKDTHN COLD ROLD (CLD

4.31 79% 6% 68.44 334.58

720719 OTHR PRDCTS CONTNG BY WT<0.25% OF CARBON

3.28 2% 0% 1.82 22.43

720310 FERS PRDCT OBTND BY DRCT RDCTN OF IRON ORE

2.71 7% 0% 6.09 7.73

720810 FLAT-ROLD PRODUCTS, IN COILS NT FURTHER WORKED THN HOT-ROL

2.64 24% 1% 20.79 50.63

720249 OTHER FERRO-CHROMIUM 2.61 14% 0% 11.70 16.11

721923 HT-RLLD PRDCTS NT IN COILS OF THCKNS OF >=3MM BUT <4.75 MM

2.58 50% 1% 43.23 41.20

720917 FLT-ROLD PRDCTS,IN COILS NT FRTHR WRKD THNCOLD-ROLD (COLD RD

2.29 2% 0% 1.85 2.06

720852 FLAT-ROLD PRDCTS,NOT IN COILS OF A THICKNESS>=4.75MM

2.22 9% 0% 8.13 4.71

721931 COLD-RLLD PRDCTS OF THCKNS>=4.75 MM

2.21 95% 0% 81.76 16.85

720840 FLT-ROLD PRDCTS NT IN COILS,NT FRTHR WRKD THN HOT ROLD WTH P

2.13 79% 1% 67.75 41.53

720915 FLT-ROLD PRDCTS,IN COILS NT FRTHR WRKD THNCOLD-ROLD (COLD RD

1.02 24% 0% 20.38 21.45

722540 OTHER, NOT FURTHER WORKED THAN HOT-ROLLED, NOT IN COILS :

1.01 26% 0% 22.68 0.87

From the above, the major export item in this category being Ferro-Chromium Carbon Containing>4% By Wt in terms of value, occupying 41% share of ITC HS CH 72 is being elaborated further to map the potential markets where we need to focus for enhancing our exports. However, the following items also hold importance in view of their large share in India’s exports:

HSC 721912 (HT-RLLD PRDCTS IN COILS OF THCKNS >=4.75 MM BT<10 MM) HSC 721931 (COLD-RLLD PRDCTS OF THCKNS>=4.75 MM) HSC 721913 (HT-RLLD PRDCTS IN COILS OFTHCKNS >= 3 MM BT < 4.75 MM) HSC 721932 (COLD-RLLD PRDCTS OF THCKNS>=3 MM BT<4.75MM) HSC 721914 (HT-RLLD PRDCTS IN COILS OF THCKNS<3 MM) HSC 721921 (HT-RLLD PRDCTS NT IN COILS OF THCKNS>10MM) HSC 721933 (COLD-RLLD PRDCTS OF THCKNS>1 MM BT<3 MM) HSC 720928 (FLT-ROLD PRDCTS,NT IN COILS, NT FRTHR WRKDTHN COLD ROLD (CLD)) HSC 720840 (FLT-ROLD PRDCTS NT IN COILS,NT FRTHR WRKD THN HOT ROLD WTH P) HSC 721922 (HOT-RLLD,PRDCTS NT IN COILS OF THCKNS>= 4.75 MM BUT <10 MM) HSC 721990 (OTHR FLAT-RLLD PRDCTS OF STAINLESS-STEEL OF WDTH >=600 MM) HSC 721923 (HT-RLLD PRDCTS NT IN COILS OF THCKNS OF >=3MM BUT <4.75 MM)

28

POTENTIAL MARKET ANALYSIS OF HSC 720241 The top 10 World importers vis-à-vis India’s export destinations are placed below:



2015




2015




China 2418.22 40% 18% South Korea 165.44 34% -3%

Japan 777.57 13% -19% China 128.22 27% -10%

South Korea 498.65 8% 0% Japan 44.49 9% -26%

USA 452.80 8% -40% Taipei, Chinese

44.40 9% 198%

Italy 303.42 5% -14% Italy 18.99 4% 14%

Belgium 302.81 5% -4% USA 16.40 3% 20%

Taipei, Chinese

236.03 4% -6% Netherlands 11.39 2% -55%

Germany 208.22 3% -26% Belgium 9.39 2% 95%

Spain 165.81 3% -16% Mexico 9.02 2% -43%

France 110.31 2% -16% Chile 4.17 1% 77%

Sub Total (Top 10)

5473.83 91% -6% Sub Total (Top 10)

451.92 94% -3%

Total World Imports


480.96

POTENTIAL EXPORT MARKETS: Germany, Spain, France Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking



In USD Mn

Germany 208.22 9.47 7th Turkey, South Africa and Netherlands

4 NIL

Spain 165.81 2.58 8th South Africa, Sweden and Finland 4 NIL

France 110.31 0.87 11th South Africa, Kazakhstan and Sweden

4 NIL

29

D: ITC HS CH 76(Aluminium and articles thereof) EXPORT TRENDS GLOBAL EXPORT TRENDS: The global exports of mineral & metals sector which include the items falling under ITC HS CH 76 were to the tune of USD 162.81 bn. INDIA’S EXPORT TRENDS: India is the eighteenth largest exporter for ITC HS CH 76 with USD 2.69 bn exports in 2015. Exports of items under ITC HS CH 76 occupied a share of 1.02% in India’s global export in 2015. ODISHA’S EXPORT TRENDS: Odisha stood as the largest exporting State in India's global exports of ITC HS CH 76 with USD 1.03 bn exports in 2015. COMPOSITION OF ODISHA EXPORTS FROM ITC HS CH 76





2015


2015



760110 ALUMINIUM-NOT ALLOYED 842.16 63% 4.02% 54.48 212.80

760120 ALUMINIUM ALLOYS 158.47 83% 0.67% 71.91 35.34

760612 RCTNGLR(INCL SQR)PLTS

ETC.OF ALMNM ALLYS

10.51 10% 0.05% 8.34 2.44

761410 STRANDED WIRE,CBLS ETC

WTH STEEL CORE

8.82 7% 1.13% 6.24 59.81

760511 ALUMINIUM WIRE-NOT

ALLOYED-OF WHICH THE

MAXIMUM CROSS-SCTN

5.49 22% 0.21% 18.55 10.89

760410 BARS-RODS ETC.OF

ALUMINIUM-NOT ALLOYED

2.67 27% 0.11% 22.97 5.75

760611 RECTANGULAR(INCLUDING

SQUARE) PLATES

SHEETS,STRIP OF AL

2.54 8% 0.07% 6.47 3.48

761490 OTHR STRNDED WIRE,CBLS

PLAITD BNDS ETC

2.04 2% 0.27% 1.37 14.13

From the above, the major export item in this category being Aluminium-Not Alloyed in terms of value, occupying 82% share of ITC HS CH 76 is being elaborated further to map the potential markets where we need to focus for enhancing our exports. However, HSC 760120 (Aluminium Alloys) also holds importance in view of its large share in India’s exports.

30

POTENTIAL MARKET ANALYSIS OF HSC 760110 The top 10 World importers vis-à-vis India’s export destinations are placed below:



2015




2015



2014)


Japan 3019.36 13% -17% South Korea 492.66 37% 5%

USA 2863.43 12% -1% Mexico 180.46 14% -44%

South Korea 2062.72 9% -7% Malaysia 141.11 11% 2257%

Germany 1556.13 7% -21% USA 75.98 6% 111638%

Turkey 1410.85 6% -7% Taipei, Chinese

71.37 5% 376%

Italy 1159.11 5% 3% Singapore 57.43 4% 2223%

Malaysia 741.00 3% 56% Indonesia 41.56 3%

Taipei, Chinese

740.96 3% -13% Bulgaria 38.15 3% -58%

Netherlands 713.17 3% -63% Japan 34.71 3% 324%

Belgium 683.10 3% -2% Brazil 34.24 3% 1709%

Sub Total (Top 10)

