A study of Chhattisgarh’s export performance during 2004-05to 2011-12

 

Dr. Nilesh Kumar Tiwari

Chhattisgarh Based Independent Researcher, Raipur

 

ABSTRACT:

Chhattisgarh being 10^th largest state of India by area and 16^th by population has celebrated 14 years of its formation on 1^st November 2014.Chhattisgarh is one of the fastest-developing states in India. Chhattisgarh recorded high growth rates of NSDP (8.2% vs. 7.1% All India over 2002–2008 period) along-with per capita NSDP(6.2% vs. 5.4% All India over 2002-2008).  In this paper an analysis of export performance of Chhattisgarh state has been done considering the period of 2004-05 to 2011-12. The study shows that exports from Chhattisgarh registered robust growth with a CAGR of 8.10% to Rupees 2,553.81 crores in the year 2011-12 from Rupees 1,480.15 crores in 2004-05.

 

 

 

INTRODUCTION:

The economy of Chhattisgarh is the sixteenth largest in India with a Net State Domestic Product (NSDP) of over US dollar 3.3 billion¹. Chhattisgarh is one of the minerals and natural resources rich states of India.The state has a substantial share of India's iron-ore, bauxite, coaland limestone reserves. Around 28 varieties of minerals are found in the state. The maincore-sectors that contribute at most to the gross state domestic product of Chhattisgarh's economy are cement, mining, power, steel, and aluminum. The abundance of coal reserves provides a competitive edge for electricity generation in the state. Chhattisgarh accounts for seventeen per cent of India’s total exports of herbs and medicinal plants. About one-fifth of the iron-ore in the country is mined in the state and one of the best-quality, iron ore deposits in the world is found at the Bailadila mines in the South of Chhattisgarh from where it is exported to Japan and other countries.

 

OBJECTIVE:

Followings are the prime objectives of the study;

·        To understand key trends in export performance of Chhattisgarh state.

·        To understand potential opportunities for select export items from Chhattisgarh, India

·        To suggest measures for promotion of exports from Chhattisgarh

 

Chhattisgarh - Export scenario  

Chhattisgarh registered robust growth with a CAGR of 8.10% to Rupees 2,553.81 crores in the year 2011-12 from Rupees 1,480.15 crores in 2004-05. About one-fifth of the iron-ore in the country is mined in the state and one of the best-quality, iron ore deposits in the world is found at the Bailadila mines in the South of Chhattisgarh from where it is exported to Japan and other countries. The primary export items have been Ferro alloys, Parboiled Rice, Cassia Torea Seed, Iron ore, Steel casting and forgings, Aluminum, silk and handicrafts etc. Raipur being the capital of Chhattisgarh facilitates the process of the custom clearance for “Let Export” by the Customs office at Inland Container Depot, Kapa. The export shipments under HS Code² 7202 (Ferro Silico Manganese) accounted for 61.5% of the exports by value followed by shipments under HS Code 1006 (Parboiled Rice, Cotton Reels) and HS Code 0910 (Cassia Torea Seed) which accounted for 33.3% and 3.2% respectively during February 2012 to March 2013 at ICD Raipur³. Other significant export items from Chhattisgarh has been Plant and Machinery, Galvanized Pipes/ Tubes of Different Wall Thickness, Static Aluminums Melting Holding furnace Parts, Fire Clay Bricks and Shapes, Refractory Material, and Paper Serviettes.

 

Exports from Chhattisgarh has been to Japan (26.2%), Nigeria (10.5%) and Taiwan (10.1%) of total exports during February 2012 to March 2013. Other countries where Chhattisgarh has been exporting its various products are Netherlands, Benin, Italy, South Africa, UAE, Djibouti, Bahrain, Indonesia, Ukraine, Vietnam, Yemen and Iran. The state accounts for 17.0 per cent of India’s total exports of herbs and medicinal plants. ⁴

 

Export Potential and Opportunities⁵:

Handcrafted wood, iron and steel, terra cotta, bell metal and handloom items are major attractions in International market. Only State offering quality fabric in Tassar Silk / Kosa, which has good export potential in European Countries like UK, France, Switzerland, Norvey, USA, Australia, South Africa, Canada, Japan etc.Chhattisgarh State has vast potential to export processed foods, organically grown cereals, herbal and medicinal products.Agriculture products like Rice-presently exported in huge quantities to neighboring countries, Derivatives and intermediates of rice products, Food Processing Industries, Bio-Diesel.Mineral based products like steel and pig iron, steel castings, forging andequipment’s, Steel structural, cement, silico-manganese etc.

 

Steps taken for export promotion Activities:

CSIDC is the nodal agency of the Government of Chhattisgarh for Export Promotion in the State. 

·        Conducted Export Potential Survey of the State done by Indian Institute of Foreign Trade. Steps taken as per recommendation include -

·        CSIDC has started collection of data on capacity and production of export worthy units situated in the State. This information is crucial both for availing central assistance and planning export development in the state.

·        CSIDC is establishing Chhattisgarh Trade Center with facilities for display of products, buyer seller meets and other export related functions.

