EXPORT-IMPORT BANK OF

OCCASIONAL PAPER NO. 181

PROMOTING EXPORTS FROM : INSIGHTS AND POLICY PERSPECTIVES

This study has been undertaken by Export-Import Bank of India (Exim Bank) in collaboration with ICRA Management Consulting Services Limited (IMaCS).

Exim Bank’s Occasional Paper Series is an attempt to disseminate the findings of research studies carried out in the Bank. The results of research studies can interest exporters, policy makers, industrialists, export promotion agencies as well as researchers. However, views expressed do not necessarily reflect those of the Bank. While reasonable care has been taken to ensure authenticity of information and data, Exim Bank accepts no responsibility for authenticity, accuracy or completeness of such items.

© Export-Import Bank of India March 2017

1 2 CONTENTS

Page No.

List of Tables 5 List of Figures 7 List of Boxes 9 Executive Summary 11 1. Introduction 29 2. Exports Scenario 44 3. Exports Competitiveness Framework for Rajasthan 64 4. Growth Strategies for Exports from Rajasthan 107 Annexure: Generic NTBs prevalent in all Segments 143

Project Team: Mr. S. Prahalathan, Chief General Manager, Research and Analysis Group Mr. Ashish Kumar, Deputy General Manager, Research and Analysis Group Ms. Jahanwi, Manager, Research and Analysis Group

3 4 LIST OF TABLES

Table No. Title Page No.

1 Export Targets for Rajasthan (Rs. Cr.) 14

2 Role of Key Stakeholders 26

3 Contribution of Rajasthan to India’s GDP 30

4 Rajasthan Agriculture Productive Capacity (Lakh Tonnes) 31

5 Industrial Production in Rajasthan (2013-14) 34

6 Articles and Major Areas of Production 35

7 Mineral Production in Rajasthan (Lakh Tonnes) 36

8 Policy Analyses Takeaways 37

9 State Comparison across Critical Enablers of Export Performance 65

10 Definitions of Quadrants 67

11 Export Categories’ Contribution – India to World 68

12 Export Categories’ Contribution – Rajasthan to India 69

13 Rajasthan’s Indexed Position 70

14 Integration of Export Performance Analyses 71

15 Competitiveness Position based on Export Performance Analyses 72

16 NTBs in Textiles and Apparels Segment 96

17 NTBs prevalent in Gems and Jewellery Segment 97

18 NTBs prevalent in Agro, Animal and Food Product Segment 100

19 NTBs prevalent in Chemical Segment 101

20 NTBs prevalent in Auto and Auto Parts (Engineering) Segment 102

21 Recap on Segment Competitiveness 105

5 Table No. Title Page No.

22 Export Target for Rajasthan (Rs. Cr.) 108

23 Segment-Specific Strategies for Growth and Value Addition 116

24 Strategy for Strengthening Supply Side Infrastructure – Segment-Wise 126

25 Strategy for Strengthening Demand Side Infrastructure – Segment-Wise 129

26 Quality Requirements 130

27 Trade Specialization Model 133

28 Export Employment for Rajasthan: 2016-2022 139

29 Role of Key Stakeholders 141

6 LIST OF FIGURES

Figure No. Title Page No.

1 Proposed Structure of REPC 16 2 GSDP (at Constant Price) of Rajasthan vs. India (Rs. ‘000 crore) 30 3 Sectoral Movement - Structure of Rajasthan Economy (%, Rs. ‘000 Cr) 30 4 Industrialization in Rajasthan 33 5 Industry Units in Rajasthan 34 6 Industry Clusters in Rajasthan 35 7 Comparison of Export Trend for Rajasthan and India 45 8 Total Merchandise Exports from Rajasthan 45 9 Sectoral Contribution to State Exports (2015-16) 47 10 Share of Major Sectors in Rajasthan’s Exports (FY09, FY13 and FY16) 47 11 Trend in Export of Textiles from India and Rajasthan 48 12 Trend in Export of Garments from India and Rajasthan 49 13 Trend in Export of Gems and Jewellery from India and Rajasthan 50 14 Trend in Export of Dimensional Stones from India and Rajasthan 52 15 Trend in Export of Handicrafts from India and Rajasthan 53 16 Trend in Export of Carpets from India and Rajasthan 54 17 Trend in Export of Agro and Food Products from India and Rajasthan 55 18 Trend in Export of Chemicals and Allied Products (incl Tyres) from India and Rajasthan 56 19 Trend in Export of Engineering Products from India and Rajasthan 57 20 Trend in Export of Mineral Products from India and Rajasthan 59 21 Trend in Export of Metals (Ferrous and Non- Ferrous) from India and Rajasthan 60

22 Trend in Export of Wool and Woollens from India and Rajasthan 61

23 Trend in Export of Drugs and Pharmaceuticals from India and Rajasthan 61

7 Figure No. Title Page No.

24 Trend in Export of Leather and Leather Products from India and Rajasthan 62

25 Trend in Export of Plastics and Linoleums from India and Rajasthan 63

26 Export Competitiveness Framework 66

27 Textile Value Chain – Rajasthan’s Position 89

28 Gems and Jewellery Products Value Chain – Rajasthan’s Position 90

29 Tourism and Hospitality Value Chain – Rajasthan’s Position 91

30 Dimensional Stones Value Chain – Rajasthan’s Position 91

31 Handicrafts Products Value Chain – Rajasthan’s Position 92

32 Agro and Food Products Value Chain – Rajasthan’s Position 93

33 Export Competitiveness Framework for Rajasthan 106

34 Export Competitiveness Framework for Rajasthan – 2022 107

35 Export Strengthening – 6-Pillared Measures for Rajasthan 110

36 Proposed REPC Structure 113

37 Sectoral Export Employment 2016 and 2022 140

8 LIST OF BOXES

Box No. Title Page No.

1 HS Code Analysis for Textiles Industry 48

2 HS Code Analysis for Garments Industry 50

3 HS Code Analysis for Gems and Jewellery Industry 51

4 HS Code Analysis for Dimensional Stones Industry 52

5 HS Code Analysis for Agro and Food Products Industry 55

6 HS Code Analysis for Chemicals and Allied Products (incl Tyres) Industry 57

7 HS Code Analysis for Engineering Products Industry 58

8 HS Code Analysis for Drugs and Pharmaceuticals Industry 62

9 Exim Bank’s Flagship Financing Programmes 137

9 10 EXECUTIVE SUMMARY

India has been focusing on an States. There is less intervention economic policy that has exports of from the State Governments in domestically value added products terms of overall foreign trade policy and services as one of the key formation. Higher participation of the growth variable. The Government’s State Governments is required for commitment to revive export is trade facilitation, reform of standards reflected in the five-year Foreign regime and more value addition in Trade Policy (FTP) 2015-20 which has the production cycle. Involvement laid down a framework for increasing of States is critical to bridge the gap exports of both services and goods between the capacity of the domestic from India. This policy is in sync with industry and the demand emanating from the international market. a number of proposed domestic and external sector reforms that aim to Realizing the need for an active make India a significant participant in participation of State Government world trade. The target is to increase in overall trade development of the share of India’s merchandise and the country, Ministry of Commerce services exports from the current 2% and Industry, to 3.5 %. has recently constituted a platform to identify and address trade and In the wake of continued export infrastructure gaps which adversely slowdown and fast changing global affect India’s exports. All Indian States market scenario, the Government together with the relevant ministries of India has responded with a series and business associations are the of initiatives. One of the key policy members of this Council for Trade measures that has been initiated Development and Promotion. Through includes calling for greater involvement this platform, the Centre and States of States in pushing exports. will jointly work to synergize efforts As of now, under the federal and take appropriate steps to boost India’s exports. ’s governance, foreign trade related matters are Set against this backdrop, this Study handled by the Central Government has attempted to draw up a strategy whereas the actual production of for promoting exports from the State goods and services happens in of Rajasthan, based on an analytical

11 framework which, inter alia, examines goods, chemical and allied products the State’s current trade profile, its (including tyres), and handicrafts. competitiveness and future potential. Agro and food products, dimensional stones comprising , granites TRENDS IN EXPORTS and articles of stone mica, metals Merchandise exports from India have (ferrous and non-ferrous), and more than doubled from Rs. 8.40 lakh electronics and computer software are crore in 2008-09 to Rs. 17 lakh crore also important sectors having a share in 2015-16, witnessing a Compound of more than 5% each in Rajasthan’s Annual Growth Rate (CAGR) of exports. 11%. During the same period, In terms of services exports, tourism exports from Rajasthan registered and hospitality is a key segment in a marginally better CAGR of 13% Rajasthan and has immense potential to amount to Rs. 36,047 crore in for earning foreign exchange revenue 2015-16. The high growth rate for the State. In fact, Rajasthan has experienced after the economic been steadily gaining prominence in slowdown in 2008-09 has significantly the global markets as an important reduced as the export scenario is tourist destination of India. In 2015, getting competitive and exporters are about 233 lakh foreign tourists arrived facing issues in traditional markets of in India and Rajasthan was host to Europe and the USA. about 6% of this number. A year-on-year (y-o-y) comparison The other major contributor to service of performance indicates that the exports from the State is the IT and growth of exports from Rajasthan ITeS sector. Exports from this sector has fared better than the national have increased from Rs. 1,172 crore average in most years save for 2013- in FY13 to Rs. 2,305 crore in FY16, 14. However, this growth rate seems contributing 0.3% to national exports. to have slowed down during the last EXPORT PROMOTION POLICY three years, reflecting the trend in Although Rajasthan currently has a overall exports from India. small share in India’s total exports, Rajasthan has traditionally been strong the potential for exports from the in exports of handicrafts, gems and State is huge. In order to tap this jewellery, dimensional stones, agro potential, Rajasthan needs to draw products, and textile products. The out an export policy and provide top five export items from Rajasthan incentives specific to the industries accounting for nearly two-thirds of present in the State, and align these exports from the State are textiles with the Central Government policies (including readymade garments), and schemes. The State of Rajasthan gems and jewellery, engineering needs to understand its core strength

12 in export and accordingly propose factor of at least 2.5 by 2022, through item wise incentives. Simultaneous consolidation, diversification and policy formulation at the State level increased value addition of exports, is not new in India. Few States have and generating impactful employment already proposed incentives aimed at opportunities. For this purpose, an improving their shares in the national Export Promotion Policy can be exports basket. formulated based on the following Given the diversified export basket of building blocks: Rajasthan and its landlocked position, • Promote cooperation and unified the Government needs to be more approach to exports amongst proactive in providing support for the relevant departments and development of logistical network and functions; connection to ports in the country. The most imminent support can come in • Leverage and create appropriate the form of providing land, which is infrastructure to achieve targets; owned by the State. Land acquisition • Aim for global quality and is often cited as a major hurdle in standards that will ensure that implementation of many infrastructural the products and services from projects in the country. The State Rajasthan rank amongst the best; can also focus on other important • Build pipeline of skilled human aspects of improving competitivenes resources who can contribute to such as focus on value addition, export growth from the State. robust standards and regulation TARGET FOR EXPORTS system, access to medium and long term finance, branding, and capacity Based on the Vision for exports building of human resources. All these from the State, the export target for metrics need to be ensconced in the Rajasthan is projected at Rs. 1.2 overall policy of export promotion from lakh crore covering merchandise and the State. services. This target has been derived In order to assess the effectiveness based on a bottoms-up approach, of any export strategy, it is critical and has been drilled down to the to have a Vision which sets forth sectoral level. The detailed break-up measurable targets in place. In this of segment-wise targets under two context, the different scenarios, viz. conservative (GoR) can consider enhancing the and optimistic, have been highlighted value of exports from the State by a in Table 1.

13 Table 1: Export Targets for Rajasthan (Rs. Cr.)

Rajasthan’s Rajasthan’s Rajasthan’s Segments Export 2022 Export 2022 Export 2016 Baseline Target Textile and Readymade Garments 6,392 11,104 12,131 Dimensional Stones Marble, Granites and Articles of Stone, 2,904 7,454 9,528 Mica, etc. Gems and Jewellery 5,345 10,933 14,556 Engineering 4,754 10,806 12,943 Chemical and Allied Products 4,145 7,585 10,599 (including Tyres) Handicrafts 3,343 5,946 6,520 Carpet (Durries) 569 908 1,260 Animals Agro and Food Products 3,094 4,695 9,261 Metals -Ferrous and Non-Ferrous 1,777 3,451 6,903 Plastics and Linoleums 636 640 1,106 Drugs and Pharmaceuticals 398 847 937 Minerals - Mineral Fuels, Mineral Oils and Products, Bituminous 31 982 1,965 Substances, Mineral Waxes, Ores, Slags and Ash Leather and Leather Products 230 240 419 Wool and Woollens 78 119 378 Others 68 68 68 Tourism 10,236 15,181 24,939 IT/ITES 2,305 4,184 8,369 Rajasthan’s Exports – Merchandise 33,764 65,779 88,571 Rajasthan’s Exports – Services 12,541 19,366 33,308 Rajasthan Total Exports 46,305 85,145 1,21,879 Source: IMaCS analysis. Data inputs from Ministry of Commerce, UN Comtrade, DGCIS, and Government of Rajasthan

14 POLICY INTERVENTIONS TO Institutional Streamlining ACHIEVE TARGETS The overall ecosystem in Rajasthan The export strategies for Rajasthan would need to be framed in a for meeting the targets and fulfilling manner that propels the State to a the vision have been built around the higher export trajectory. Institutional following six major dimensions: structure comprising the associated • Institutional Streamlining – This State machineries would be pivotal in relates to tweaking the focus this process. In Rajasthan’s context, and enhancing the efficiency the nodal bodies which could ensure of institutions with a view to fulfilment of the outlined targets streamline their functions, which include Rajasthan State Industrial would lead to better export Development and Investment performance. Corporation (RIICO), Bureau of • Focus on Growth and Markets – Investment Promotion (BIP), Export This dimension adds an element Promotion Councils (EPC) having of value addition and sharpens regional offices in Rajasthan, State the export target growth with and cluster specific associations such focus on specific markets. as Rajasthan Chamber of Commerce and Industry, Rajasthan Financial • Infrastructure Leverage and Corporation, and Rajasthan Khadi and Strengthening – This pertains to Village Industries Board. Additionally, strategies that aim to leverage and use the existing infrastructure, the draft Export Promotion Policy 2017 and create new infrastructure to intends to incubate the Rajasthan boost export performance. Export Promotion Council (REPC) that is envisaged to be set-up with • Capacity Building – This the participation of the Government, dimension outlines the need exporters and industry in order to for capacity building of human provide a forum for exchange of views, resources to improve exports. sharing of information and removing • Facilitating Access to Finance – hindrances and obstacles faced by This element outlines the need for the exporters. The membership to the easy access to financing options Council is proposed to be on an annual at competitive pricing for the subscription basis for exporting units exporters. of the State. The above mentioned • Export Promotion Campaign – This entities would need to come together intervention focuses on creating and work in sync with a view to awareness about branding and create a robust export ecosystem in promotion strategies. the State.