14949.83 64% -14% Sub Total (Top 10)

1167.68 88% 28%

Total World Imports


1331.39

POTENTIAL EXPORT MARKETS: Germany, Turkey, Italy, Netherlands, Belgium Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking



In USD Mn

Germany 1556.13 Nil - Russia, Netherlands and Iceland 3 NIL

Turkey 1410.85 89.24 5th Russia, Saudi Arabia and Tajikistan 3 NIL

Italy 1159.11 31.89 10th Mozambique, Russia and Saudi Arabia

3 NIL

Netherlands 713.17 0.01 39th Russia, Canada and Ghana 3 NIL

Belgium 683.10 0.40 17th Mozambique, Netherlands and Russia

3 NIL

31

MARINE SECTOR

A: ITC HS CH 3(Fish, Crustaceans, Molluscs, Aquatic Invertebrates Nes) EXPORT TRENDS GLOBAL EXPORT TRENDS: The global exports of marine sector which include the items falling under ITC HS CH 3 were to the tune of USD 100.87 bn. INDIA’S EXPORT TRENDS: India is the fifth largest exporter for ITC HS CH 3 with USD 4.58 bn exports in 2015. Exports of items under ITC HS CH 3 occupied a share of 2% in India’s global export in 2015. ODISHA’S EXPORT TRENDS: Odisha stood as the 7

th largest exporting State in India's global exports of ITC HS CH 3



HS Code

Commodity Odisha's Exports 2015

(in USD Mn)


2015


2015



030617 OTHER SHRIMPS AND PRAWNS : FROZEN

310.88 10.12% 2.24% 8.71 118.40

030389 OTHER FRZN FISH INCL HILSA, DARA, SEER,POMFRET

5.45 1.39% 0.13% 1.20 6.76

030741 CUTLE FISH AND SQUID LIVE FRSH/CHLD

1.76 0.96% 0.46% 0.82 24.23

From the above, the major export item in this category being Other Shrimps & Prawns (Frozen) in terms of value, occupying 98% share of ITC HS CH 3 is being elaborated further to map the potential markets where we need to focus for enhancing our exports. POTENTIAL MARKET ANALYSIS OF HSC 030617 The top 10 World importers vis-à-vis India’s export destinations are placed below:



2015

Share in World

Imports 2015


2014)


2015



2014)


USA 4281.51 30% -21% USA 1171.12 38% -13%

Japan 1466.74 10% -20% Viet Nam 493.98 16% -12%

Viet Nam 1427.68 10% 227% Japan 304.85 10% -12%

Spain 1111.04 8% -8% Belgium 149.72 5% -29%

France 749.96 5% -9% Netherlands 109.48 4% 20%

Italy 443.44 3% -22% UAE 105.21 3% -19%

China 440.61 3% 43% UK 101.05 3% -28%

UK 391.61 3% -21% Canada 91.84 3% -23%

South Korea 343.26 2% -17% France 78.99 3% -24%

Belgium 342.29 2% -28% China 58.82 2% 78%

Sub Total (Top 10)

10998.11 78% -8% Sub Total (Top 10)

2665.07 87% -14%

Total World Imports


3072.99

32

POTENTIAL EXPORT MARKETS: Spain, Italy, South Korea Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking



In USD Mn

Spain 1111.04 34.7 7th Argentina, Ecuador and China

12 GSP – 4.2 (for tariff lines- 0306179100, 0306179220 0306179290, 0306179300, 0306179910, 0306179990) GSP- 8.5 (for tariff line- 0306179400)

Italy 443.44 42.07 4th Ecuador, Argentina and Spain

12 GSP – 4.2 (for tariff lines- 0306179100, 0306179220 0306179290, 0306179300, 0306179910, 0306179990) GSP- 8.5 (for tariff line- 0306179400)

