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Uttarakhand Export Policy 2021

Uttarakhand Export Policy 2021

Overview

Located at the foothills of the Himalayan mountain ranges, Uttarakhand shares international borders with China (Tibet) in the north & Nepal in the east and inter-
State boundaries with Himachal Pradesh in the west & northwest and Uttar Pradesh in the south. The State is in close proximity with the National Capital Region which
gives access to important market as well as raw materials.

The State is rich in natural resources and has export potential in the sectors such as organic agricultural products, agro based & processed food, aromatic &medicinal plant based products, pharmaceuticals, nutraceuticals and service sectors like tourism & wellness.After its creation in 2000, Uttarakhand witnessed rapid growth in its Industry sector on the back of policy interventions by the State and Central Government. The
State, through its agency SIIDCUL, developed world class industrial infrastructure. The State has also notified a policy for private industrial estates. The industry
friendly policies and conducive environment for industrial development has helped Uttarakhand emerge as an attractive investment destination.

This has resulted in the Gross State Domestic Product (GSDP) of the State expanding at a compound annual growth rate (CAGR) of 11.16 per cent to INR 2.18 trillion
(US$ 33.76 billion) between 2011-12 and 2017-18. The cumulative FDI inflows in Uttarakhand stood at around US$ 652 million between April 2000 to December 2017.
During 2013-14 to 2017-18, exports from Uttarakhand registered a positive CAGR of 6.79 per cent to reach USD 1.46 billion against a negative growth of -0.89 per cent
in India’s overall exports.

In the Ease of Doing Business ranking conducted by Department for Promotion of Industry and internal trade (DPIIT) in collaboration with World Bank under Business
Reform Action Plan (BRAP) 2019-20, Uttarakhand stood amongst the top-ranking states of India.
In the Export Preparedness Index (EPI) 2020 report released by NITI Aayog, Government of India in August 2020, the State has been recognized as the top performing
State in the Himalayan States category. This was made possible by the presence of basic export facilities & infrastructure, a conducive business & export environment
as well as good export performance by the State.

Being a land locked, exporters of the State have an inherent cost disadvantage over suppliers from other States as they have to incur higher logistics cost in
bringing raw material to their premises as well as shipping out finished products. Despite these challenges, Uttarakhand exported goods worth of approx. INR 16970.8
Cr (US$ Mn 2280) during 2019-20. In the Logistics Ease Across Different States (LEADS) index released by the Ministry of Commerce & Industry, Government of India in March 2019, the State has been placed at 19th position. With this backdrop and aligning with the Central Government’s vision to make India a five trillion-dollar economy, the Government of Uttarakhand intends to extend its support to new and existing exporters of the State for promoting international trade from Uttarakhand. This policy aims at promoting exports from the State by facilitating the exporters by facilitating them with fiscal and non-fiscal support.

Recognizing the important role States have to play in developing the Export eco-system, Ministry of Commerce & Industries, Government of India has proactively
involved the States in the nation`s export promotion efforts. Government of Uttarakhand intends to leverage the various initiatives of the Central government & align
its own efforts with those of the central government.

Policy Vision & Objectives

Vision

To develop Uttarakhand as one of the leading states in exports by leveraging its natural resource profile at domestic as well as global level and creating an adequate
export infrastructure, enabling a friendly ecosystem and promoting trade across emerging sectors.

Objectives

i. Provide a simplified, proactive and responsive institutional mechanism for rapid growth of exports.
ii. Develop new and strengthen existing export infrastructure such as warehouses, inland container depots (ICDs), cold storages, rail-road connectivity from
industrial estates / clusters etc.
iii. Enhance export potential of traditional & focus export sectors such as pharmaceuticals, handicrafts, handlooms, and automobiles through value addition and
quality competitiveness.
iv. Provide fiscal and non-fiscal incentives to exporters to boost exports from Uttarakhand.
v. Provide handholding support to existing and new exporters of the State.
vi. Coordinate with all national and global agencies connected with promotion of exports.

. Policy Targets & Implementation

Policy Targets:

i. Increase share of exports from INR 15,900 Cr in FY 2021 to INR 30,000 Cr in 5 years.
ii. Create additional employment opportunity for 30,000 individuals. Implementation of the Policy
i. This policy will come into effect on the date of its notification and will remain in force for a period of 5 years.
ii. This policy may be modified with necessary amendments or supersession as may be required, and notified from time to time.
iii. In case of any amendment in this policy, if any package of incentives is already committed by the State government to any unit, it shall not be withdrawn and
the unit shall continue to remain entitled to the benefits.

Policy Targets & Implementation

Policy Targets:

i. Increase share of exports from INR 15,900 Cr in FY 2021 to INR 30,000 Cr in 5 years.
ii. Create additional employment opportunity for 30,000 individuals. Implementation of the Policy
i. This policy will come into effect on the date of its notification and will remain in force for a period of 5 years.
ii. This policy may be modified with necessary amendments or supersession as may be required, and notified from time to time.
iii. In case of any amendment in this policy, if any package of incentives is already committed by the State government to any unit, it shall not be withdrawn and
the unit shall continue to remain entitled to the benefits.