15 Rajasthan Export Promotion • Information and Technology Council Division: This division will manage systems for providing The REPC proposed under the Export information to stakeholders, Promotion Policy of Rajasthan has including websites, skills and focus on four operational areas. training modules. • Sectoral Division: This division In order to strengthen the institutional will manage the delivery of export structure, the following new functions promotion products and services can be included as part of the to the exporting sectors. proposed REPC structure (Figure 1): • Regional Division: This division • Creation of independent and fully will work with the trade and functional department focusing commerce related offices located on merchandise and services in India and abroad through the exports under the proposed REPC Embassies / High Commissions, structure. The merchandise EPCs, Export-Import Bank of India wing could enhance focus on (Exim Bank) and other chambers merchandise export segments of commerce and industry. by coordinating with state bodies, • Marketing Division: This division exporters, etc, while the services will oversee all marketing wing could focus on services activities, including trade export. These wings could outline missions, trade shows, trade fairs strategies for ensuring that targets and Buyers-Sellers meets. are met in their respective areas.

Figure 1 : Proposed Structure of REPC

16 These shall also provide advisory also be industry leaders/ services. retired personnel) • Setting up of Programme who will work with Management Unit (PMU) to review, stakeholders for boosting monitor and assess the impact the technology and of export initiatives. The PMU innovation quotient could integrate all the functions of o Provide pointers on value the divisions of REPC. The PMU addition could also undertake continuous o Enhance global monitoring of the export targets, competitiveness of local their achievements and any key products / services constraints for the same on a half  Capacity Building Division yearly schedule. The PMU could o Work with the National also strategize with the REPC Skill Development and the Department of Industries, Council (NSDC), Sector Government of Rajasthan for Skill Council and State liasioning with national export level institutes to build bodies on issues of importance. export relevant skills in • The Export Connect wing could the State offer critical export landscape  Finance Wing oriented support services like quality, technology, capacity o Create / integrate export building and export financing. financing options in the The Export Connect wing could State comprise separate divisions for o Disseminate key inputs each of the support services. on how to avail the same  Quality Division with procedural details o Enhance focus on quality  Branding, Promotion and control and inspection Marketing protocols Integrated Export Promotion Portal o Disseminate the – Rajasthan State Export Connect key inputs to export Portal (Raj STEP) stakeholders To supplement the institutional  Technology Division strengthening, a one stop information o This shall have linkages portal for exports could be established. with the quality division, This portal could enable exporters to and will include subject improve their know-how and access matter experts (who may information pertaining to markets,

17 finance, export promotion programs, value addition. There are two broad event details, etc. Advisory services methods of export diversification: can also be provided through the • Horizontal diversification, which portal. This portal can be directly takes place within the same sector administered and managed by the IT (primary, secondary or tertiary) Division of REPC in consultation with by adding new products in the various EPCs. existing export basket within the There are already several portals same sector. that aid in disseminating export • Vertical diversification, which related inputs at the all India level. entails a shift from the primary to These include the Federation of the secondary or tertiary sector, Indian Export Organizations (FIEO) essentially implying processing trade portal, Confederation of Indian of domestic manufactured goods. Industry (CII) portal / informative web It entails contriving further uses pages and EXIM Mitra of Exim Bank, for existing products by means of amongst others. Segment specific increased value added activities standards are also disseminated such as processing, marketing or through websites like FSSAI, etc. The other services. RajSTEP portal may provide link to access other portals like EXIM Mitra, There are several sectors where FIEO, CII, etc and supplement the Rajasthan can initiate measures information with key State specific that engender horizontal export details. Rajasthan’s portal will be diversification. Rajasthan has limited unique in terms of highlighting State presence in the processed food specific export landscape details, segment, which presents a case providing support to exporters in for capacity building and horizontal local language, and highlighting State diversification in the higher value specific nodal details and links to key added areas of ready to eat food, institutions. processed food, health and wellness food products and organic food Focus on Growth and Value products, all of which have a huge Addition export potential. In the dimensional To expand the export basket, it is of stones segment, the current export utmost importance to first enhance basket comprising crude and roughly competitiveness and then ensure its trimmed granite, and sustainability. One of the efficient marble, can be expanded to include ways to widen export opportunities worked and processed granite and is to look at diversification based on marble. Further, exporters from the

18 State can target high value products the gems and jewellery segment, in the chemical and allied products establishing design development segment, including agrochemicals, centre will be essential to support dyes and pigments, textile chemicals, diversification of exports towards personal care ingredients and processed jewellery, coloured gem construction chemicals. Exporters stones, pearls, synthetic stones, of engineering goods can consider costume fashion jewellery, non- building capacity in the electronics gold jewellery and rough diamonds. and engineering plastics segment Development of quality tourism for the exports market. In the textiles infrastructure at tourist destinations sector, focus on readymade garments and circuits in the State will be critical and other value added and specialty for improving tourism revenues, fabrics can help boost value of exports especially when targeting new from the State. avenues such as adventure tourism, rural and eco-tourism and other A substantial opportunity also exists innovative tourism categories. for vertical diversification of exports. The bigger and dynamic markets Infrastructure Leverage and of the EU, Canada, South Korea, Strengthening Australia and New Zealand can be This dimension focuses on leveraging further leveraged by exporters from and strengthening of existing the State for vertical diversification infrastructure for tapping markets of agro and agro based exports. and diversifying the export basket. In case of dimensional stones, the The State of Rajasthan has already markets of the EU, Egypt, Tanzania, invested in export oriented South Africa, Russia and Canada infrastructure. To meet the export can be targeted. China and Latin targets, it is essential to adopt a two American countries can be targeted pronged approach of leveraging for enhancing export revenues from the existing infrastructure, and the handicrafts and carpets segment. simultaneously creating segment- Export diversification in the textiles specific need based infrastructure. segment can also be achieved by focusing on vibrant markets of Japan, Infrastructure Leverage Africa and South Korea. It is important to analyse the scope Facilitating horizontal and vertical for leveraging existing infrastructure diversification would entail suitable so that the investment in creating interventions from all relevant needless infrastructure may be stakeholders from the State. In curtailed and appropriate investments

19 can be planned. Some of the key Infrastructure Strengthening leverage measures are outlined Infrastructure strengthening can be below: undertaken across two dimensions: • Use the existing Inland Container • Supply Driven Infrastructure – Depot (ICD) at more This is the infrastructure required efficiently by putting in proper by the exporters in the State like procedures and time bound warehouse, cold chain, ICDs, etc. activities. As a result of the o Cold Chain and Warehouse: usage challenges at the ICD, Cold chain infrastructure currently, most of the exporters and warehouses will be are exporting either through ports critical for the agro and agro in Gujarat or using air cargo from based industry. Dimensional Delhi. stones also require quality • Leverage common infrastructure storage facilities both on-site available in Export Promotion as well as post processing. Industrial Park and product Hence, creating warehouses specific industrial parks to to support production and ensure that small units do not exports would be a crucial invest in replicating infrastructrue but rather invest in boosting element of strengthening production and quality. existing infrastructure. o ICDs: There is need for • Utilize the exisitng Testing Facilities, especially in gems and effective and efficient jewellery. Currently for quality utilization of the existing checks, gems and jewellery items ICDs in the State. An ICD are sent to Mumbai, which leads needs to be created near to considerable loss of time. the Bhiwadi and Neemrana region to support the growth • The infrastructure developed by Delhi Mumbai Industrial of the auto industry in the Corridor (DMIC) will include area. Further, dry ports can export infrastructure such as be created at Bhilwara and warehousing (in ) and for facilitating textile logistics that will connect it to the exports. freight corridor. These can be o Multi-Modal Logistics Hub: A leveraged wherever possible. multi modal logistics hubs can

20 be promoted around areas o Design Labs: Indian Institute such as Udaipur, Jodhpur, of Gems and Jewellery can etc so as to provide easy and consider offering advisory convenient transport facility to services pertaining to design, industrial units in the region. technology and management This will facilitate transferring to gems and jewellery products from the State to exporters from the State. various ports and off takers Similar services can be in Gujarat, Maharashtra, offered by the Indian Institute Delhi, etc. of Crafts and Design to handicraft exporters from the o Processing Infrastructure/ State. There is also a need Technology: Limited food to establish carpet design processing facilities in the institute and textile design State creates a need for labs in the State. investments in processing infrastructure for agro and o Quality Labs: Quality labs agro based industries. can be set up to test quality Processing infrastructure of products and ensure that will also be required for they comply with international supporting cutting and standards and certifications. finishing of dimensional In the agro and agro based stones in the State. There industry, testing can be is also a need to establish undertaken for standards a Gem bourse in Jaipur like USFDA, HACCP, etc. In which has customs, banks, dimensional stones segment, certification, dealing/auction provisions can be made for rooms and other facilities in a international certifications flatted complex. like Conformité Européene (CE) certification. o Utilities: Power, water, road o Testing Centres: Marble and rail network needs to be granite testing centres improved for strengthening of can be set up for checking overall logistics in the State. parameters like hardness, • Demand Driven Infrastructure – modulus rapture, etc. There This is the infrastructure required is also a need for multi to satisfy the demands in the sector testing facility in key destination markets, like design export oriented sectors such institutes, quality labs, testing as textile, handicrafts and labs, etc. carpets.

21 Standards, Regulations and Quality growth targets for the State are met is to enable the availability of skilled Various quality requirements need to and productive human resources be fulfilled by the exporters in the State. across various export segments. The Many export destinations prescribe capacity building initiatives could be export specifications which need to undertaken across two areas: adhering be adhered to. It is the responsibility to the national skill framework, and of stakeholders to ensure that these focused skill development through standards are met. trade facilitation centres. In India, the Export Inspection Council (EIC) is responsible for Quality Control Adhering to National Skill and Inspection. EIC is an advisory Framework body to the Central Government There is an evolving National Skill which notifies commodities which will Framework in India that looks at be subject to quality control and/ or standardizing all skill development inspection prior to export, establishes initiatives in the country. These quality standards for such notified standards are set by the National commodities, and specifies the type Occupational Standards (NOS) of of quality control and / or inspection to the Sector Skill Councils (SSC). be applied to such commodities. SSCs are set up as autonomous Critical inputs on export including industry-led bodies by NSDC. SSCs documentation, time lines, cost create Occupational Standards involved, etc should be disseminated and Qualification Bodies, develop to concerned exporters through the competency framework, conduct portal by REPC. All the details can ‘Train the Trainer’ programs, organise be hosted as a one-click icon on the skill gap studies, and assess and portal. Online help / call centre system certify trainees on the curriculum can also be established to clarify aligned to NOS1. doubts. Advisory support can also be The NOS sets out measurable extended to first time exporters. One- performance outcomes towards which day training and awareness drive an individual is expected to work in a can also be conducted at the district given occupation or job role. These industry centres. are valuable tools to be used as Capacity Building benchmarks for qualifications as well One of the most important as for defining roles at work. The NOS requirements to ensure that the export are used to describe good practice

1Source: Ministry of Skill Development and Entrepreneurship

22 in particular areas of work, set out a standards and processes which are statement of competence, provide aligned to the NOS. This stability in the resource for a variety of workforce supply of personnel will pave the way management and quality control tools, for initiatives that can look at further offer a framework for training and strengthening of export performance. development, and form the basis of all In fact, these centres can also leverage qualification frameworks. resources from the Centre for WTO Studies which conducts programmes The key export segments in Rajasthan on several export related focus areas require immediate skill development like Trade Facilitation, Technology efforts, and it is imperative that the Transfer, Trade and Investment training delivered is adhered to the Policies, Agreement on Sanitary NOS that are developed by various and Phytosanitary Measures, Anti- SSCs. This is critical in the export dumping, Safeguards, etc. context because NOS are formed by incorporating requisite international Branding and Export Promotion and national standards of performance Campaign which are necessary when skilling For a land-locked State like Rajasthan, for exports. These reflect industry it is difficult to attract investment in demands, and are dynamic in nature export units with alternatives aplenty which ensures that changing needs for an investor to choose from. are also met. Established destinations such as Focused Skill Development through Gujarat, Maharashtra, Tamil Nadu Trade Facilitation Centres and Karnataka are riding on the advantages of infrastructure and The objective of this intervention policy support. Rajasthan needs to is to enhance the skill level of key effectively brand itself and utilize the personnel involved in export across resources to widen its prospects in the major segments. One of the the coming decade. Some of the key models that can be adopted to ensure initiatives that may be incubated in this is the Trade Specialization Model addition to the ongoing initiatives are: (TSM). The TSM will look at building the key skills in areas where they E-commerce Leverage: Online are inadequate, thereby enabling an opportunities in traditionally strong appropriately skilled human resource sectors such as gems and jewellery, pipeline – especially in domains handicrafts, carpets, etc are yet to where export is critical. For this be tapped completely. While there purpose, Trade Specialization Centres are a significant number of fairs and (TSC) can initiate large scale skill exhibitions that the State artisans are building processes and adhere to the exposed to, access through online

23 platform can also be considered. The at the State and the national level important step is to create awareness where entrepreneurs get funding among MSMEs regarding market for participating in trade fairs. These place and customer relationship initiatives have been proven to management. assist exporters for export promotion activities. State specific schemes Branding: Brand-building and for sectors such as Textile, Agro promotion is important for building and Food, Gem and Jewellery, and long term export attractiveness and, Handicrafts can be initiated by the can be seen across three dimensions local body of the respective EPCs in - National Level initiatives, State Rajasthan. The Draft Export Policy Level initiatives, and efforts at the already sets the course for this. Product Level i.e. individual company However, implementation needs to brands. From the State’s perspective, be made segment specific. The EPCs the Government of Rajasthan in in the State can also work with the partnership with the EPCs, Exim Bank Department of Commerce to develop and CII, could consider showcasing their international campaign. opportunities that exist in Rajasthan on the export front. Individual company Facilitating Access to Finance: brands also need to be created. Support from Exim Bank The Government can encourage Several flagship programmes of Exim development of brands by providing Bank, such as Lines of Credit, and incentives for brand-development Buyer’s Credit under NEIA can help expenditure with appropriate caps. propel medium and long term exports Promotion of Clusters: For from the State, and create export segments like carpets, handicrafts, opportunities for Indian companies. gems and jewellery, agro products, Lines of Credit (LOC) the entrepreneurs exist at the Benefits from the LOC program can grassroots level and at times work accrue to exporters from Rajasthan in in silos. Cluster formation must be several key areas. For example, in the encouraged by REPC and EPCs so cement sector, Exim Bank has several that common infrastructure can be operative LOCs in the countries of created and utilized so that products Djibouti, DR Congo, Central African could also get integrated. This can Republic, and the Republic of Congo. also help facilitate access to finance Exporters from the State can tap such and usher formalization of segments. opportunities. In fact, Rajasthan is International Event Participation best placed to take advantage of such Fund: Various market development opportunities as the State is among assistance schemes are initiated the top producers of cement in India.