South Korea

343.26 16 6th Viet Nam, Ecuador and China

20 CEPA- 2.5 (for tariff lines- 0306171010, 0306179010)

33

B: ITC HS CH 16(Preparations of Meat, Of Fish or Of Crustaceans, Molluscs or Other Aquatic Invertebrates) EXPORT TRENDS GLOBAL EXPORTS TREND: The global exports of marine sector which include the items falling under ITC HS CH 16 were to the tune of USD 44.29 bn. INDIA’s EXPORTS TREND: India is the thirty-fourth largest exporter for ITC HS CH 16 with USD 0.2 bn exports in 2015. Exports of items under ITC HS CH 16 occupied a share of 0.1% in India’s global export in 2015. ODISHA’s EXPORTS TREND: Odisha stood as the 6

th largest exporting State in India’s global exports of ITC HS CH 16

with USD 0.01 bn exports in 2015. COMPOSITION OF ODISHA EXPORTS FROM ITC HS CH 16 Overall items at 6-digit level in ITC HS CH 16 with exports of over 1 Mn from Odisha were analysed w.r.t their position in India as well as world and are placed below:-


Exports 2015

(in USD Mn)

%Share in

India's Exports

2015

%Share in

World Exports

2015

RCA 2015

w.r.t India

RCA 2015

w.r.t World

160529 OTHER SHRIMPS AND PRAWNS

(NOT IN AIRTIGHT CONTAINER)

7.17 10% 0.4% 8.23 23.26

From the above, the only major export item being Other Shrimps and Prawns (Not in Airtight Container) in terms of value is being elaborated further to map the potential markets where we need to focus for enhancing our exports. POTENTIAL MARKET ANALYSIS FOR HSC 160529 The top 10 World importers vis-à-vis India’s export destinations are placed below:



2015



2014)


2015




Denmark 183.85 17% 5% USA 50.73 68% 4811%

USA 121.37 11% 2% Belgium 9.32 12% 1091%

UK 120.24 11% -22% Canada 3.48 5% NA

Netherlands 118.18 11% -11% France 1.96 3% 252%

Germany 98.13 9% -4% South Africa 1.9 3% NA

Sweden 63.52 6% -3% Italy 1.83 2% NA

France 57.75 5% -14% Japan 1.08 1% NA

Belgium 56.95 5% -12% Greece 0.93 1% NA

Australia 39.5 4% -34% Netherlands 0.73 1% 93%

Switzerland 34 3% -12% Panama 0.52 1% NA

Sub Total (Top 10)

893.49 83% -9% Sub Total (Top 10)

72.47 97% 2533%

Total World Imports


74.97

34

POTENTIAL EXPORT MARKETS: Denmark, UK, Germany, Sweden, Australia, Switzerland Further, with a view to access the extent upto which Odisha can match the imports of potential countries, Trade Complementarity Index is analysed as below which shows that both the partners will tend to gain from increased trade. INDIA’S POSITION IN POTENTIAL MARKETS IN 2015

Potential Market

Imports From World

Imports From India

India’s Ranking



In USD Mn

Denmark 183.85 1.49 7th Greenland, Canada and Norway 20 GSP-7

UK 120.24

6.69 6th Denmark, Canada and Viet Nam 20 GSP-7

Germany 98.13 1.25 12th Netherlands, Thailand and Denmark

20 GSP- 7

Sweden 63.52 Nil - Norway, Denmark and Germany 20 GSP-7

Australia 39.50 0.16 10th Viet Nam, Thailand and China 0 NIL

Switzerland 34 0.15 13th Viet Nam, Germany and Denmark

NA NA

35

ANNEXURE 2

EXISTING TRADE RELATED ORGANIZATIONS

DGFT The Joint Director General of Foreign Trade OSIC Building, 5th Floor, Industrial Estate, Khapuria Industrial Complex, Link Road, Cuttack- 753 010 Tel-Fax: 0671-2343034 E-mail address: [email protected]

ECGC A-77, Saheed Nagar, Bhubaneshwar - 751 007 Tel: (0674) 2521772/2543592 Fax: (0674) 2545837 E-mail: [email protected]