Focus Areas / Sectors

The key areas identified in the Uttarakhand Export Strategy prepared by Federation of Indian Export Organization (FIEO) are enlisted below. These are based on
revealed comparative advantage with respect to India and the world and constitute more than 50% of overall exports from Uttarakhand.

A) Agri and Allied

Uttarakhand is one of the leading fruit cultivating states in India. It is ranked no.1 in production of peaches and plums, ranked no.2 in production of walnuts and
pears and ranked no. 3 in apple cultivation amongst all States in India. The State has vast export potential for fruits and agricultural products such as honey,
mushroom, rice, maize cereals, etc., spices, horticulture and floriculture.

i. Fruits:
State has vast potential of export for fruits (Temperate & subtropical) Apple (Uttarkashi), Peach (Nainital), Mango (Haridwar), US Nagar, Litchi
5 | P a g e
(Ramnagar, Nainital), Guava (Udham Singh Nagar).

ii. Vegetables/ Off Season Vegetables Potato:

State has diverse agro climatic conditions which favours wide range of off season cultivation in the hilly areas (February onwards), while seasonal vegetables is
grown in plain areas, Under off-season vegetables cultivation, tomato, peas, capsicum, potato are prominent crops.

iii. Spices:

All over the State, spices crops; like ginger, turmeric, garlic and Lakhori chillies are grown because of conducive climatic conditions. Major production (25-30% of
total Production) of ginger is produced by Tehri District while Lakhori chilli, in Almora district.

iv. Basmati Rice

The State has a variety of Basmati Rice which is famous for its rich aroma and distinctive flavour. The Udham Singh Nagar has Agro climatic conditions where the rice
can be grown organically and has good markets in various parts of the world.

v. Manduva (Finger Millet)
Manduva is cultivated in an area of 88,577 hectares in Uttarakhand and at present its production in the state is 1,29,244 metric tonnes. Found in the mountainous
region of Uttarakhand, Manduwa is a treasure trove of nutrients. It has an important place in the traditional crops here. Manduva is beneficial for people suffering
from heart and diabetes. Its excessive consumption is helpful in the treatment of night blindness of the eyes. Iodine, iron, Protein and fiber are abundant in
Manduva. It is beneficial for children and women. Due to the presence of sufficient nutrients, it is also helpful in protecting against malnutrition. Presently
products like biscuits, roti, halwa, namkeen are prepared from Manduva. Due to its cultivation with organic manure, there is a good demand for Manduva in the foreign
market.

vi. Tea:
The State is known for its orthodox variety of tea that has a distinct taste and aroma and has anti-oxidant properties. The agro-climatic condition in the State is
favourable for this variety. At present, the State has five tea estates (4 are state owned, and others are private owned tea estates) with approximately 2000
hectares area under tea cultivation. The four tea estates, each equipped with a tea processing unit, producing around 1 lakh Kg of tea annually.
Uttarakhand Tea Development Board has developed approximately 1,400 hectares of tea gardens in the hilly areas of the state which shall further boost the export
potential in this sector.

vii. Honey:
The weather conditions of Uttarakhand are favourable for the production of honey throughout the state. About 8950 beekeepers produce 22500 metric
6 tonnes of honey in the state. This industry provides wide employment opportunities to rural youth and landless farmers. The industry also provides by-products
with antioxidant potential such as bee pollen, bee venom, propolis, royal jelly and bee wax. Uttarakhand has immense potential to produce organic honey from high
hills. Different types of honey are produced, such as: Himalayan honey, multi-botanical forest honey, organic honey, herbal honey, various mono-floral honeys etc.
There are about 5000 beekeepers in Uttarakhand and this industry provides wide employment opportunities to the youth of the state.

viii. Mushroom
The climatic conditions prevailing in Uttarakhand are favourable for the production of mushrooms like; Button, milky etc. Presently there are 27 mushroom units
(Production, Manure, Spawn Lab) in the state producing about 16500 metric tonnes of mushrooms. There is great potential for export of processed mushroom products.
Freeze, Dried, Dehydrated, Powdered Mushroom Powder are the major products, which are rich in protein and have good export potential.

ix. Organic:
Absence of use of chemicals & fertilizers by growers in hilly region provides immense scope for promoting organic farming in the State.

x. Food Processing:
Uttarakhand is one of the major producers of fruits and vegetables with an annual surplus production of 4 lakh metric tonnes. Uttarakhand is one of the leading fruit
producing states in India. The availability of robust infrastructure facility in the State including 2 Mega Food Parks, 4 Food Processing Clusters, 58 Food
Processing Units, 19 Cold Storages and 60 Farmer Producer Organizations (NABARD Promoted FPOs) enhances the export potential of the region.

xi. Livestock
There is lot of scope of scientific livestock production and animal breeding is very much due to weather condition of the Uttarakhand. The State may take initiatives
to encourage goat farming, sheep farming, rabbit farming, buffalo farming, etc. This will also give birth to courage woollen industry and leather from the State.