24 Under the LOC program, several services, and (iv) supplies, primarily countries also seek capital goods by way of capital goods and industrial imports, which can be supplied by manufactures. the exporters from Rajasthan. Project exports from the State can also be As noted earlier, there is substantial enhanced through the LOC program. potential for engineering exports from Project exports are vital conduits the State. However, the scope of for exporting high-value machinery, these exports is fairly limited as the labour, expertise, and technology, developing countries are the major especially since growth in global markets for India’s project exports, merchandise exports remained below and these countries demand medium- 3% for the fourth consecutive year in to long-term credits. With the BC-NEIA 2016. product, project exporters from the Overseas Investment Finance (OIF) State can venture into new markets and help diversify the exports. While the State has substantial technology-intensive exports, it will IMPACT ON EMPLOYMENT AND need to move up the ladder in terms JOB CREATION of technology. Since investment in R&D has high gestation period, The export employment for the State the OIF programme of the Bank in 2016 was about 3.1 million and can help companies get access to this is expected to increase to about high technology by way of inorganic 5.3 million by 2022, in line with the growth through the mergers and increased export targets envisaged acquisition route overseas. Exporters for Rajasthan. The incremental in Rajasthan can also achieve vertical employment generated during the integration through their overseas said time period is about 2.2 million, investments which will improve their of which textiles, engineering and efficiency and margins. dimensional stones account for Buyer’s Credit under NEIA (BC- a significant share. In terms of NEIA) economic structure, around 75% Enterprises involved in large scale of export employment is expected export infrastructure projects in the to be contributed by manufacturing energy, resources and port sectors and services. In terms of sectors, continue to look at the Export Credit the competitive segments of tourism, Agencies to supplement and facilitate dimensional stones, engineering, finance. Exports of projects and textile, agro, and gems and jewellery services can be broadly categorized are expected to show significant into (i) civil construction projects, (ii) increase in export employment from turnkey projects, (iii) consultancy 2016 to 2022.

25 ROLE OF STAKEHOLDERS suggested interventions and ensure In the export landscape of the State, that the State’s exports become there are institutional as well as more competitive at the national and non-institutional stakeholders who international level. contribute to the export performance. WAY FORWARD In light of the vision, targets and proposed interventions, the role of The Government of Rajasthan has key stakeholders has been reiterated identified exports as one of the thrust in Table 2. areas. The State Export Promotion The above stakeholders must Policy can provide a unified approach holistically enhance the export to realisation of the State’s export culture in Rajasthan, implement the potential.

Table 2 : Role of Key Stakeholders

Key Key Role Stakeholders

• Formulate actionable trade policy and review the same periodically in light of various Free Trade Agreements, Non-Tariff Barriers, etc in consultation with the State Government Central • Develop, Disseminate and Monitor State specific export data Government • Provide assistance in capacity building of units through EPCs – Ministry of Commerce, • Collaborate with the State and identify specific export opportunity DGCIS, DGFT. areas and strategies • Provide assistance in mapping of export infrastructure and debottlenecking of supply related constraints

• Monitor the State's performance on export targets • Assess impact of various State/sector specific export policies Department • Review existing bilateral/multilateral agreements and its impact on of Industries, Rajasthan. Provide regular update of this to the Ministry of Commerce State and Industry. Government • Provide assistance in setting up of new centres/ extension centres/ campuses or branches of R&D institutes having relevance for exports

26 • Liaison with the National Committee on Trade Facilitation on relevant issues • Liaison with the Council for Trade and Development under the Ministry of Commerce to map out the States’ infrastructure requirements and identify key gaps • Offer single window clearance for fiscal support in consultation with RIICO and BIP • Facilitate the establishment of State Level Export Advisory Committee

REPC • Undertake regular impact assessment in consultation with the Department of Industries • Facilitate training in Export Documentation and Awareness • Publish State Exporters’ Directory • Facilitate setting up of offices of different product specific EPCs in the State • Map existing export infrastructure in the State to actual requirements and identify gaps • Host and maintain export portal • Technical consultancy for project identification and technical tie up • Facilite government clearances

RIICO • Merchant banking and financial tie–ups for access to finance • Provide support to REPC on all matters of export • Continue site selection and acquisition of land

• Continue promotion and development of respective segments • Work closely with REPC on export related issues and concerns EPCs • Work closely with exporters in skill training • Promote clusters development with assistance from various Central and State specific initiatives • Share destination specific issues with REPC • Share export and import data for policy formulation Exporters • Participate in impact assessment studies • Enhance awareness on various schemes and fiscal benefits

• Leverage existing infrastructure for training Skill providers • EPC to actively engage with NSDC for training and SSC for certification • Focus on formal assessments and certifications

27 Institutional streamlining will form a mix of standardisation, synergy the pivot for the Export Promotion and sustained adherence to skill Strategy. In this regard, the role of development initiatives, and thereby REPC would be critical in managing bridge the existing skill gaps in the the export promotion activities, State. overseeing the marketing activities, managing systems for providing Apart from this, the State must information, and monitoring the impact relentlessly push the branding and assessment. export promotion campaign for further enhancing the quantum of exports The Export Promotion Strategy from the State. This can be achieved envisages accelerated across-the- through leveraging of e-commerce board engagement for expanding the platforms and multi-layered brand State’s export base. This includes building. Market development infrastructural upgradation and assistance schemes provided at strengthening of standards. Given various levels of governance need that tariffs across the world are either to be blended to match the upbeat already too low or declining in the growth projections of the Export face of globalisation, adhering to Promotion Strategy. standards will be crucial for improving market access. It will therefore be Finance will also play an important essential for the State of Rajasthan role in harnessing the export potential to streamline standards regulations of the State, especially in the context and quality assessment system of medium and long term exports. The at the State level, and align it with various flagship programmes of Exim the strategies of the Ministry of Bank can create export opportunities Commerce, Government of India. for exporters from the State, and This will require close consultations thereby provide the much needed fillip with national level standard setting to higher-value added exports. bodies. Strengthening of supply and demand driven infrastructure can Collectively, these strategies can help also help enhance the State’s export the State of Rajasthan in scripting a competitiveness, and boost value new narrative of export resurgence added exports from the State. together with employment generation. Human resources form another major The growth of 2.5 times in the value area of intervention for realising the of exports by 2022 shall translate State’s exports targets. There is a into substantive outcomes which need for skilled and productive human shall have a bearing on the overall resources across all segments of the macroeconomics of the State, and as export value chain. Adoption of Trade a corollary, on the overall development Specialization Model can provide of the Indian economy.

28 1. INTRODUCTION

Rajasthan is the largest state of India The burgeoning tourism industry has in geographical terms. The State has given a fillip to the services sector abundant natural resources and a of the State. As a result, Rajasthan’s vast pool of labour force. Coupled with economy is transitioning from being a favorable policy environment, the a primary sector oriented economy to State is at the cusp of a turnaround one dominated by the services sector. Driven by robust performance in the in economic performance, backed services segment, the tertiary sector by a strong thrust on exports. The has increased its contribution to the macroeconomic improvement over State’s GSDP from 38% in 2004-05 to the past several years imparts a 44% in 2014-15. At the same time, the strong foundation for pushing the share of both primary and secondary exports from the State to an elevated sector has declined, albeit marginally trajectory. in the case of the latter (Figure 3). MACROECONOMIC PROFILE AGRICULTURE AND ALLIED As evinced by the data given in ACTIVITIES Figure 2, the output of the State has Though the primary sector’s consistently increased, registering a contribution to the State’s GSDP CAGR of about 8% over the 10 year is reducing, the State still boasts horizon (2004-05 to 2014-15) and of significant productive capacity now contributes to about 5% of the in cereals and pulses (Table 4). country’s output. Rajasthan has nine agro-climatic zones, which allow cultivation of wide An analysis of the contribution of array of crops. The State is the largest Rajasthan to India’s GDP over the last producer of rapeseed, bajra, and guar decade indicates that the State has seed. It is also the second largest been able to improve its contribution producer of oilseeds and spices, and from around 4.55% in 2004-05 to the third largest producer of soya bean 5.27% in 2014-15 (Table 3). and coarse cereals in India2.

2India Brand Equity Foundation

29 Figure 2: GSDP (at Constant Price) of Rajasthan vs. India (Rs. ‘000 crore)

Source: Central Statistics Office, Government of India. Base year of 2004-05 considered for consistency.

Table 3: Contribution of Rajasthan to India’s GDP

Base Year: 2004-05 Year GDP (Rs. Cr.) GSDP - Rajasthan % Contribution (Rs. Cr.) 2004-05 2,807,530 127,746 4.55% 2010-11 4,682,598 213,079 4.55% 2014-15 5,163,851 272,227 5.27%

Source: Central Statistics Office, Government of India

Figure 3: Sectoral Movement - Structure of Rajasthan Economy (%, Rs. '000 Cr)

Source: Central Statistics Office. Base year of 2004-05 considered for consistency

30 Table 4: Rajasthan Agriculture Productive Capacity (Lakh Tonnes)

Crop 2011-12 2012-13 2013-14 2014-15 Major Producing Districts (Estimate)

CEREALS 195.72 180.61 182.15 178.93

Kharif 86.22 63.36 62.53 68.16

Hanumangarh, Bundi, Kota, Rice 2.53 2.23 3.13 3.16 Ganganagar, Banswara, Dungarpur, Baran

Jowar 4.10 4.20 3.57 4.55 , Bharatpur, Pali, Bhilwara

Jaipur, Nagaur, , Sikar, Karauli, Bajra 63.02 38.39 41.18 45.54 Jhunjhunu

Chittorgarh, Bhilwara, Udaipur, Maize 16.52 18.47 14.64 14.89 Banswara

Rabi 109.50 117.25 119.62 110.76

Ganganagar, Alwar, Bharatpur, Bundi, Wheat 101.61 107.67 110.20 98.69 Baran, Kota, Jaipur, Chittorgarh

Jaipur, Ganganagar, Hanumangarh, Barley 7.89 9.58 9.42 12.07 Jhunjhunu, Nagaur, Bhilwara

PULSES 23.53 19.57 24.71 21.94

Kharif 13.14 6.37 7.73 9.02

Moong 6.47 3.89 5.47 2.34 Nagaur, Jodhpur, Jalore, Pali, Ajmer

Bhilwara, Banswara, Dungarpur, Urad 4.32 0.94 1.32 1.27 Bundi, Jhalawar

Churu, Jhunjhunu, , Nagaur, Moth 4.47 0.75 0.12 5.06 Jodhpur, Barmer

Chowla 0.73 0.64 0.73 0.25 Sikar, Jhunjhunu, Nagaur, Jaipur

Banswara, Udaipur, Alwar, Dholpur, Arhar-tur 0.15 0.15 0.09 0.10 Pratapgarh

Rabi 10.39 13.20 16.98 12.92

Bikaner, Churu, Ganganagar, Gram 9.90 12.77 16.40 12.53 Hanumangarh, Jhunjhunu

Bundi, Jhalawar, Bhilwara, Bharatpur, Masur 0.24 0.38 0.36 0.39 Chittorgarh

Others 0.25 0.05 0.22 -

FOOD 219.25 200.18 206.86 200.87 GRAINS

31 Crop 2011-12 2012-13 2013-14 2014-15 Major Producing Districts (Estimate)

Kharif 99.35 69.73 70.26 77.18

Rabi 119.89 130.45 136.60 123.69

OILSEEDS 57.65 63.64 60.12 62.28

Kharif 27.87 25.48 22.12 24.01

Pali, Sawai Madhopur, Karauli, Tonk, Sesamum 1.66 1.22 0.72 0.95 Jodhpur

Bikaner, Jaipur, Sikar, Jodhpur, Groundnut 8.05 6.16 9.01 10.24 Chittorgarh, Nagaur

Jhalawar, Baran, Kota, Chittorgarh, Soyabean 13.85 14.69 9.75 9.73 Bundi

Castor Seed 4.30 3.41 2.63 3.09 Jalore, Sirohi, Hanumangarh, Barmer

Rabi 29.78 38.16 38.01 38.27

Rape and Alwar, Bharatpur, Sri Ganganagar, 29.50 37.60 36.22 37.36 Mustard Sawai Madhopur, Tonk, Baran, Kota

Taramira 0.26 0.55 1.76 0.89 Sri Ganganagar, Tonk, Jaipur, Bikaner

Linseed 0.01 0.01 0.03 0.02 Nagaur, Kota, Bundi, Chittorgarh

OTHERS

Cotton (In Hanumangarh, Sri Ganganagar, 17.31 15.28 12.87 14.44 Lakh Bales) Nagaur, Bharatpur

Bundi, Sri Ganganagar, Chittorgarh, Sugarcane 4.51 4.02 3.63 2.43 Udaipur, Rajsamand

Hanumangarh, Bikaner, Sri Guar Seed 18.48 20.23 28.62 27.96 Ganganagar, Nagaur

Source: Rajasthan at a Glance 2016, Department of Information and Public Relations, Government of Rajasthan

32 The State also has substantial which have witnessed high growths livestock produce, accounting for a (Figure 4). significant share at the national level. The industrial production capacity of With 145 lakh tonnes of production the State across large and medium in 2013-14, the State accounted for industries was estimated to be about 10.53% of the national milk production. Rs. 1.13 lakh crore in 2013-14. The State also produced 150 lakh kg Chemical and fertilizers account for of wool in 2013-14, which was 28.4% the largest share in the total production of the national production. In case of value, followed by engineering and meat and eggs, the State had a share fabrication, food products (including of 1.48% each in India’s total. alcohol) and cement and cement products (Table 5). INDUSTRIAL ACTIVITIES There has also been a marked While the secondary sector’s share upswing in the number of registered in the State’s GSDP has declined small scale industries (SSIs) in the marginally over the ten year horizon, State (Figure 5). The importance of the State has undergone significant SSIs for the economy of Rajasthan changes in the industrial landscape. is evident from the fact that over 70% Since the announcement of the of industrial growth emanate from the New Industrial Policy in 2003, there four regions of Ganganagar, Jaipur, has been increased investments in Bhilwara and Udaipur which have a large and medium scale industries, predominance of such units.

