CHENNAI: The government’s One District One Product - District Export Hub (ODOP-DEH) initiative can also focus on capitalising on raw materials and intermediate goods in addition to geographical indication (GI) products, said a top economist at State Bank of India (SBI).
He also said the country should capitalise on China+1 strategy.
In a report, Dr Soumya Kanti Ghosh, Group Chief Economic Adviser said with 55 per cent of India’s gross domestic product (GDP) coming from the service sector, services exports may be given a more prominent place under ODOP-DEH.
Focus of ODOP-DEH on GI products is good, however it can also focus more on capitalising on raw materials and intermediate goods for integrating in global value chains, Ghosh said.
According to him, capitalising on the China+1 strategy of global corporations India should also avoid protectionism and correct inverted duty structures for boosting export competitiveness.
Furthermore, progress results of district level export indicators have to be published on a monthly/quarterly basis in comparison with baseline data of September 2020.
Under ODOP-DEH, products/services with export potential have been identified in 733 districts across the country including agricultural and toy clusters and GI products in these districts.
Exports of Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Sikkim, Telangana, Uttar Pradesh and West Bengal have risen more than thrice since the introduction of ODOP-DEH initiative. These states include all top 10 states with export preparedness except Tamil Nadu whose export increased more than twice.
Ghosh said India’s merchandise exports touched a record $420 billion in FY22. In FY23, exports have so far recorded $229 billion in H1FY23 and at this rate, India’s exports are on par to overtake $420 billion in current fiscal.