·        Establishing linkage with Export Promotion Councils, Commodity Boards, Regulatory Bodies, Chambers of Commerce and Industry Associations has been started, so that, updated business information can be made available to interested units.

·        Organizing and participating in national as well as international trade fairs, seminars etc.Organizing training programme on export development / promotion.

 

 

Table 1: Export shipment from Feb 2012 to March 2013 at ICD Raipur⁶

Sub chapter	Description	Total value (USD)	No of shipments	Avg value per shipment
7202	Ferro silico manganese	28,676,740	157	182,654
1006	Parboiled rice, cotton reels	15,529,523	157	98,914
910	Cassia torea seed,	1,469,299	38	38,666
8455	Plant and machinery of 17 hot steel rolling mill in un-assembled condition,fabrication material for structure of re- heating furnace such a c –channelsI beams, m.s. Plates	294,874	19	15,520
7306	Galvanized pipes/ tubes of different wall thickness.	194,761	7	27,823
8417	Static aluminums melting holdingfurnace parts supply	148,390	1	148,390
6902	Fire clay bricks and shapes,refractory material for 1000 tpd integrated cement plant,	123,130	38	3,240
1211	Cassia obtusifolia, cassia toreaseeds	116,278	2	58,139
4818	Paper serviettes (ng) 17 gsm-1 ply-size:29cm, paper serviettes in rolls-white 18 gsm-1 ply - size: 30 cms	38,490	2	19,245
9405	Solar lamps (free samples of no commercial value) value declared for custom purpose only, qty- 4 packages to togo	34	1	34
	Total	46,591,519	422	592,625

 

Table 2: Exports from Chhattisgarh in Rs. Crore: 2004-05 to 2011-12⁷

Particulars	2004-05	2005-06	2006-07	2007-08	2008-09	2009-10	2010-11	2011-12	CAGR 2004-05 to 2011-12
Exports (Rs. Crores)	1480.15	1630.04	1590	2226.84	2960.53	1675.16	3503.71	2553.81	8.10%

 

State Level Export Promotion Committee⁸

The State has a State Level Export Promotion Committee (SLEPC) headed by the Chief Secretary of the State and other senior Government Officials, representative from DGFT, representative from the state cell of Department of Commerce, Government of India, and Export Commissioner of the state, representative from Banks asmembers of the Committee. The SLEPC has a mandate to interact on all matters related to export from the State viz: Regulatory requirements, plans and strategies for development of export from the state Export Facilitation Measures Development of infrastructure for promotion of exports Scrutinize, Prioritize and approve specific projects and monitor implementation of the projects under ASIDE scheme.

 

CONCLUSION:

Exports⁹

The Economic survey 2017-18 of India brings out statistically significant correlation between State’s prosperity with international and inter-state trade. Further states such as Gujarat, Kerala, Maharashtra, Tamil Nadu, Telangana etc. having inter-state trade has shown greater socio-economic development than that of Bihar, Uttar Pradesh, Jharkhand, Madhya Pradesh, Chhattisgarh and Rajasthan. Further the survey highlight’s that states, as mentioned above, having better developed on socio-economic developmental indicators, shows stronger correlation between prosperity and international trade. That means for achieving sustainable and inclusive development, the focus should be encouraging exports from Chhattisgarh through all possible means such as developing environment for exports of commodities, focusing on developing exportable items i.e. products and services, encouraging Geographical Indications (GI) tag for specified items / products. In addition to it, focus should also be on developing proper supply chain of exportable items through logistics support.Since Chhattisgarh has been focusing on development of manufacturing, industrial and Information Technology sector through envisioning State’s policies so that the pace of socio-economic development can be achieved along-with employment generation. Further with development of Multimodal logistics hub facility at Raipur, Chhattisgarh, the climate for exports is anticipated to enhance further on. It can be concluded that in a country such as India which is globally integrated and liberalized economy, the economic survey of India 2017-18 well articulates the significance of two sustainable engines for rapid economic growth being-private investment and exports, requires proper attention at the priority.

 

REFERENCES:

1.       http://www.pppinindia.com/executive-summary-chhattisgarh.php

2.       Harmonized System (HS) of tariff nomenclature or the Harmonized Commodity Description and Coding System is an internationally standardized system of names and numbers to classify traded products.

3.       https://www.zauba.com/india-port-profile/Raipur(INRAI6)

4.       Chhattisgarh, The Mineral Market, India Brand Equity Foundation, MARCH 2013, pp.40http://www.ibef.org/download/Chhattisgarh-110313.pdf

5.       Source: http://www.csidc.in/export.htm

6.       https://www.exportchhattisgarh.in/index.php/export-data/2013-07-27-06-51-32

7.       https://www.exportchhattisgarh.in/index.php/export-data/exports-from-chhattisgarh-charts

8.       http://exportchhattisgarh.in/index.php/slepc

9.       http://www.pppinindia.com/business-ppportunities-chhattisgarh.php

 

Accepted on 30.05.2018            © A&V Publications All right reserved