Figure 4: Industrialization in Rajasthan

Source: IMaCS Analysis

33 Table 5: Industrial Production in Rajasthan (2013-14)

Major Items Production Value (in Rs. Cr.) Cement and Cement Products 11,285 Chemicals and Fertilizers 37,659 Electricals and Electronics 3,298 Engineering and Fabrication 18,943 Food Products incl. Alcohol 13,422 Healthcare 804 Marble, Granite and Others 1,252 Mining and Minerals 7,972 Other Industries (Not Specified) 5,260 Plastic and Rubber 3,310 Textiles 9,981 Total 113,186 Source: Rajasthan at a Glance 2016, Department of Information and Public Relations, Government of Rajasthan

Figure 5: Industry Units in Rajasthan

Source: Rajasthan at a Glance 2016, Department of Information and Public Relations, Government of Rajasthan

34 Figure 6: Industry Clusters in Rajasthan

Source: IMaCS Analysis

Key districts of Jaipur, Jodhpur, Ajmer, wise split of zones for production/ Alwar, Udaipur, Bhilwara, and Bikaner manufacturing. Apart from these, an not only contribute the highest to the auto/auto components cluster has State’s macroeconomic aggregates, also been established in northern but also lead in terms of their industrial contribution to the State’s economy. Rajasthan due to its proximity to the Table 6 gives the details of district National Capital Region.

Table 6: Articles and Major Areas of Production

Products Areas Jaipur (Quilts), Jodhpur (marble items), Udaipur, Jaisalmer Handicrafts (embroidery) Textiles Pali, Jaipur, Bhilwara Gem and Jewellery Jaipur Mines Udaipur Marble Udaipur, Chittorgarh, Sirohi, Kishengarh Food and Agro Products Jodhpur, Bikaner

35 MINERAL RESOURCES Production trends across most mineral products have been encouraging. Rajasthan is among the largest Production of iron from the State has mineral producing states of India, with increased significantly from 0.54 lakh around 79 types of minerals available tonnes in 2010-11 to nearly 29.83 lakh in the State, of which 59 are produced tonnes in 2013-14. Quartz production on a commercial scale. The State also more than doubled from 6.94 lakh has the second highest number of tonnes during 2012-13 to 17.89 Lakh mines in the country, and is one of the tonnes during 2013-14. largest producers of granite, marble, production in the State has also limestone, cement, salt, copper, and consistently increased from 2011-12 . The State also has mines of gold, silver, sand stone, and phosphate. to 2013-14 (Table 7).

Table 7: Mineral Production in Rajasthan (Lakh Tonnes)

S. No Minerals 2010-11 2011-12 2012-13 2013-14 Major Minerals 1 Copper 9.72 10.00 9.80 10.03 2 Iron 0.54 7.72 5.33 29.83 3 Lead and Zinc 74.14 80.42 86.32 72.82 4 Silver (Lakh Kg) 1.40 NA NA NA 5 Ball Clay 18.46 21.16 24.74 31.11 6 Calcite 0.78 0.37 0.62 0.94 7 China Clay 10.20 12.45 17.19 18.81 8 Dolomite 5.07 4.67 8.96 3.68 9 Feldspar 13.00 15.34 20.75 16.68 10 Gypsum 43.22 41.36 27.18 30.88 11 Lignite 19.09 41.72 73.65 76.86 12 Limestone 439.41 453.73 502.90 566.72 13 Mica 0.06 0.04 0.07 0.07 14 Ochres (Incl. Red) 11.52 14.77 19.48 27.46 15 Quartz 3.85 5.97 6.94 17.89 16 Rock Phosphate 14.10 16.59 14.40 11.18 17 Silica Sand 6.33 24.52 8.00 9.96 18 Soapstone 9.57 7.44 8.05 8.10 19 Wollastonite 1.24 1.86 1.89 1.91 Source: Rajasthan at a Glance 2016, Department of Information and Public Relations, Government of Rajasthan

36 STATE LEVEL POLICY SUPPORT f. Rajasthan Mineral Policy 2015 The State level policies that give fillip g. Rajasthan PPP Policy 2008 to exports in Rajasthan are as follows: h. Rajasthan Export Promotion Policy 2017 a. Rajasthan Investment Promotion Scheme 2014 These policies have been profiled b. Rajasthan MSME Policy 2015 based on several parameters like policy statement, vision and mission c. Rajasthan E-Governance IT/ITES statement, salient features of policy, Policy 2015 impact areas and remarks. Overall d. Rajasthan Solar Energy Policy impact areas of these policies on 2014 the State and the observations are e. Rajasthan Tourism Unit Policy highlighted in the detailed analysis 2015 given in Table 8.

Table 8: Policy Analyses Takeaways Policy Impact Areas in Rajasthan Remarks Rajasthan • Rajasthan witnessed Sufficiency: Investment investment worth over Rs 1.5 The eligibility criteria of the Promotion lakh crore from companies scheme comprehensively Scheme - 2014 in solar, mining, textiles and covers the relevant enterprises. petroleum sectors. Results: • The Scheme has impacted big The State has been successful and medium size enterprises. in receiving investment of over • In Aug 2016, Oil India Corp, Rs. 1.5 lakh crore in 2015 and based majorly out of Assam, the sector-wise investments had announced plans to in pharmaceutical, textile and invest in development of oil oil manufacturing have risen, belt of Rajasthan. indicating positive investor • A large number of textile sentiments created through the firms have set up plants scheme. in Rajasthan. The State has received investment proposals of nearly Rs 5,000 crore in the textile sector.

37 Rajasthan MSME • Rajasthan Udyog Ratna Sufficiency: Policy - 2015 Awards will be given to the The policy has comprehensively MSMEs for growth in exports, covered the 5 factors of quality and technological production required by any innovations. organization namely, land, labor, capital, infrastructure and entrepreneurship, along with support functions such as marketing and financing, quality improvement and skill development. Hence, the scope is comprehensive, in terms of non-fiscal interventions. The fiscal interventions are covered under the Rajasthan Investment Promotion Scheme 2014. Results: Reforms in areas like single- window clearances, availability of land, environment clearances, construction permits, and access to information and transparency mechanisms have positively impacted Rajasthan’s business environment. Other: Efforts should be put towards increasing awareness about the policy and its benefits to MSME.

38 Rajasthan • Following benefits are being Sufficiency: e-Governance IT/ provided as part of the The policy comprehensively ITeS Policy – 2015 Rajasthan eGovernance and covers provisions for VAT IT/ITeS policy 2015: benefit, venture capital fund, O Up to 100% VAT benefit subsidy, IT infrastructure, O Customised package of security issues etc. benefits to enterprises Results: O IT/ITeS, Electronic System Implementation has been active Design and Manufacturing and quick, in terms of creating (ESDM) and robotics the necessary infrastructure, declared as priority sectors team of IT professionals, unified O Subsidy on bandwidth for e-governance framework etc. connectivity O Rajasthan Venture Capital Fund/SME Tech Fund RVCF II O Exemption from zoning regulations and land conversion O Interest subsidy O Reimbursement of patent filing costs and quality certifications O Outstanding performance awards O Manpower development subsidy O The objective of the policy is to increase IT exports from the State to Rs. 5000 crore by 2025. • Rajasthan is the first State to enable utilization of all its services and applications by startups and IT organizations by the mechanism of API/web services, through Raj Sewa Dwaar, Rajasthan’s service delivery gateway. • It’s the first State in the country to have implemented an integrated and unified eGovernance Framework.

39 Rajasthan Solar • In July 2015, Rajasthan Sufficiency: Energy Unit Policy Government gave approval The Policy has set the course – 2014 for investment proposals for harnessing solar energy in worth Rs.1,56,000 crore to the State. four companies for solar Results: power production of 26,000 MW in Rajasthan. The Rajasthan government has been successful in establishing • In July 2016, Power Grid the State as India’s leading Corporation approved State for solar energy. This investment of Rs. 2,731 crore can be attributed to the quick in various projects, including approval of infrastructure setting up of a transmission investment proposals by the system for the Bhadla solar State government. park in Rajasthan for Rs. 1,429.38 crore. Other: • According to the Ministry The success of the programme of Renewable Energy, depends on investment Rajasthan was ranked second in innovation and R&D to in the country in terms of grid- bring down the cost of solar connected solar capacity technology. installations. The State had a total installed solar capacity of 1318 MW out of the total 9235 MW in all States as of January 2017. • On the off grid front, 15000 solar powered pumps have already been installed and work has begun on the net metering scheme. • The incentives provided under the policy have increased Rajasthan’s attractiveness as a potential solar export hub for supplying solar energy to other power hungry Indian States.

40 Rajasthan Tourism • By 2018, the number of Sufficiency: Unit Policy – 2015 domestic and international The policy has defined tourism tourist arrivals in the State are units comprehensively which likely to increase to 50 million now includes Hotels, Motels, and 2.5 million, respectively. Heritage Hotel, Budget • Upcoming tourism projects Hotels, Restaurants, Camping planned: Mega Desert site, Meeting, Incentives, Circuit (Jaisalmer-Jodhpur- Conferencing Exhibitions Bikaner-Sambhar-Pali-Mount (MICE) / Convention Centre, Abu) and Mewar Complex Sports Resort, Resort, Health (Haldighati, Gogunda, Deever Resort, Amusement Parks, and Chhapli). Animal Safari Park, Ropeways, • The Government is also Tourist Luxury Coach, planning to start specialized Caravan and Cruise Tourism. circuits for birding, handicrafts The provisions address and spiritual tourism. land, infrastructure, fiscal interventions and institutional requirements adequately. Results: Given the consistent implementation effort, achieving the target tourist footfall by 2018 seems likely. Rajasthan Mineral • The Resurgent Rajasthan Sufficiency: Policy – 2015 Summit in November The policy not only details 2015 witnessed the State the strategic and operational government signing 13 MoUs challenges faced in the worth Rs. 50,527 crore for sector, and the framework and Mines and Solar Energy. imperatives for addressing Of these, 12 MoUs - with them, but also mentions the cumulative investment of Rs. provisions for creating an 40,527 crore were related to implementation team and the mining, steel and cement a mechanism to track the sectors. These include success of the policy. significant projects in the segments of iron ore, lignite, copper, rock phosphate, limestone and dolomite and base metals, as well as steel and cement plants.

41 • The entire process of auction Results: of 3 limestone blocks, held The number of investment in the last week of January proposals received at the 2016, from registration to conclusion of the summit have finalization of bids, was been encouraging and are conducted online. indicative of the improvement • Rajasthan is the first State in investor sentiments for the to hold an open auction for mining and minerals sector. mineral resources at national level. • For technical advancement, acquaintance of rules/ regulation to lessees and promotion of export of minerals, regular mineral fairs, exhibitions and seminars will be organized in association with mining associations. • In case of export oriented products, particularly granite and marble, testing facilities will be made available to prospective buyers. Rajasthan PPP • In 2012, Rajasthan’s Public Sufficiency: Policy – 2008 Private Partnership (PPP) The policy covers provisions th projects were the 4 largest for land acquisition, statutory in the country. clearances, dispute resolution • Some of the projects in urban mechanism, financial and areas include, alternate route administrative support from to Ghat Ki Ghuni (Rs 150 the State government, as well cr), ring road project (Rs 890 as the institutional framework cr), multi-level parking at required to encourage Ashok Marg (Rs 90 cr) and investment and ensure smooth affordable housing scheme completion of PPP projects (Rs 348 cr). in the State. The policy may be improved by further strengthening the monitoring mechanism.

42 • The major projects in PPP Results: mode have been initiated in The State attracted PPP power sector. Lignite-based ventures. power plant at Bhadresh in Barmer alone stands at Rs 5,000 cr. The other major project envisaged by the government under PPP is phase-II of Jaipur Metro. • In Aug 2014, Rajasthan government was heavily dependent on PPP mode for strengthening the road infrastructure in the State. The State has embarked on construction of 20,000 km of road under PPP mode up till 2019. • In 2015, Rajasthan Government decided to run Primary Health Centres (PHCs) in PPP mode. Out of 2,082 PHCs operating in Rajasthan, 90 were handed over to be run in PPP mode. • In 2016, Rajasthan’s Dak Bungalows have been planned to be developed into three star hotels through PPP model. Rajasthan Export • Policy will be effected from Sufficiency: Promotion Policy 2017 The policy lays down concrete – 2017 targets to be achieved in a given time period. The policy also touches upon the approach/strategy to achieve the targets through market and product prioritisation.

Source: Government of Rajasthan

43 2. EXPORTS SCENARIO

India’s export basket was worth Rs. Central Government are actively 17 lakh crore in 2015-2016 and the promoting improvement in output and States of Gujarat, Maharashtra, Tamil exports from the State. Nadu and Karnataka contributed Total merchandise exports from India to bulk of the exports. The top two have grown from Rs. 8.40 lakh crore in states of Gujarat and Maharashtra 2008-09 to Rs. 17 lakh crore in 2015- contributed close to 50% of the total 16 (Figure 7), witnessing a CAGR exports3. Rajasthan, the largest of 11%. During the same period, state in geographical area terms, exports from the State of Rajasthan contributed about 2% to India’s export registered a CAGR of 13% to amount basket. The State is abundantly to Rs. 36,047 crore in 2015-16. The rich in natural resources, has ready availability of labour pool and is also high growth rate experienced after historically endowed with wealth. the economic slowdown in 2008- Clearly, the export potential of this 09 has significantly reduced as the state is yet to be fully realized. export scenario is getting competitive and exporters are facing issues in The landlocked nature of the State traditional markets of Europe and the has significantly restricted its access USA. to a wider market as compared to the better performing states like Gujarat, A y-o-y comparison of performance Maharashtra and Tamil Nadu, all of indicates that the growth rate of which have a long coastline. Barring exports from the State of Rajasthan this obvious disadvantage, Rajasthan has fared better than the national shares its borders with 6 states and average in most years save for 2013- acts as a direct connect between the 14. This growth rate, however, seems manufacturing hubs in northern part to have slowed down during the last of the country and the major ports three years reflecting the trend in in western part of the country. With overall exports from India. Exports its proximity to both these regions, from the State registered negative the State is a promising investment growth rates during two of the last destination, and both the State and three years (Figure 7).