EPC’S/ Commodity Boards/Authority

1. MPEDA MPEDA Sub- Regional Office Bhubaneswar N-6/452, IRC Village, Nayapalli, Near Hotel Crown, Bhubaneswar-751015, Odisha Telfax: +91 674-2550161 E-mail: [email protected] MPEDA Regional Centre (Aquaculture) Bhubaneswar N-6/452, 2nd Floor, IRC Village, Jayadev Vihar, Opp. Crown Hotel Entrance, Nayapalli, Bhubaneswar-751015, Odisha Tel: +91 674 2555360 Fax: +91 674 2550130 E-mail: [email protected]

2. Coir Board Jagamara (Udyogpuri), P.O. Khandagiri, Bhubaneswar 751 030, Odisha Tel/Fax : +91-674-2350078 E-mail:[email protected]

3. APEDA (virtual office) The Agricultural Promotion & Investment Corporation of Odisha Limited 326, Baramunda, Bhubaneshwar – 751 003, Orissa Tel : +91- 0674-2354125 Fax : +91- 0674-2354006 E-mail : [email protected], [email protected]

4. Coconut Development Board (State Centre) Pitapally, Kumarbasta PO, District Khurda - 752 055 Ph: (06755) 211505, 212505 E-mail: [email protected]

FIEO (Odisha Chapter)

Ashoka Market Complex, 2nd Floor, Master Canteen, Station Square, Bhubaneswar-751 009, Odisha Phone: +91-674-2536 674, 9437226712 Fax: +91-674-2536 675 E-Mail: [email protected]

36

ANNEXURE 3

MAPPING OF EXISTING TRADE RELATED INFRASTRUCTURE

Agri Export Zone Ginger and Turmeric (Kandhamal district)

Accredited Certification Agency under NPOP

Odisha State Organic Certification Agency (OSOCA) Plot No.-326, Baramunda, Bhubaneswar, Odisha, 751003 Phone-(0674) 2563639/2561783; 9437211001 Fax.- (0674)2562078 Email : [email protected]; [email protected]

Testing Laboratories of DEPM

There are 6 Testing Laboratories of DEPM situated at Cuttack, Rourkela, Berhampur, Angul, Balasore and Bolangir

Mineral Testing Laboratory

Directorate of Geology (for minerals, gemstone, diamond) Bhu-Bigyan Bhawan Bhubaneswar- 751 001 Phone: +91674 2392374 FAX: +91 674 2391776 Email:[email protected], [email protected]

Functional ICD Container Corporation of India Ltd, Balasore

Apeejay Infralogistics, Kalinganagar

Operational Port Dhamra Port, Bhadrak

Gopalpur Port, Ganjam

Paradip Port, Jagatsinghpur

Operational Airport

Biju Patnaik International Airport, Bhubaneswar

Operational SEZ’s

SEZ TYPE OF SEZ

1 Orissa Industrial Infrastructure Development Corporation (IDCO) Chandaka Industrial Estate, P.S. -Chandrasekharpur, Tehsil -Bhubaneswar, District Khurda, Odisha

IT

2 Orissa Industrial Infrastructure Development Corporation (IDCO) Village Gaudakahipur and Arisal, P.S. - Jatni, Tehsil - Jatni, District Khurda, Odisha

IT (Knowledge Park)

3 Vedanta Aluminium Limited Brundamal and Kurebaga Villages, Tehsil and District - Jharsuguda, Odisha

Manufacture & Export of Aluminium

37

ANNEXURE 4

MAPPING OF EXISTING CLUSTERS

SME Clusters (Engaged in Manufactur-ing activity)

Cluster Export Potential

Balangir Cluster for Rice Mills Medium with an annual turnover of upto 10 crore production

Balasore Cluster for Rice Mills Medium with an annual turnover of upto 10 crore production

Balasore Cluster for Powerloom Medium with an annual turnover of upto 10 crore production

Cuttack Cluster for Rice Mills Medium with an annual turnover in the range of 10 Crore to 100 crore production

