Bihar ranks 22nd in NITI Aayog's Export Index

• 31 Jul 2023

Why in News?

Bihar is ranked 22nd overall in the country in the export index released by niti aayog on July 30, 2023.

Key Points:

• According to the index, the highest export in the state is from the Begusarai district. Bihar is slowly moving forward on every scale of exports. At present, Bihar accounts for only 0.52 per cent of the country's total exports, which is planned to be increased to 10 by 2025.
• The state is also slowly moving on other scales of the export index. Bihar ranks 27th in the business ecosystem, 13th in terms of export policy, 25th in the export ecosystem, 29th in export performance and 9th in the exports from landlocked states.
• Niti Aayog has also revealed that exports from Bihar have been increasing since the implementation of 'One District One Product' & 'Cluster Scheme' and there are plans to export from Bihar to 75 countries of the world under the Amrut Mahotsav organized on the occasion of 75 years of Independence.
• It is known that the infrastructure for exports in the state has not yet been developed. Neither any Special Economic Zone (SEZ) has been set up in the state so far, nor has the facility of custom clearance been made available to exporters.
• There is an inland container depot in Bihata town of Patna in the state, but there is no special facility here. There is no provision for freight subsidy to transport products to ports or airports for export, although several central agencies have come forward to help exporters from the state.
• While the Export Promotion Council of Handicrafts (EPCH) has come forward to promote Bihar's handicraft products, the Indian Silk Export Promotion Council (ISEPC) is ready to help the silk exporter.
• Under the central scheme, the government will provide assistance of up to Rs 1.25 lakh to the exporter to participate in the international fair.
• More than a dozen products from Bihar are not moving forward due to the lack of export policy even with a geographical indication (GI) tag. Due to the GI tagging for a particular product of a particular region, the international market is easily available. This gives customer confidence on a global scale.
• Madhubani paintings, Shahi Litchi of Muzaffarpur, Mithila’s Makhana, Sujani of Sitamarhi, Sikki Arts, Bhagalpuri Silk, Katarni Rice, Jardalu Mango, Silav’s Khaja and Magahi Paan etc. have received GI tags.
• Without the GI tag, Bihar exports wheat, rice, maize, babycorn, vegetables, medicines, leather goods and meat as well as petro products.
• It is known that agricultural exports from the state are continuously increasing. Till 2021, agricultural commodities worth Rs 2671 crore have been exported from Bihar. The exports from the state include Shahi Litchi from Muzaffarpur, Katarni Rice from Bhagalpur, Jardalu Mango, wheat, rice, maize, baby corn and vegetables etc.
• The demand for Bihar's handicraft products is happening in many countries of the world. Most of the goods are exported from other states. Now gradually exports have started from Bihar as well. Handicrafts worth Rs 36 crore are being exported from Bihar annually. Efforts are being made to increase it.
• Study-based suggestions of the Exim Bank:
  • Improve the infrastructure to monitor the quality of products according to the international market. Give financial incentives to exporters, and run export promotion campaigns.
  • Establish inland container depots (ICDs) in Muzaffarpur & Bhagalpur and create a custom clearance office in the existing ICD in Patna, and arrange necessary certification for export.
  • Develop special economic zones in Patna, Muzaffarpur and Bhagalpur along with increasing warehousing and cold chain infrastructure in the state.
  • In the absence of infrastructure, the cost of exporters increases. To reduce this, give subsidies in freight rates. If the expenses of exporters increase due to state policy, then refund it.
• Products that account for a share in total exports:
  • Petroleum products 66%
  • Meat 6%
  • Rice 10%
  • Medications 3.7%
  • Wheat 1.3%
  • Fruits and vegetables 1.2%
  • Machinery 0.8%
  • Handicrafts 1.0%