3ASSOCHAM study on 'Export Performance of States’, 2016

44 Figure 7 : Comparison of Export Trend for Rajasthan and India

2500000 6 0% 50%

5 0% 19,05,011 18,96,348 2000000 38% 34% 16,34,318 17,16,378 4 0%

14,65,959 3 0%

1500000 29% 19%

17% 2 0% 11,36,964 4% 11% 4% 1000000

1 0% 8,40,755 8,45,534 1% -5% -7% 0% Trade value value Crore Tradein Rs. 500000 0% -9%

-1 0% 39,106 23,753 32,749 37,286 38,767 36,047 0 15,236 15,838 -2 0%

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Total exports- RJ Total exports - IND y-o-y growth RJ y-o-y growth IND

Source: DGCIS, DGFT, IMaCS analysis On the export front, Rajasthan is growth has tapered off significantly. traditionally strong in handicrafts, Long term trends in exports over gems and jewellery, dimensional a ten year horizon (FY05- FY16) stones, agro and food products, textile indicate a considerable improvement, products etc. Exports from Rajasthan with exports growing from Rs. 8,002 have more than doubled to Rs. 36,047 crore in 2015-16 from Rs.15,236 crore in FY05 to Rs. 36,047 crore in crore during 2008-09. However, after FY16, recording a CAGR of 14.7% the peak achieved in 2012-2013, the (Figure 8). However, there are clear

Figure 8 : Total Merchandise Exports^ from Rajasthan

^Including software exports Source: DGCIS, IMaCS analysis

45 indications of a slowdown in the second greater support to the MSMEs, half of the period under consideration. and promotion of entrepreneurship The CAGR of 8.7% recorded during through the Rajasthan eGovernance the period FY11 to FY16 is almost half and IT/ITeS policy 2015, the IT and of the 14.6% CAGR witnessed in the ITeS sector is expected to continue earlier period of FY05 to FY10. the upward growth trend. In terms of services exports, tourism SECTORAL CONTRIBUTION TO and hospitality is a key segment in EXPORTS Rajasthan. The segment has immense The top five export items from potential for earning foreign exchange Rajasthan accounting for nearly revenue. In fact, Rajasthan has been two-thirds of exports from the State steadily gaining prominence in the are textiles (including readymade global markets as an important tourist garments), gems and jewellery, destination of India. In 2004, 9.72 lakh engineering goods, chemical and foreign tourists arrived in the State and allied products (including tyres), and this number increased to 15.26 lakh in handicrafts. Agro and food products, 20144. Rajasthan receives significant dimensional stones comprising number of European tourists, with the marble, granites and articles of stone top three countries being France, the mica, metals –ferrous and non- UK and Germany. In 2015, about 233 ferrous metals, and electronics and lakh foreign tourists arrived in India computer software are also important and Rajasthan was host to about 6%5 sectors having a share of more than 5% each in Rajasthan’s exports of this number. (Figure 9). Apart from tourism and hospitality, the Over the past several years, the share second major contributor to service of major commodities in Rajasthan’s exports from the State is IT and ITeS exports has not changed much, sector. Exports from the sector have with agro and food products being increased from Rs. 1,172 crore in FY13 the only exception. The agro and to 2,305 crore in FY16, contributing food products sector accounted for 0.3% to national exports. With 37% of Rajasthan’s exports during adoption of emerging technologies in FY13. However, the crash in crude recent years, the sector has become oil prices and subsequent drag on one of the fastest growing sectors in hydraulic-fracturing has impacted the the State. export of Guar gum from India, which On account of increasing focus on contributed to bulk of agro and food research and development in ESDM, products exports from Rajasthan.

4Source: Rajasthan at a Glance 2016 – RCCI 5Source: India Tourism Statistics at a Glance 2015

46 Figure 9 : Sectoral Contribution to State Exports (2015-16)

Source: DGCIS, IMaCS analysis. Electronics and software includes IT and ITeS

This impact is clearly visible in the products crashing to 9% in 2015-16 share of exports of agro and food (Figure 10).

Figure 10 : Share of Major Sectors in Rajasthan’s Exports (FY09, FY13 and FY16)

Source: DGCIS, IMaCS analysis

47 KEY EXPORT SECTORS from Rajasthan registered a CAGR of 11.7% during the period FY05 Textiles and Garments (including to FY16. This was lower than the Handlooms) CAGR of 15.0% recorded for India’s Textiles is one of the leading sectors of exports of textiles during the same exports from the State of Rajasthan. period. Textile exports from Rajasthan In 2015-16, textiles export from recorded a higher CAGR of 14% Rajasthan amounted to Rs. 4,812 during the period FY11 to FY16, as crore, accounting for nearly 3.7% of compared to a CAGR of 6.3% during the total exports of these products the previous period FY05 to FY09 from India. Exports of these products (Figure 11).

Figure 11: Trend in Export of Textiles from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

Box 1 : HS Code Analysis for Textiles Industry Manmade staple fibres (HS Code -55) contributed close to Rs. 1870 crore to Rajasthan’s exports during FY16. This is the single largest export item under the textiles segment. The State is among the largest producers/ exporters of woven fabrics (HS code -5515) in India. Among woven fabrics, Rajasthan is the largest exporter of woven polyester fabrics, mainly/solely mixed with viscose rayon (HS code -551511) from India and accounted for close to 40% of India’s export of this item in FY16. The major destinations for export of manmade staple fibres are the textile manufacturing hubs of Egypt, UAE, Turkey, Morocco, and Iran. The export of these items to the western countries are facilitated through Nhava Sheva and Mundra ports, while the exports to Bangladesh and other eastern textile destinations take place through Petrapole land port.

48 Cotton Yarn>85% (HS Code -5205) is the second most significant textile export from Rajasthan with a value of Rs. 560 crore in FY16. Significant value addition takes place in the State and yarns of various linear densities are exported to markets such as Bangladesh, China etc. Eastern European markets such as Poland, Germany are also important export destination for this product. Other major textile exports from the State include impregnated, coated or laminated fabrics (HS code -59), other made textile articles such as bed / toilet / kitchen linen, furnishing articles etc (HS code -63). These items accounted for close to Rs. 670 crore of exports in FY16. Source: DGCIS, DGFT, IMaCS analysis.

In 2015-16, Rajasthan exported Rs. from the State. Exports of garments 1,579 crore worth of readymade from the State recorded a CAGR of garments, accounting for 1.4% of 13% during the period FY05 to FY16 the total readymade garment exports — same as the CAGR for exports of from India. Readymade garments these products from India during this have a share of 4% in the total exports period (Figure 12).

Figure 12 : Trend in Export of Garments from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

49 Box 2 : HS Code Analysis for Garments Industry Readymade garments constitute close to 25% of total textile exports from Rajasthan. Of these, non-knitted garments (HS code -62) are the major contributors. These finished garments are majorly exported to the developed nations such as Japan, the USA, the UK and Spain. These items are mainly exported through Nhava Sheva sea port, cleared through ICDs - Faridabad, CFC Startrack Dadri, and airlifted from Delhi and Jaipur. Bulk of the export happens in only a few items of readymade garments such as – women’s, girl’s dresses of artificial fibre (HS code – 620443), women’s, girl’s dresses of cotton (HS code – 620442), women’s, girl’s shirts / blouses of artificial fibre (HS code – 620640), women’s, girl’s shirts / blouses of cotton (HS code – 620630) and women’s, girl’s track suits / ski suits / swim wear (HS code – 621142).

Source: DGCIS, DGFT, IMaCS analysis.

Gems and Jewellery crore in FY16, and its contribution Gems and Jewellery (G&J) is among to the national exports stood at the top contributors to Rajasthan’s 2.1% during the year (Figure 13). The exports with a share of around 15% share of Rajasthan in G&J exports in the State’s exports. G&J exports from on the rise for the past from the State amounted to Rs. 5,345 few years.

Figure 13: Trend in Export of Gems and Jewellery from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

50 The export of G&J from Rajasthan Rajasthan was 15% – almost thrice has registered a CAGR of 12% during the CAGR for exports at the national the period FY05 to FY16. Exports level. The y-o-y growth for exports at the national level witnessed a of G&J from Rajasthan has been higher CAGR of 14% during the faster than the national average, same period. However, CAGR during albeit a lower base signals higher the last 5 years (FY11-FY16) for potential.

Box 3 : HS Code Analysis for Gems and Jewellery Industry The major G&J export items from Rajasthan are articles of jewellery and parts containing precious metal (HS code- 7113) and mounted precious / semi-precious stones not diamond – not worked/partially worked (HS code -7103). These two segments, valued at Rs. 4,900 crore, contributed close to 90% of total G&J export from Rajasthan in FY16. The major ports for handling these items are Jaipur AC and SEZ Sitapura. The top destination markets for these items from Rajasthan are Hong Kong, the USA, the UK, Thailand and Singapore, which are also among world’s largest markets for G&J trade. Close to half of the exports in G&J is registered under precious, semi- precious stones unworked/ partially worked (HS code – 710310) and rubies, sapphires, emerald worked but not set (HS Code - 710391) indicating scope for value addition. There is significant exports under the category of jewellery and parts of precious metals (HS Code - 7113) including silver and other precious metals.

Source: DGCIS, DGFT, IMaCS analysis

Dimensional Stones Rajasthan’s exports of dimensional Dimensional stones are one of the key stones recorded a CAGR of 18% export items from the State, and had a during the period FY05-FY16. share of more than 8% in Rajasthan’s The CAGR of 25% recorded total exports during FY16. The total during the past 5 years export of dimensional stones from (FY11-FY16) is significantly higher Rajasthan stood at Rs. 2904 crore in than the CAGR of 18% registered 2016, accounting for 11% of India’s total exports of these products during the previous four years (Figure 14). (FY05- FY09).

51 Figure 14 : Trend in Export of Dimensional Stones from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

Box 4 : HS Code Analysis for Dimensional Stones Industry In the category of dimensional stones, sandstone (HS code- 251620) is the single largest export item from the State of Rajasthan. In FY16, the State exported Rs. 900 crore worth of . The export market is currently narrow and more than 90% of the exports are routed to the UK, indicating a clear case for geographic diversification. The ICDs of Kota, Kanakpura and Mundra sea port handle bulk of exports of sandstones from Rajasthan. Rajasthan also exports other monumental or building stones, porphyry and basalt (HS code- 251690) to the UK. In FY16, nearly Rs. 310 crore worth of these items were exported from the State. Natural Steatite, crushed/powdered (HS code-252620) is exported to South East Asian markets such as Indonesia, Thailand, as also to the Middle East and African markets (UAE, Nigeria). Another significant export item is and travertine (HS code- 251512) with exports of nearly Rs. 100 crore in FY16. The major markets for this product are China, Hong Kong, Italy, Egypt, etc. More than 50% of India’s marble export is from Rajasthan. Quartz, lump/powder (HS code -251612) and granite, merely cut into rectangular blocks/slabs (HS code -251612) are also significant items of exports from Rajasthan under the segment of dimensional stones.

52 After significant value addition, marbles and granites are exported from Rajasthan in the form of tiles/cubes, etc. These worked monumental stones - marbles, travertine blocks / tiles / polished (HS code -680221) and granite blocks / tiles / polished (HS code -680223) contributed Rs. 770 crore to the export of dimensional stones from Rajasthan in FY16. The export destinations for these products were Turkey, UAE, the USA, Egypt, etc. ICD Sabarmati, ICD Kanakpura and Sea ports of Mundra and Chennai cater to the export of these items.

Source: DGCIS, DGFT, IMaCS analysis.

Handicrafts The export of handicrafts from Rajasthan registered a CAGR of 13% Handicraft exports contributed Rs. during FY09-FY16. This was lower 3,343 crore to the export basket of than the CAGR of 15% for handicraft Rajasthan in FY16, accounting for 9% exports from India as a whole, of the State’s exports. Total exports of indicating the better performance of handicrafts from the country was Rs. other competing states. 29,347 crore in 2016, and Rajasthan was one of leading contributors with a Carpets share of 11.4% (Figure 15). Share of Exports of carpet from Rajasthan Rajasthan in India’s handicraft exports has witnessed significant growth in has been traditionally high. recent years and recorded a CAGR

Figure 15 : Trend in Export of Handicrafts from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

53 of 19% during FY11-FY16. During the a share of nearly 9% in the State’s same period, total export of carpets total exports. The major agro products from India posted a CAGR of 11%. of the State include oilseed, rapeseed, In FY16, Rajasthan’s carpet exports mustard, soya bean, coarse creeds amounted to Rs. 569 crore, which and spices. In 2013, agro and food was 2% of the entire exports from the products were the largest export item State. Rajasthan is a prominent State for Rajasthan contributing in excess for export of carpets and contributed of 37% to the total exports from more than 5.4% to the country’s export the State. of carpets in FY16 (Figure 16). Growth in the sector was supported Jaipur and its adjacent districts are the by increased exports of guar gum — major areas for carpet manufacturing. an extract of guar seeds used in the Bikaner, Jaipur and Ajmer are the petrochemical industry for fracturing major centres for hand knotted purposes. However, the fall in crude carpets. The carpets are available oil prices have adversely impacted both in cotton and silk fabric. Durries this sector, with the exports falling by is a unique type of carpet made in nearly five times from Rs. 14517 Cr in Rajasthan, and is currently one of the FY13 to Rs. 3094 Cr in FY16. Owing best-known products of the State. to this, the share of Rajasthan in total Agro and Food Products exports of agro and food products Agro and food products are among the from India has declined from 7.2% in top export items from Rajasthan, with FY13 to 1.5% in FY16 (Figure 17).

Figure 16 : Trend in Export of Carpets from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

54 Figure 17 : Trend in Export of Agro and Food Products from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

Box 5 : HS Code Analysis for Agro and Food Products Industry Since 2013, there has been a marked decline in exports from Rajasthan of all items under agro and food products. Apart from guar gum extract – mucilage and thickeners (HS code -130232) which constitute close to 85% of exports in this segment, other items have also registered a fall in export value. Oil cakes (HS code- 23) are the second largest export item under this category for the State. The oil cake of rape seed - residue of rape seed / colza seed (HS code – 23064990) had an export value of Rs. 230 crore in FY16 — a drastic reduction from Rs. 640 crore in FY15. The major destination markets for extract of rape seed are South Korea, and South East Asian countries (Viet Nam, Thailand, and Indonesia). These are exported from Kandla sea port in Gujarat and ICD Kanakpura. Cereals (HS code -10) is another segment where there was a significant drop in exports from Rajasthan. Barley (HS code -1003) and wheat and meslin (Hs code -1001) exports which were worth Rs. 520 crore in 2015 came down to Rs. 30 crore in 2016. Other agro and food products that are exported significantly from Rajasthan include oil seeds (HS code-1207), especially sesame seed oil seed (HS code-120720) and ground-nuts (shelled) and products (HS code -1202).

Source: DGCIS, DGFT, IMaCS analysis.

55 Chemical and Allied Products exports of these products registered a (including Tyres) higher CAGR of 16%, as compared to Chemical and allied products including the CAGR of 15% for exports from the tyres are among the leading items of entire country. The CAGR for exports exports from Rajasthan, contributing of these products from the State has in excess of 11% to the total exports been 25% during the past five years from the State in FY16. The total export (FY11-FY16). This is more than double of these products from Rajasthan was the CAGR of 11% registered during Rs. 4,145 crore in FY16. the previous four years (FY05-FY09). While the share of Rajasthan in the This is in sharp contrast to the trend total exports from India is mediocre, witnessed at an all India level wherein it has been gradually increasing from the CAGR of 13% during the period 1.5% in FY11 to 2.6% in FY16 (Figure FY11-FY16 is lower than the CAGR of 18). During FY05-FY16, Rajasthan’s 21% recorded during FY05-09.