Cuttack Cluster for Chemicals & Pharmaceuticals

High with an annual turnover in the range of 10 Crore to 100 crore production

Cuttack Cluster for Engineering & Fabrication

Medium with an annual turnover in the range of 100 crore to 1000 crore production

Cuttack Cluster for Spices High with an annual turnover in the range of 10 crore to 100 crore production

Dhenkanal Cluster for Powerloom Medium with an annual turnover of upto 10 crore production

Ganjam Cluster for Powerloom Medium with an annual turnover in the range of 10 Crore to 100 crore production

Ganjam Cluster for Rice Mills Medium with an annual turnover of upto 10 crore production

Koraput Cluster for Rice Mills Medium with an annual turnover of upto 10 crore production

Puri Cluster for Rice Mills Medium with an annual turnover in the range of 10 Crore to 100 crore production

Sambhalpur Cluster for Rice Mills Medium with an annual turnover in the range of 10 Crore to 100 crore production

Functional Handloom Clusters

Cluster Products

Sonepur Cluster in Subarnapur district Bomkai Design Tie & dye sarees, cotton sarees, dress material, shirting running material

Bargah Cluster in Bargah district Cotton Tie & dye saree, dress material lungi

Laxmiprasad Cluster in Boudh district sarees, dress materials

Patangarh Cluster in Bolangir district Mercerized cotton sarees with tie & dye border, anchal and buti

Jagatsinghpur Cluster in Keonjhar district

Lungies, furnishing and silk, tasar saree

Dunguripali Cluster in Sonepur district Dress material, Scarves

Product specific Craft Clusters

Cluster Type of Craft

Bhainchua Cluster in Khordha district Reamal Cluster in Dhenkanal district Sadeibereni Cluster in Bhubaneswar district Kunta Cluster in Bhubaneswar district Rangali Cluster in Sambalpur district

Metal

Puri Cluster in Puri District Baulagadia Cluster in Bhubaneswar

Stone Carving Craft

38

district

Khairpadar Cluster in Kalahandi district Kebdi Cluster in Kalahandi district

Wood

Nuapatna Cluster in Cuttack district Mundahana Cluster in Khordha district Mareigaon Cluster falls in Keonjhar district

Hand Printed

Balikuda Cluster in Bhubaneswar district Garhmadhupur Cluster in Bhubaneswar district

Grass, Leaf, Reed and Fiber

Konark Cluster in Bhubaneswar district Bhakarasahi Cluster in Khordha district

Embroidery

Patasanipur Cluster in Bhubaneswar district

Conch-Shell Craft

Manamunda Cluster in Boudh district Jagatsinghpur Cluster in Bhubneshwar district Dungarpali Cluster in Balangir district Baipariguda Cluster in Balangir district Resulgarh in Bhubaneswar district

Textile Handloom

Dhenkanal Cluster in Dhenkanal district Dhokra

Paralakhemundi Cluster in Ganjam district Deogaon Cluster in Balangir district Konark Cluster in Bhubaneswar district Pallahara Cluster in Angul district Siriapur Cluster in Puri district

Cane & Bamboo

Baliapatna Cluster in Khurda district Coir Twisting

Balianta Cluster in Khurda district Patchwork

Cuttack Cluster in Bhubaneswar district Jewellery

Bhatimunda Cluster in Bhubaneswar district

Filigree & Silverware

Papdahandi Cluster in Bhubneshwar district

Terracotta

Sector Specific Clusters (Projects under State Government)

Aluminium Park, Angul

Electronics Systems Design & Manufacturing Park

Plastics Park, Paradip

Sea Food Park, Deras

Biotech Park, Bhubaneswar

Apparel Park, Bhadrak

Documents

EXPORT POLICY OF ODISHA - Directorate Of Export Promotion & …depmodisha.nic.in/notice/Draft Export Policy of Odisha... · 2017-04-26 · USD 3.07 bn in 2015 to USD 14.35 bn by 2025