Untapped Potential of US $900m in Merchandise Exports from Bihar: Exim Bank Study
PATNA: According to a Study released by the Export-Import Bank of India (Exim Bank), merchandise exports from Bihar in 2017-18 were valued at US$ 1.35 billion, a remarkable improvement over the US$ 0.4 billion of exports recorded during 2012-13.
However, there remains an untapped export potential of nearly US$ 900 million.
The study titled “Promoting Exports from Bihar: Insights and Policy Perspectives” was released in Patna by industry department secretary Narmadeshwar Lal.
The Study examines Bihar’s economic profile, analyses the potential for exports from the State, and outlines strategies for creating an enabling environment for exports at the state-level.
The Study identifies a multi-pronged export strategy for the State, built upon six essential dimensions viz. diversification of products and markets; infrastructure leverage and strengthening; capacity building; fiscal incentives; devising an export promotion campaign; and institutional streamlining.
The Study recommends setting up of Inland Container Depots (ICDs) in Muzaffarpur and Bhagalpur; establishing a custom clearance office in the existing ICD in Patna; increasing the warehousing and cold chain infrastructure in the State; and setting up of SEZs in the districts of Patna, Muzaffarpur or Bhagalpur.
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The Study further recommends providing freight equalisation support to exporters for reducing the cost to exports arising out of infrastructural deficiencies.
From the perspective of capacity building, the Study suggests refund of expenses incurred by exporters in the State for obtaining statutory certifications. Further, better branding and marketing of Geographical Indications products in the State is also recommended.