Figure 18 : Trend in Export of Chemicals and Allied Products (incl Tyres) from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

56 Box 6 : HS Code Analysis for Chemicals and Allied Products (incl Tyres) Industry Under this category, tyres for automobiles (HS Code -4011) constituted close to Rs. 1370 core of exports in FY16. Of these, export of new pneumatic tyres of rubber, with herring-bone or similar tread, for agricultural or forestry vehicles and machines (HS code – 401161) is the single largest export item with an export value of around Rs. 980 crore in FY16. Heavy vehicle tyres such as new pneumatic tyres of rubber, used on buses or lorries (HS code – 401120) also have significant exports. Apart from tyres for automobiles, tanning, dyeing extract, pigment, etc (HS code -32) are also exported from Rajasthan. The export in this segment is concentrated among a few products such as synthetic organic colouring matter (HS code – 3204), and inorganic colouring matter (HS code -3206).

Source: DGCIS, DGFT, IMaCS analysis.

Engineering Products The share of Rajasthan in the total engineering goods exports from Engineering products accounted for India is meagre, but has witnessed more than 13% of the exports from a gradual upward movement – from Rajasthan in FY16. Value of exports of 1.1% in FY11 to 1.6% in FY16. During engineering products from Rajasthan the period FY05-FY16, exports stood at Rs. 4,754 crore during the of these products from Rajasthan year (Figure 19).

Figure 19 : Trend in Export of Engineering Products from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

57 registered a lower CAGR of 19%, 20%, and that in latter being 49%. This as compared to the CAGR of 20% trend is in line with the trend for total witnessed by exports at an all-India engineering goods exports from India level. Export growth in the past 5 years wherein CAGR during the FY05-FY09 (FY11-FY16) has slowed down significantly as compared to the period was much higher at 36%, than previous 4 years (FY05-FY09), with the CAGR of 12% during the period the CAGR in the former period being FY11-FY16.

Box 7 : HS Code Analysis for Engineering Products Industry The export of engineering products from Rajasthan is well diversified. At a 2 digit HS Code level, there are 4 items that constitute more than half of engineering products exports from Rajasthan. These are vehicles (HS code -87), engines, transmission parts and other auto and machine parts (HS code -84), electrical and electronics equipment (HS code -85) and optical, photo, technical, medical, etc apparatus (HS code -90). These items contributed close to Rs. 3,270 crore to exports of engineering products from Rajasthan in FY16, registering a y-o-y growth of 18%. Automobile parts including spare parts (HS code -870899) is the single largest export item classified under engineering products. There is also significant exports of parts for diesel engines (HS code – 840999), transmissions for motor vehicles (HS code -870840) and transmission shafts, including cam shafts and crank shafts (HS code - 848310). Other ancillary items such as ball bearing and parts, parts of air conditioners constitute the remaining auto component/ parts exports from the State. Machinery, mechanical appliances and parts accounted for close to Rs. 1286 crore of engineering products exports during FY16. Tapered roller bearings (HS code – 848220) was the single largest exported item in this category. Other ball or roller bearings (HS code – 848299), parts of air conditioning machine (HS code – 841590) and crushing / grinding machines and parts (HS code – 847420 and 847490) were the other major exported items. Rajasthan exported electrical and electronics equipment (HS code -85) worth Rs. 1114 crore in FY16. Major items of export under this category were parts of telephone handsets and equipment (HS code – 851770), other electric conductors over 1000 volts (HS code -854460), other electric conductors less than1000 volts (HS code 854449), liquid dielectric transformers (HS code -850421), parts of electric switches, connectors, protectors etc (HS code -853890). Source: DGCIS, DGFT, IMaCS analysis.

58 Mineral Products Metals (Ferrous and Non-Ferrous)

The State has 79 different types Rajasthan exports iron and steel of major and minor minerals, 57 of products, copper products and which are mined currently. Rajasthan unwrought zinc and lead. Export of accounts for 11.5% of India’s total metals (ferrous and non-ferrous) had mineral production. Copper, zinc, lead and silver are some of the a share of 5% in the export basket of major metallic minerals produced the State of Rajasthan in FY16. Metal in Rajasthan whereas petroleum, exports from the State were valued limestone, mica, gypsum and silica at Rs. 1,777 crore in FY16, which is are some of the major non-metallic 1.5% of the total exports from India minerals produced in Rajasthan. (Figure 21). Major mineral products exported While export of metals from India from Rajasthan include copper registered a CAGR of 6% during FY11 ores and concentrates, zinc ores and concentrates, petroleum oils to FY16, the exports of metals from and limestone. Exports of mineral the State of Rajasthan have witnessed products from Rajasthan have fallen a negative CAGR of (-) 17%. Ferrous significantly from Rs. 2916 Cr in FY11 and Non- Ferrous metals have a 40%- to Rs. 31 Cr in FY16 (Figure 20). 60% split in total metal exports from While exports of mineral products Rajasthan. from India have registered a robust CAGR of 11% during the period FY06 IT, ITeS and Electronics to FY16, the exports from Rajasthan IT and Electronics sector of Rajasthan have recorded negative CAGR contributes about 5% to the State’s of (-) 34%.

Figure 20 : Trend in Export of Mineral Products from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

59 Figure 21: Trend in Export of Metals (Ferrous and Non- Ferrous) from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

exports. At the national level, IT and 2012), Rajasthan’s wool production is ITeS segment has shown a growth twice that of the nearest ranked state, rate of about 12% in FY15. Rajasthan Karnataka. The States of Punjab and contributes about 0.3% to the national Haryana have the most number of IT and ITeS exports, which in value wool processing units in the country. terms is about Rs. 2305 crore. Exports of wool and woollens from Wool and Woollens Rajasthan have fared better in the past 5 year period (CAGR: 36%) than Rajasthan exported Rs. 78 crore the period from FY05 to FY09 during worth of wool and woollen products which exports registered a negative in FY16, accounting for 6.7% of total CAGR of (-) 4%. exports of these products from India and less than 1% of Rajasthan’s total Drugs and Pharmaceutical exports (Figure 22). Woollen carpets Drugs and Pharmaceuticals sector are an important export commodity for had a share of 1% in the export basket the State. of Rajasthan in FY16. These exports In spite of being the largest wool were valued at Rs. 398 crore during producer in the country, the share of the year (Figure 23). The CAGR for exports from Rajasthan remains low drugs and pharmaceutical exports at the national level. With a share of from the State during the period FY05 30% in total wool production in the to FY16 was same as the CAGR of country (as per last available data in 22% for national exports.

60 Figure 22 : Trend in Export of Wool and Woollens from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

Figure 23 : Trend in Export of Drugs and Pharmaceuticals from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

61 Box 8 : HS Code Analysis for Drugs and Pharmaceuticals Industry Medicaments, in dosage (HS code - 3004) constituted more than 90% of drugs and pharmaceutical exports from Rajasthan in FY16. Ukraine, Belgium, Uzbekistan, South East Asian countries (Philippines, Myanmar, Viet Nam), etc are the major destinations for export of this item from Rajasthan. The markets where Indian firms currently export medicaments, in dosage (HS code -3004) are the USA, the UK, Russia and African markets (South Africa, Nigeria, Kenya). There is potential for exporters from Rajasthan to export to these nations, where the market is larger and many of the Indian firms are significant players in generic drugs business.

Source: DGCIS, DGFT, IMaCS analysis.

Leather and Leather Products The total exports from India in this sector registered a CAGR of 10% Leather and leather products during FY05-FY16, and the exports contribute about 1% to the State from Rajasthan followed suit with a exports. The popular leather products 25% CAGR, albeit on a lower base. of the State are juttis and mojris. Exports of these products from the Rajasthan’s share in national exports State were valued at Rs. 230 crore in has been increasing over the past FY16 (Figure 24). few years.

Figure 24 : Trend in Export of Leather and Leather Products from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

62 Plastics and Linoleums 29% during FY05 to FY16, helping the The total export of plastics and State to increase its share in India’s linoleums from Rajasthan was Rs. total exports from 0.4% to 1.9% during 636 crore in FY16 and it accounted this period. During the same period, for less than 2% of the export basket the total export from India of plastic of the State. The share of Rajasthan and linoleums registered a CAGR in the total exports of plastics and of 12%, although on a high base. linoleums from India continues to be The CAGR for export from low and was 1.9% in FY16 (Figure 25). Rajasthan in the past 5 years at 36% However, Rajasthan's exports of these (FY11-FY16) has surpassed the products are growing at a significant CAGR of 27% in the previous 4 years pace and have registered a CAGR of (FY05-FY09).

Figure 25 : Trend in Export of Plastics and Linoleums from India and Rajasthan

Source: DGCIS, DGFT, IMaCS analysis

63 3. EXPORTS COMPETITIVENESS FRAMEWORK FOR RAJASTHAN

Export competitiveness is one of the oft • As of March 2016, Rajasthan used terms in the world of international had a railway network spanning trade and exports. There are a number 5,870.38 km, of which 4,868.06 of international frameworks that exist, km was covered under broad which objectively and subjectively gauge, 915.56 km under meter try to ascertain the competitiveness gauge and 86.76 km under of goods and services from nation/ narrow gauge. states. Cost competitiveness is driven by several factors some of which • Rajasthan has only one are inherent to the State like factor international airport in Jaipur endowments while others are driven which connects to Dubai, by policy and institutional frameworks. Bangkok, Singapore and Sharjah. SEZ Sitapura and Mahindra KEY ENABLERS OF World City Jaipur are major SEZs COMPETITIVENESS present in the State. Some of the key enablers of strong • At present, only two Inland export performance in the State are Container Depots are there common across segments. These in Rajasthan, one located in include factors like infrastructure, Kanakpura, Jaipur and the other cost of resources, and ease of doing in Jodhpur. business. There is also plan to develop Infrastructure has a strong bearing Dedicated Freight Corridor (DFC) on the competitiveness of exports. connecting Nhava Sheva Sea port The key statistics pertaining to with Dadri near Delhi. The plan is also the infrastructure in the State are to develop a Delhi Mumbai Industrial mentioned below: Corridor on a 150 Km band on both • The total road length in Rajasthan sides of DFC. Around 39% of the is around 208,341.81 km and DFC will pass through Rajasthan and as on December 2015, the road hence will enhance the connectivity density of the State was 60.88 km of various industrial hubs, ICDs per 100 sq. km. and ports.

64 Table 9 : State Comparison across Critical Enablers of Export Performance

Driver Rajasthan Leading Industrial States India Rs. 7.55 – Cost of Tamil Nadu - RS. 4.00 to 6.35; Rs. 8.80 power (per Gujarat - Rs. 4.00 - 6.60; Rs. 4.70 depending upon unit) Maharashtra - Rs. 8.56 - 11.99 consumption Cost of Tamil Nadu - Rs. 15 to Rs. 60; Rs. 35 - Rs. 50 Rs. 7.20 water (KL) Maharashtra - Rs. 12.30 to - Rs. 72.6 Rs. 350 - Cost of Tamil Nadu- Rs. 373; Rs. 1465 Rs. 259 – Unskilled Gujarat - Rs. 313; depending Rs.300 labour Maharashtra Rs. 371 upon skill level and industry Ease of Tamil Nadu - 18, Gujarat - 3, doing Rank - 8 Rank - 130 Maharashtra - 10 business Source: IMaCS Analysis

State-level comparison of critical - The framework is viewed as a enablers for successful export representation of export segment performance highlights that cost performance at a point in time. of power is significantly higher in Thus it is something that is Rajasthan, as compared to other dynamic and transitionary in leading industrial States (Table 9). nature. EXPORT COMPETITIVENESS - The underlying qualitative factors FRAMEWORK that contribute are also examined to determine the possibility of The overall approach to the transition and the final position in development of the competitiveness the framework. framework for Rajasthan is built on The export competitiveness framework the following principles: (which is essentially a culmination - The competitiveness framework of the quantitative analysis, key is not viewed in isolation for challenges faced by exporters, and the State but rather takes into the individual segment-wise analysis) account the performance of other will categorize and slot various States, India and the world. sectors across four quadrants, namely

65 competitive advantage, potential, 4. Inconspicuous: Segments in vulnerable and inconspicuous, this quadrant represent non- bearing characteristics as significant / emerging export highlighted below. opportunities for Rajasthan but inconspicuous from the 1. Competitive Advantage: perspective of overall contribution Segments in this quadrant represent significant export This slotting will set the context for opportunities for Rajasthan determining the export targets as well as looking at what segments 2. Potential: Segments in this can essentially transition to the quadrant represent potential competitive advantage quadrant, export opportunities for Rajasthan thereby providing opportunities to 3. Vulnerable: Segments in this strengthen the export performance quadrant represent potential of the State. Strategies can then export opportunities for Rajasthan be outlined to determine how the but need to be strengthened to segments in competitive advantage move to competitive position may be consolidated.

Figure 26 : Export Competitiveness Framework

66 Quantitative Analyses segments, global exports data for five The export contributions of various years has been considered, and for segments have been analyzed across indexing purpose only the latest data three parameters: for 2015 is taken under consideration. - India’s contribution to world exports Mapping Export Performance: India - Rajasthan’s contribution to India’s to World exports Mapping of India’s share in global - Indexed position of Rajasthan vis- exports over a five year period a-vis other States in India indicates that there exists competitive Quantitative values have been advantage in the sectors of carpets, defined to ascertain the extent of contribution by each segment and gems and jewellery, textiles and the relative position of Rajasthan garments, and IT and ITeS. The compared to other States. Based on sectors of leather and leather the aforementioned three parameters, products, handicrafts, dimensional the quadrants have been defined as stones, drugs and pharmaceuticals, depicted in Table 10. animal, agro and food products, In order to maintain consistency and ferrous metals emerge as potential in comparison of data across the sectors for exports (Table 11).

Table 10 : Definitions of Quadrants

Competiveness India: World Rajasthan: India Rajasthan Index Quadrants Contribution % Contribution % Competitive > 4% > 5% > 0.25 Advantage (CA) Potential (P) > 2% to < 4% > 2% but < 5% > 0.10 but < 0.25 > 0.02 but less than Vulnerable (V) > 1% to < 2% > 1% but < 2% < 0.10 Inconspicuous (I) < 1% <1% less than 0.02 Source: IMaCS analysis

67 Table 11: Export Categories’ Contribution – India to World

India: World Contribution – Segments Classification 5 year average (2010-2015) Merchandise Carpets 10.40% CA Gems and Jewellery 6.28% CA Textiles and Readymade Garments 4.35% CA Leather and Leather products 2.99% P Handicrafts 2.61% P Dimensional Stones, Marble and Granite 2.58% P Drugs and Pharmaceuticals 2.22% P Animal, Agro and Food Products 2.53% P Metal (Ferrous) 2.19% P Minerals 1.95% V Metal (Non Ferrous) 1.50% V Chemical and Allied Products 1.68% V (including Tyres) Wool and Products 1.29% V Plastics and Linoleum 0.94% V Engineering Goods 0.69% I Others 0.74% I Services Tourism 1.55% V IT and ITeS 17.95% CA Source: UN Comtrade, IMaCS analysis, UNWTO, UNCTAD for IT and ITeS 4 year average taken from 2010-2014, Tourism 3 year average considered

68 Mapping Export Performance: chemical and allied products (including Rajasthan to India tyres), gems and jewellery, and agro and food products. Some segments Dimensional stones, handicrafts, like readymade garments which are wool and products, and tourism and currently in the vulnerable quadrant hospitality are the sectors where represent potential for Rajasthan, and Rajasthan has competitive advantage these should be analyzed from various (Table 12). The potential sectors qualitative standpoints to determine from exports perspective are textiles, the final competitiveness position.