xii. Floriculture:
Uttarakhand has different agro-climatic conditions which are favourable for floriculture. The exquisite varieties of flowers like carnations, lilies, chrysanthemums,
liliums, gladiolus and Indian red roses have high demand in the domestic as well as international markets in the state. There are more than 225 spas in Uttarakhand.
Due to the favourable climatic conditions in Uttarakhand, the productivity of flowers per hectare is high, due to which there is a strong potential for its export.
It is proposed that the State Government will identify and develop common infrastructural facilities, such as pack houses, processing units, cold storages, etc., in
the potential agricultural areas, so as to enable small and medium scale exporters to utilize these facilities, as It cannot bear the expenditure on the
development of such facilities. There is a need to encourage value addition in the agriculture and allied sector and there is a need for incentives to overcome the
logistic connectivity adversity in the State. In line with the ‘Strategy for Implementation of Agriculture Export Policy in the State of Uttarakhand’, the State
Government will prioritize and focus on agricultural export activities in this policy.

B) Wellness & AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, Sowa Rigpa and Homoeopathy)

AYUSH in Uttarakhand is growing at close to 25% to 30% per annum and is likely to continue at the same level for the next 2-3 years. The recent COVID 19 Pandemic has
increased the awareness around incorporating Wellness in everyones day to day life. Uttarakhand is well placed in this regard with Rishikesh already known as the
“Yoga capital of the world”. The State also has 272 Ayurvedic and Unani medicine pharmacies, 206 AYUSH wings being operated in Allopathic hospitals. The State has
geographic advantage in cultivation of aromatic and medicinal plants and is home to more than 200 unique plants with medicinal properties.

C) Pharmaceuticals

Pharmaceutical industry of Uttarakhand caters to 20% of the country’s domestic requirement and the State is on its track to become a global pharma hub. To facilitate
pharmaceutical industries in the State. The State has developed Pharma City, Selaqui Industrial Area, Dehradun with world class infrastructure. The State also
proposed to develop Phase II of the Pharma City in the near future. There are more than 300 pharmaceutical units engaged in manufacturing at Uttarakhand. Currently,
this sector employs more than 1,00,000 people in the State. With such a strong base, this sector has immense potential for boosting Uttarakhand’s image as an export
focused State.

D) Automobile and Allied sector

Uttarakhand is home to auto majors like Hero Motors (world’s biggest 2- wheeler manufacturer operating the world’s largest integrated 2 wheeler plant in Haridwar),
Tata Motors (World’s 2nd largest truck manufacturer), Bajaj Auto (World’s largest 3 wheeler manufacturer), Ashok Leyland (4th largest manufacturer of buses in the
world) and has a presence of a large number of ancillary units in the districts of Udham Singh Nagar & Haridwar. The State offers locational advantage due to its
proximity to important markets of National Capital Region as well as emerging markets of North India.

E) Tourism and Hospitality

Being geographically situated on the foothills of Himalayas, Uttarakhand encompasses in its fold numerous hill stations, wildlife sanctuaries, pilgrimage sites and
hot water springs which attract tourists from India as well as abroad, thus earning foreign exchange for the exchequer.The State can cater to all segments of tourism
sector including adventure & water sports, pilgrimage/ spiritual activities, nature & wildlife, health& wellness, rural tourism and aroma tourism.

i. Film Shooting:

With existence of large number of beautiful locations, Uttarakhand is an ideal destination for films shooting. More than 150 films have already been shot in the
State since its inception.

ii. Yoga Retreats

The ‘Land of Yoga’, Uttarakhand is the perfect place for your body where it will release all the negativity within leaving you calmed, relaxed and refreshed.
Charming hill stations juxtaposed against snow-capped peaks, quaint villages along winding mountain roads, serpentine rivers carving their way through the hills,
world renowned conservation parks like ‘Jim Corbett Tiger National Park’ and ‘Asan Wetland Conservation Reserve’, world heritage sites like ‘Valley of Flowers’ and
‘Nanda Devi Biosphere Reserve’, waterfalls hurtling down slopes and serene lakes shimmering amidst beautiful towns – that’s Uttarakhand for you.

F) Handloom & Handicraft
Uttarakhand has a long tradition of silk production. Known as the “Bowl of Bivoltine Silk in India”, it is the only State in India producing all four kinds of cocoon
viz. Mulberry, Oak Tassar, Muga and Ericulture. With the establishment of a Silk Park in Dehradun district, a well-known infrastructure base has been laid down
through implementation of Silk Emporium, Silk Exchange, Design Studio, Weaving Workshop, Silk Fabric Sale Counter, CFC Yarn Dyeing Unit and CFC Fabric Processing
Unit.

G) Educational Services
Uttarakhand is a leading centre for education and learning in India. The State has many notable schools and institutions offering various professional courses.
Further, the State has a potential for developing itself as an education hub for students from Asia and Africa which will lead to FDI inflows and more

Surveer Pundir (sagar)
Surveer Pundir (sagar)
( 1994-2003) Marketing Consultant (2003-2020) eCommerce Consultant & Coach (2020- onwords) Publisher & Editor -Uttarakhand Business News Network-www.uttaranchaltimes.com
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