Export of , software registers steady growth in State

Karnataka has registered a steady growth in export of electronics, computer software & BT; petroleum & petroleum products; and gem and jewellery, which constitute about 84 per cent of the State’s total exports, in 2011-12. But export of silk products and handicrafts have witnessed a marginal decline.

According to Economic Survey of Karnataka 2012-13 report tabled in the State Legislature recently, export of electronics, computer software and BT, which has the largest share in the total exports, has increased to Rs 1,35,660 crore in 2011-12 from Rs 1,05,350 crore in 2010-11.

About Rs 47,987 crore exports have been recorded till September in the current financial year. But its share in the total exports of the State has recorded a marginal decline from 63.51 per cent in 2009-10 to 62 per cent in 2011-12. It is likely to come down even further in the current year in wake of slowdown in the service sector. The economic survey has estimated that the sector would grow at 8.9 per cent in 2012-13 against 9.4 per cent of 2011-12.

The total exports of the State was Rs 2,18,837 crore in 2011-12 against Rs 1,65,523 crore in 2010-11. The total exports till September in 2012-13 was Rs 82,587 crore.
Gems and jewellery exports, which is the second largest export commodity, have increased to Rs 23,728 crore in 2011-12 from Rs 19,896 crore in the previous year. About Rs 10,400 crore of Gems and Jewellery exports have been registered upto September in the current year.

Petroleum and petroleum products exports, too, have witnessed a strong growth – from Rs 14,602 crore in 2010-11 to Rs 23,418 crore in 2011-12, the report stated.

Moving southwards

Except for handicrafts and silk products, all other major commodities of exports like spices, cashew and cashew kernels, coffee products, ready-made garments and engineering products have registered a decent growth in 2011-12.

Sericulture sector has been hit hard in the last few years in the State. Last year, there was drastic dip in prices of silk cocoons and the distressed farmers had hit the streets. The farmers claimed that the sector has been affected due to the Centre’s decision to reduce import duty on silk from 30.66 per cent to five per cent. Handicrafts industry has been facing the problem of short supply of raw materials, especially sandalwood.

Higher degree of openness

The report stated that Karnataka’s openness to export trade is much higher than the all India average.

The State’s degree of openness to export trade is 47 per cent against the all India average of 27 per cent. Degree of openness is measured by the ratio of value of export to Gross State Domestic Ratio (GSDP), the report stated.