Table 12 : Export Categories’ Contribution – Rajasthan to India

Rajasthan: India – 5 year Segments Classification average (2010-2015) Merchandise Dimensional Stones, Marble and Granite 11.19% CA Handicrafts 12.64% CA Wool and Products 3.79% P Carpets 5.12% CA Textiles 3.33% P Chemical and Allied Products 2.39% P (including Tyres) Gems and Jewellery 1.56% V Plastics and Linoleum 1.28% V Engineering Goods 1.22% V Animal, Agro and Food Products 2.44% P Readymade Garments 1.79% V Metal (Ferrous and Non-Ferrous) 2.36% P Leather and Leather products 0.66% I Drugs and Pharmaceuticals 0.59% I Others 0.06% I Minerals 0.35% I Services IT and ITeS 0.38% I Tourism and Hospitality 7.19% CA

Source: Government of Rajasthan, UN Comtrade, IMaCS analysis

69 Mapping Export Performance: products, textiles and garments, wool Rajasthan’s Indexed Position and products, metal and carpets. The indexed position of Rajasthan Some traditionally strong segments i.e. the standing of the State in like gems and jewellery, which are comparison to the highest contributing currently in the vulnerable quadrant, State in a particular export category, represent potential for Rajasthan, has been outlined in Table 13. Based and these should be analysed from on this analysis, only dimensional various qualitative standpoints to stones appear as an area of determine the final competitiveness competitive advantage for Rajasthan. The potential areas are agro and food position. Table 13 : Rajasthan’s Indexed Position Rajasthan Segments Indexed Classification Position Merchandise Dimensional Stones, Marble and Granite 0.67 CA Animal, Agro and Food Products 0.13 P Textiles and Readymade Garments 0.12 P Wool and Products 0.19 P Metal (Non Ferrous) 0.13 P Carpets 0.13 P Chemical and Allied Products (including 0.08 V Tyres) Engineering 0.06 V Plastics and Linoleum 0.05 V Metal (Ferrous) 0.04 V Gems and Jewellery 0.03 V Leather and Leather products 0.03 V Drugs and Pharmaceuticals 0.02 I Minerals 0.0002 I Others 0.26 CA Services IT and ITeS 0.004 I Tourism and Hospitality 0.85 CA Source: Government of Rajasthan, DGCIS, IMaCS analysis. IT and ITeS numbers considered in total for Rajasthan as opposed to considering the grouping as IT, ITeS and electronics. Electronics is profiled in engineering in succeeding sections.

70 The three parameters of analyses are remaining 10% weightage is for standalone and the same have to be Rajasthan’s relative position as integrated across a common base to compared to other Indian States. The arrive at the final classification of these final scores in each of the sectors parameters across the four quadrants. provide a comprehensive analysis A weightage of 50% is assigned to of Rajasthan’s export performance. India’s contribution in world exports, The sectors have been classified and another 40% to Rajasthan’s based on the score range specified in contribution in India’s exports. The Table 14. Table 14: Integration of Export Performance Analyses Competitiveness Overall Weightage

Competitive Advantage 0.05 and above

greater than 0.02 but less Potential India: World – 0.50 than 0.05 Rajasthan: India – 0.40 Rajasthan Index – 0.10 greater than 0.01 but less Vulnerable Overall – 1.00 than 0.02

Inconspicuous less than 0.01

Source: IMaCS analysis Assessment across the three competitiveness have been parameters reveals that the State considered and specific impact of has competitive advantage in the these drivers on various segments of sectors of dimensional stones, merchandise and services has been carpets, textiles and garments, and evaluated. tourism and hospitality. Moreover, • Factor endowments- Location; the State has export potential in the raw materials; other intrinsic sectors of animal, agro and food advantages like historical products, metal, chemical and allied presence of segments, market products (including tyres), gems and access, etc jewellery, and wool and wool products • Human capital strength- Skill (Table 15). availability; education and skilling institutes availability Qualitative Analyses • Support systems- Policy thrust; As part of the analysis of cost infrastructure; utilities – power, competitiveness for Rajasthan, water, etc; institutional structures; the following drivers of cost ease of doing business

71 Table 15 : Competitiveness Position based on Export Performance Analyses

Summary - 2016 Segments Dimensional Stones, Marble and Granite Carpets Competitive Advantage Textiles and Readymade Garments Tourism and Hospitality Animal, Agro and Food Products Metal Potential Chemical and Allied Products (including Tyres) Gems and Jewellery Wool and Wool products Engineering Plastics and Linoleum Vulnerable Leather and Leather Products Drugs and Pharmaceuticals Minerals Inconspicuous IT and ITeS Source: IMaCS analysis. Note: Although handicrafts is a competitive advantage segment, it is not reflected above due to unavailability of data in public domain for indexing with States

• Market access - Marketing; transition to the competitive advantage branding quadrant can also be explored. • Value chain position of Rajasthan Factor Advantages in key segments • Textile and Garments: Rajasthan • Key constraints for export growth is one of the most prominent locations for textile processing This analysis in conjunction with in India. In addition to being the individual segment analysis one of the largest producer and conducted in Chapter 2 and the exporter of polyester viscose quantitative analysis conducted in suiting - woven polyester fabric the previous section shall help sketch (mixed with viscose rayon), it is a holistic profile of the State’s export also emerging as an important competitiveness. The qualitative state for production and export analysis shall help in determination of readymade garments, cotton of the final quadrant position of the yarns, and nylon tyre cord fabrics. sectors. Thereafter, possibilities of

72 From the districts perspective, Jaipur, Udaipur, Jodhpur, Bhilwara is one of the major Bikaner and Jaisalmer. The manufacturing destinations in tourism and hospitality industry India for suiting fabrics and yarns. in Rajasthan derives strength Barmer is also being developed from the availability of attractive on similar lines as Bhilwara. The and diversified tourism products, district of Jaipur is one of the accommodation, transport largest centers for readymade services, and wide range of garment processing in India, and shopping products. a large number of units in Jaipur • Handicrafts: Handicrafts is an are catering only to the exports integral part of Rajasthan’s market. Pali, Balotra and Jodhpur culture. There is strong presence are also among the prominent of various types of handicrafts in centers of India for processing of the major districts of Rajasthan: low weight, low cost fabrics.  Textile Printing: Bagru, • Gems and Jewellery: Rajasthan is Chittroli, Sanganer, Jaipur, famous for its gems and jewellery Jodhpur industry, and is the largest base for  Zari : Jaipur and Barmer hand cutting of gems. The State  Stone Inlay: Rajasthan is is also known for silver smithy, lac known for the inlay on table bangles, kundan and minakari, tops, flooring, and wall enamelled gold jewellery, uncut decorative. In Jodhpur, inlay diamonds and emerald-cutting. is done on yellow Jaisalmer Being a traditional industry, it is stone well knit with Rajasthan’s cultural  Dolls and toys: Bassi and heritage, and has strong linkages Jodhpur with other segments like tourism.  Leather Footwear: Jaipur and Jodhpur • Tourism and Hospitality:  Rugs and Durries: Jaipur for Rajasthan is famous for cultural Rugs; Jaisalmer and Barmer and heritage tourism. It is popular for Durries for its historical palaces, forts,  Carpets: Jaipur and Bikaner monuments, structures, lakes,  mountains, sand dunes, desert, Jewellery: Jaipur national parks and wildlife, arts • Carpets: Rajasthan is famous and culture, fairs and festivals. for its carpets and their designs. Most preferred destinations for Trees and floral motifs are usually travel within Rajasthan include the designs on the carpets. These

73 carpets are well known for their manufacturing company Saint durability and colour fastness. Gobain has established its largest On account of the traditional skill manufacturing unit in Bhiwadi. sets, Rajasthan's carpet industry The mineral resources of the ranks third in the country after State also support the growth of Uttar Pradesh and Jammu and chemical and allied industries. Kashmir. Rajasthan has about 130 million • Agro and Food Products: tons of quartz deposits which is Agriculture and allied activities the main raw material for glass contribute significantly to the production. The only resource State’s economy. The agro challenge is the severe shortage climatic conditions are favourable of water in the State which for cultivation of variety of crop. impacts the growth of high water Jodhpur and Bikaner are the consuming industries. major areas for the production of • Engineering Products: In the food and agro products. auto sector, Rajasthan produces There exists substantial export almost every part and component potential in the areas of fresh that goes into an automobile. vegetables, amla, guava, aloe There are over 100 auto vera, oil cake, oil seeds, etc. component manufacturers in the There are also opportunities for State. canning, dairying, frozen food, Specialised areas are being fruits and vegetable, milk and developed in the State for milk beverages, and soft drinks in promoting production and exports the State. However, infrastructure from this sector. A 1167 acre needs to be built to support the industrial area mainly consisting same. of Japanese manufacturers has • Chemical and Allied Products been developed in Neemrana on (including Tyres): Several large Delhi Jaipur Highway by RIICO. companies have set up their base A special auto and engineering in Rajasthan. One of the India’s zone has also been developed leading tyre manufacturers, JK in Pathredi Industrial Area and Tyres, has a production unit in a similar zone is planned in Kankroli, 68 Km from Udaipur. Bhiwadi. In the electronics sector, BKT Tyres, known for tractor Bhiwadi is being developed as an tyres and off-road tyres, also ESDM hub. Basic infrastructure has a manufacturing unit in like power sub stations, roads, Bhiwadi. World’s leading glass drains, power lines, etc. is being

74 developed here. Forty hectare dependent industry and scarcity land has also been allotted to of water restricts the growth of Electronic Industries Association this segment. of India (ELCINA) for setting • Metals: Rajasthan has 210 million up an Electronic Manufacturing tonnes of identified lead-zinc ore Cluster (EMC) in this region. reserves with 1.5% lead and zinc, An additional 100 acres land and 639 million tonnes of copper has been allotted to ELCINA for ore reserves containing 0.8% setting up of EMC at Salarpur to 1.2% copper. The State has Khushkheda Extension by RIICO. immense potential for exports of Moreover, 125 acres of land at base and noble metals, deposits Kaladwas Extension, Udaipur of which extend over an area of has been reserved for developing 58,000 sq. Km. It covers Alwar dedicated zone for IT/ITeS and in the North to Banswara and Electronics Industries. Mahindra Dungarpur in the South and World City, a multi-product SEZ passes through the districts spread over 3000 acres has also of Jhunjhunu, Jaipur, Ajmer, Bhilwara, Rajsamand, Sirohi and been established at Jaipur. Udaipur. • Mineral Products: The State of • Wool and Woollen Products: As Rajasthan accounts for nearly per the latest available data in 11.5% of total mineral production 2012, Rajasthan accounted for 6 of India . Western Rajasthan has 30% of the total wool production large deposits of hydrocarbons. in the country. However, its share Barmer has estimated reserves in exports remains low at the of 6.5-7.2 million barrels (900- national level. 1000 million tonnes of crude • Drugs and Pharmaceuticals: India oil equivalent). Moreover, 25- is a leading source for production 30 billion cubic metre of natural and exports of pharmaceuticals. gas reserves have also been The country is currently the discovered in Manohar Tiba, largest exporter of generic drugs. Tanot, Dandewala and Shahgarh Indian pharmaceutical companies in Jaisalmer basin. Additionally, are capable of meeting the 25 million tonnes of heavy oil regulations set aside by strict reserves and 53 MT bitumen markets like the USA and the EU, have been discovered in Bikaner- and are focusing on increasing Nagaur Basin. Mining is a water their export businesses.

6Source: Indian Bureau of Mines, Ministry of mines, 2014

75 Rajasthan, in tandem, has also Smart Centres have been set up witnessed a rise in biotechnology in the State. industry. The SME sector is • Gems and Jewellery: Rajasthan driving the growth in biotech and has the advantage of availability ancillary industries, supported by of manpower with traditional the rich bio-diversity in the State. skills. However, these traditional Animal husbandry and genetic skills need to be strengthened engineering are considered as with upskilling measures related potential sectors for economic to processing and enhanced development in Rajasthan and the quality standards adherence government is keen on promoting to keep pace with international industrial activities to capitalize trends and expectations. on the inherent strengths over longer time horizon. For training and skill upgradation, • Leather and Leather Products: various institutes have been setup Rajasthan has a rich livestock in the State which offer courses population, resulting in the State related to gems and jewellery. being one of the largest producers Some of these are: of leather. The leather craft  Indian Institute of Gems and goods in Rajasthan are made of Jewellery camel hide, which is abundantly  Nakshatra Institute of available in the State. The leather Jewellery Designing units in Rajasthan are household  Indian Diamond Institute based and employ people for embroidery and stitching work. • Tourism and Hospitality: In 2011, The city of Jodhpur is famous for the services sector accounted leather jutties and that of Bikaner for nearly 23% of the State’s is known for its leather goods. total employment. Within Human Capital Strength services, tourism and hospitality is an important segment from • Textile and Garments: The sector employment perspective. is one of the largest sources of employment in Rajasthan. For There are various institutions in supporting the sector through the State which provide tourism manpower training, 16 Apparel and hospitality related courses. Training and Design Centre - However, skill levels and overall

76 ability to liaison with foreign are demand driven, and tastes tourists across the tourism value and preferences keep changing chain needs to be strengthened. regularly, the skill development councils are entrusted to take • Dimensional Stones: Rajasthan necessary measures to enhance is a mineral rich State having the skill set of artisans who cater 79 different types of minerals, to the international markets. In most of which are commercially Rajasthan’s case, Rajasthan Skill extracted. The State is the largest and Livelihoods Development producer of many of the major Corporation handles the skill minerals such as lead–zinc, development related activities in calcite, gypsum, rock phosphate, this sector. The Indian Institute of and minor minerals like Marble, Crafts and Design (IICD) is also sandstone and serpentine located in Jaipur. (green marble), granite etc. The state also has huge reserves of • Carpets: Some private institutes lignite, crude oil, bitumen and provide courses related to the natural gas. carpets industry. Some schools also promote carpet making skills. Although not blessed with a large Apart from these, carpet making coastline, the infrastructure of skills are also handed down in a the State is developed to support traditional manner. the requirement of the mining sector. The rural mining zones • Agro and Food Products: The are connected to the processing share of employment in primary centres and markets through sector of the State was 51% in broad-gauge railways and 2011. There are various institutes national highways. There are well in the State which provide courses equipped pipelines for transport of related to the industry. These crude oil to refineries in Gujarat. include: In addition to the above, the Delhi-  Rajasthan Agricultural Mumbai Industrial Corridor is also Research Institute expected to provide a boost to the  Swami Keshwan and transport infrastructure. Agriculture University • Handicrafts: Close to 60% of  Rajasthan Agricultural the products manufactured by University India's handicrafts sector are  Maharana Pratap University exported. Since these products of Agriculture and Technology

