Exports from State likely to cross Rs. 1 lakh crore

Exports from State likely to cross Rs. 1 lakh crore

The Hindu

Growth attributed to turnaround in manufacturing sector


Bangalore: Karnataka is all set to cross the Rs. 1 lakh crore mark in exports.

Sources in the State Government told The Hindu here that exports were expected to increase by 30 per cent in 2007-08. Exports increased by 25 per cent in 2005-06 and 26 per cent in 2006-07. The sudden spurt is attributed to turnaround in the manufacturing sector whose exports now are nearly on a par with the information technology (IT) sector.

Total exports in the first 11 months of the current year amounted to around Rs. 82,000 crore, of which the software sector accounted for Rs. 42,000 crore and the manufacturing sector for the remainder. Exports from the State were around the Rs. 1,000 crore mark in the early 80s. Another significant factor is that industrial investment proposals approved in the current financial year crossed the Rs. 1 lakh crore mark for the first time.

The growth in exports over the past decade has been attributed to the dominant role played by the IT sector. The manufacturing sector was bogged down by problems such as lack of working capital and labour, large-scale imports and the lack of a proper market and price for local industrial goods.

Minister for Industries Katta Subramanya Naidu said the manufacturing sector had now come full circle. Even the troubled machine tool industry was seeing a resurgence. "The buoyancy in the industrial sector is a good development for the State and is expected to ease the pressure on the agriculture sector. The State is expected to register a high growth rate of 9.9 per cent in the coming year compared to 9.2 per cent this year, while the growth in agriculture has been around 2 per cent."

Strategic plan

He said that apart from continuing to focus on providing basic infrastructure and other support to the IT and biotechnology sectors, the Government had begun implementing a strategic plan to extend assistance to the manufacturing sector. This included steps to meet their human resource requirements under the recently launched Suvarna Kayaka Udyoga scheme.

Mr. Naidu said the services sector attracted the highest investment in the current year, and with the resurgence in the manufacturing sector, the total investment finalised during the year was Rs. 1,01,280 crore. This had prompted the Government to double the budgetary allocation for the industrial sector from Rs. 207.50 crore in 2006-07 to Rs. 435.60 crore in 2007-08. This was apart from the allocations made to the Karnataka State Financial Corporation and the Public Works Department to improve infrastructure for the benefit of industries.

Helipads to be built

In order to attract major industries to rural areas, the Government plans to construct around 25 helipads in important towns over the next year on government land close to industrial layouts. The Government is also holding discussions with the Civil Aviation Ministry on the construction of airports in some of the district headquarter cities. Road and communication infrastructure apart, industries have said that airports are necessary if they are to expand to rural areas. Exports from State likely to cross Rs. 1 lakh crore

S. Rajendran

Growth attributed to turnaround in manufacturing sector


Bangalore: Karnataka is all set to cross the Rs. 1 lakh crore mark in exports.

Sources in the State Government told The Hindu here that exports were expected to increase by 30 per cent in 2007-08. Exports increased by 25 per cent in 2005-06 and 26 per cent in 2006-07. The sudden spurt is attributed to turnaround in the manufacturing sector whose exports now are nearly on a par with the information technology (IT) sector.

Total exports in the first 11 months of the current year amounted to around Rs. 82,000 crore, of which the software sector accounted for Rs. 42,000 crore and the manufacturing sector for the remainder. Exports from the State were around the Rs. 1,000 crore mark in the early 80s. Another significant factor is that industrial investment proposals approved in the current financial year crossed the Rs. 1 lakh crore mark for the first time.

The growth in exports over the past decade has been attributed to the dominant role played by the IT sector. The manufacturing sector was bogged down by problems such as lack of working capital and labour, large-scale imports and the lack of a proper market and price for local industrial goods.

Minister for Industries Katta Subramanya Naidu said the manufacturing sector had now come full circle. Even the troubled machine tool industry was seeing a resurgence. "The buoyancy in the industrial sector is a good development for the State and is expected to ease the pressure on the agriculture sector. The State is expected to register a high growth rate of 9.9 per cent in the coming year compared to 9.2 per cent this year, while the growth in agriculture has been around 2 per cent."

Strategic plan

He said that apart from continuing to focus on providing basic infrastructure and other support to the IT and biotechnology sectors, the Government had begun implementing a strategic plan to extend assistance to the manufacturing sector. This included steps to meet their human resource requirements under the recently launched Suvarna Kayaka Udyoga scheme.

Mr. Naidu said the services sector attracted the highest investment in the current year, and with the resurgence in the manufacturing sector, the total investment finalised during the year was Rs. 1,01,280 crore. This had prompted the Government to double the budgetary allocation for the industrial sector from Rs. 207.50 crore in 2006-07 to Rs. 435.60 crore in 2007-08. This was apart from the allocations made to the Karnataka State Financial Corporation and the Public Works Department to improve infrastructure for the benefit of industries.

Helipads to be built

In order to attract major industries to rural areas, the Government plans to construct around 25 helipads in important towns over the next year on government land close to industrial layouts. The Government is also holding discussions with the Civil Aviation Ministry on the construction of airports in some of the district headquarter cities. Road and communication infrastructure apart, industries have said that airports are necessary if they are to expand to rural areas.