77  S K N University of Agriculture The Rajasthan Mineral Policy  National Institute of 2015 has special focus on skill Agriculture Management development. A three-year • Chemical and Allied Products Diploma Course in mining will be (including Tyres): The tyre and started in Chittorgarh. In existing glass manufacturing industries ITIs, 6-month courses will be employ skilled labourers and started for dumper operators, Rajasthan has many technical dozer operators and excavator institutes to cater to such needs. operators. A short course However, there is a need to structured by the Department of upgrade the technical skills of Mines and Geology, Rajasthan the manpower currently working will be promoted through ITIs across the sector. and other training institutions • Engineering Products: Rajasthan to improve skills of existing has technical institutes which have persons working in mines. Apart an intake capacity of over 2 lakh. from this, various workshops, The State has 126 engineering seminars and training sessions colleges, 219 government will also be conducted to improve sanctioned Industrial Training the knowledge of the current Institutes (ITIs) and 1597 private manpower employed in the ITIs. In spite of this, availability of sector. skilled manpower is an issue in Rajasthan and there is a scope • Metals: The sector requires for developing technical skill set technically skilled manpower and in the labourers. The government although Rajasthan has various is committed to build and develop institutes which provide technical trained human resources. To education, a significant gap exists address the issue of unavailability in skill set required. of trained manpower for shop floor, an operations and tool room • IT, ITeS and Electronics: Select training centre is being planned institutes providing courses over 10 acres in Bhiwadi. related to IT and Electronics in the State are: • Mineral Products: Mining is a human capital intensive industry  Rajasthan Institute of and requires specific skill set. Engineering and Technology There is a need to upgrade the  Compucom Institute of available skill set in the State. Technology and Management

78  Rajasthan Engineering Support System College • Textile and Garments:  Various private institutes  Rajasthan Investment • Wool and Woollen Products: The Promotion Scheme (RIPS): key institute available in the State The scheme provides for for supplying human resources to 50% reimbursement of VAT the industry is Central Sheep and on purchase of yarn, fibre, Wool Research Institute. recycled fibre yarn, cotton and pet bottles for use • Drugs and Pharmaceuticals: in manufacture of goods A National Institute of within the State. There is Pharmaceutical Education and also mechanism for interest Research (NIPER) has been subsidy for units in the textile proposed in the State of Rajasthan sector. Enterprises making to enable easier access to a minimum investment qualifications for handling the of Rs. 2.5 million in the basic work in a plant or an R&D textile sector can avail of set-up in India. 5% interest subsidy, while • Leather and Leather Products: those making investment of Select institutes providing more than Rs. 250 million courses related to Leather and can receive additional 1% Leather products are: interest subsidy. Apart from  Rajasthan Institute of Leather this, 7% interest subsidy is Technology also provided for units in the 7  Footwear Design and technical textile sector . Development Institute,  Rajasthan State Industrial amongst others Development and Investment • Plastics and Linoleums: Central Corporation (RIICO): For the Institute of Plastics Engineering loans from RIICO, a rebate and Technology (CIPET) and of 2% is provided on the other private institutes are present prevailing rate of interest. in the State for supplying human Additionally, a rebate of resources to the industry. 1% is also given under the

7Resurgent Rajasthan Policy document, 2015

79 Incentive Scheme for Good promoting G&J exports. There is Borrowers. The incentive also an SEZ dedicated to gems under RIPS is valid for textile and jewellery at Mahindra World machinery covered under City, Jaipur. There are also various the Technology Upgradation associations and councils which Funds Scheme of the promote gems and jewellery Government of India. This exports from the State viz. Gems support is over and above and Jewellery Export Promotion the support from Government Council, Jewellers Association, of India under which the Jaipur, and Federation of maximum interest subsidy on Rajasthan Exporters, amongst others. term loan is at 6%. Hence, for the eligible textile units in • Tourism and Hospitality: Rajasthan, the net interest  Rajasthan Tourism Unit rate applicable on term loans Policy 2015: The policy aims 8 is negligible . at strengthening the existing  In addition to the above, eight infrastructure, fostering integrated textile parks of infrastructure development, Rs. 40 crore each have been generating income and sanctioned in Rajasthan with employment, and increasing the Central Government the hotel room availability in assistance and are at various order to match the needs of stages of development. the tourists. A special Power Loom  Rajasthan Investment Industrial Area is also being Promotion Scheme 2014: set up by RIICO in Pali The policy aims to promote district. investments and generate • Gems and Jewellery: Special employment. Tourism gemstone export processing and Hospitality industry is zones have been set up by considered a priority sector Rajasthan Government for under the scheme.

8Resurgent Rajasthan Policy document, 2015

80  There are various  Department of Petroleum has associations and councils its Directorate at Jaipur and to promote tourism and is entrusted to control mineral hospitality in the State, like concessions for petroleum o Federation of Hospitality and gas in the State. and Tourism of Rajasthan  Rajasthan State Mines and o Rajasthan Tourism Minerals Limited is a state- Development Corp owned company involved in mining and marketing mineral o Hotel Association rock phosphate, lignite, o Indian Heritage Hotel gypsum and limestone. Association  CAPEXIL, a non-profit o Hotel and Restaurant organization, was setup in Association of Rajasthan March 1958 by the Ministry  There are over 150 hotels of Commerce, Government in Rajasthan with more than of India to promote export of 6,000 rooms. Of this, 36% chemicals and allied products fall under the heritage hotel from India. Although, there is category. Rajasthan Tourism no separate export promotion Development Corporation council for minerals/ also owns ‘Palace on dimensional stones, most Wheels’, along with Indian of these items fall under Railways. the ambit of CAPEXIL which has a presence in • Dimensional Stones: the State.  The State Mineral Policy (2015) focuses on achieving • Handicrafts: better productivity using  Export Promotion Council cutting-edge technology and for Handicrafts (EPCH) well equipped tools, along is the apex government with reduction in wastage body and operates under and better recycling. the administrative control  Department of Mines and of the Ministry of Textiles, Geology has its Directorate Government of India. There at Udaipur and is involved are regional offices of EPCH in setting up a well-defined in Jaipur and Jodhpur to policy for the grant of mineral monitor the exports from concessions. Rajasthan.

81  Handicrafts SEZ at Mahindra  There are various World City, Jaipur has been associations and councils set up to offer the advantage which promote exports of of modern infrastructure agro and food products from and facilities, combined with the State. These include: access to raw material and o Federation of Rajasthan abundant skilled labour to Trade and Industry handicraft exporters. (FORTI)10  The Federation of Rajasthan o Export Promotion Handicraft Exporters also Council for Agro and actively engages with the Processed Food Government bodies to ensure o Rajasthan State adequate market access for Agricultural Marketing exports from Rajasthan. Board

• Carpets: There are various  There are about 10 agri associations and councils for export zones and several promotion of carpet exports from units of food processing the State. These include: (over 10,000 units in micro  Rajasthan Carpet and small scale and over 75 Manufacturers and Exporters in medium and large scale) in Association the State. The State has an  Indian Carpet Export integrated food park having Promotion Council common facilities, research,  Federation of Rajasthan infrastructure and an enabling Exporters (FORE)9 industrial environment. Post-harvest infrastructure • Agro and Food Products: in Agro Food Parks at Kota,  Rajasthan Agro-Processing Jodhpur, Sriganganagar and Agri Marketing Promotion and Alwar have also been Scheme, 2015: The vision developed by RIICO for of the policy is to make agro based industries. Rajasthan the destination Another Food Park is being of choice for domestic and developed near Kishangarh international investors in the in under the processing sector. Scheme of Government of

9Carpets is one of the focus areas for the organization 10Food processing is one of the focus areas for the organization

82 India. Approvals have also products like air conditioners, been obtained for Cold Chain microwaves, mobile phones establishment in the State. etc. • Chemical and Allied Products  The Department of Industries, (including Tyres): The Investment Rajasthan is responsible for Promotion Policy 2014 mentions formulation of policies and glass manufacturing as one of providing support to this the ‘thrust’ industries. This is sector. Apart from this, CII, expected to attract major glass FICCI FORTI and FORE manufacturers for setting up also play an important role production in the State. in industry and trade policy formulation. ` Department of Industries, RIICO  Engineering Export and industry associations Promotion Council (EEPC) like CII, FICCI, FORTI, does not have any Rajasthan CHEMEXCIL (Basic Chemicals, specific unit and its regional Pharmaceuticals and Cosmetics office in New Delhi caters EPC) and CAPEXIL (Chemical to the entire northern and Allied Products EPC), along region. Electronics and with FIEO cater to the export Computer Software Export promotion, marketing and Promotion Council (ESC) branding of tyre and chemical is the body responsible for products in the State. export promotion activities • Engineering Products: in the electronics sector. It  Owing to initiatives such as has its head office in Delhi the Rajasthan Investment which caters to the entire Promotion Scheme 2014, a northern region. FIEO has total of Rs. 68 billion is to be a regional office in Rajasthan invested in the auto sector which caters to promotion of with focus on passenger products across industries cars, tractors, two and three from Rajasthan. wheelers, commercial vehicle • Mineral Products: Rajasthan assembly units; forging, has come up with a new Mineral casting, gears and other Policy 2015 with the objective component manufacturing. to infuse greater transparency In the electronics hardware and efficiency in granting sector also a total of Rs. 12 mineral concessions by adopting billion is to be invested in e-governance. It aims to establish

83 a conducive framework of evolve e-Governance for procedural, regulatory, legal and improvement in delivery of fiscal aspects with respect to services; bridge the digital investment regime. The objective divide and evolve Digital also includes development of Rajasthan. scientific mining techniques with due regard to safety, productivity,  There are various cost effectiveness, environmental associations and councils to and social sustainability. It promote IT and ITeS exports also aims to promote R&D in from the State. association with private players in o Federation of Rajasthan the State. Trade and Industry

Department of Mines and Geology, o Electronics Industry Rajasthan, and Directorate Association of India of Petroleum, Rajasthan are o Rajasthan Chamber government bodies associated of Commerce and with this sector. Federation of Industries Mining Associations of Rajasthan  RIICO has developed IT (FMA) is the relevant industry parks in Jaipur, Kota, Udaipur association in this sector, and and Jodhpur. Infrastructure FORE, CAPEXIL and FIEO help in export promotion activities. with respect to road, power, plots, etc. in these parks is • Metals: Department of Industries, taken care by RIICO. Apart EEPC, FIEO and FORE are from these, Mahindra World the stakeholders involved in City, an SEZ in Rajasthan, this sector. The Investment developed by Mahindra Promotion Policy and the MSME Group and RIICO, has a Development Policy both will dedicated IT zone, providing positively impact metal product telecom and broadband manufacturers. connectivity, satellite linkage, • IT, ITeS and Electronics: voice and data solutions. These infrastructure help  The Rajasthan E-Governance IT/ITeS Policy 2015: The attract investment into the IT vision of the policy is to sector. There are also plans of achieve good governance developing Electronics Park and facilitate inclusive and Electronics Hardware growth; harness ICT and Technology Park.

84 • Wool and Woollen Products: o Federation of Rajasthan There are various associations Handicraft Exporters and councils to promote wool (FORHEX) and woollen products in the State o Federation of Rajasthan which include: Trade and Industry  Jaipur Wool and Namda  There are about 20,000 Association unorganized units engaged  Garment Exporters in tanning in the State. There Association of Rajasthan are also several household • Drugs and Pharmaceuticals: based artisans involved in As per RIPS 2014, sectoral making the traditional leather policies have been defined for shoes called juttis made of biotechnology and pharmaceutical tough leather. sector. • Plastics and Linoleums: Plastics and linoleum industry is a • Leather and Leather Products: priority sector in the Rajasthan

 Indian Leather Development Investment Promotion Scheme. Programme has been Plastics Manufacturers proposed by the Government Association promotes the industry to boost the leather industry in the State. in the State. Market Access  There are various associations and councils • Textile and Garments: RIICO for promotion of exports of organizes fairs and buyer-seller leather products from the meets to facilitate better market State. These include: access for textile manufacturers from Rajasthan. For example, o Jawaja Leather a four-day long exhibition, Association titled VASTRA -2013 was o Rajasthan Chamber jointly organized by RIICO and of Commerce and Federation of Indian Chambers of Industries Commerce and Industry in 2013 o Rajasthan Craft Council projecting India and specifically of India Rajasthan as a prominent sourcing o Council for Leather hub and investment destination. Exports (CLE) There was participation from 202

85 exhibitors and 421 buyers from could also explore options for 66 countries. exporting granite and marble in processed form to maximize • Gems and Jewellery: For export earnings. marketing and branding of these products, exhibitions • Handicrafts: are organized at Jaipur.  Jodhpur Mega Cluster: These facilitate establishment Various marketing activities of national and international are being carried out under linkages. Comprehensive Handicrafts • Tourism and Hospitality: The Cluster Development marketing and branding of Scheme. tourism and hospitality industry is  E-commerce: Snapdeal, an done by organizing fairs, events, Indian online market place shows and festivals. Liasioning has partnered with Rajasthan with the travel agents across the Small Industries Corporation country and abroad is another (RSIC) as an online channel form of marketing. to promote Rajasthan Handicrafts. Although this The planned E-Visa scheme will platform is only available double the tourist inflow to India domestically, this model can and the State. The State has be explored for increasing launched a new logo and brand market access internationally identity for the campaign. There too. is also a focus on strengthening the infrastructure.  Trade Fairs: A number of trade fairs / exhibitions • Dimensional Stones: Stones from are being held in India to Rajasthan such as white marble showcase the domestic of Makhrana and Rajsamand, handicrafts. Support is also green marble of Udaipur, yellow provided for exporters to marble of Jaisalmer, wood attend international trade textured marble of Churu, fairs/ exhibitions and increase sandstone, slatestone, kota stone market access. and granite, are famous across the world. Appropriate branding  Retail outlets: The marketing activities can be undertaken to outlets of RSIC are planned further promote these stones to be extended either through in global markets. Rajasthan opening new emporia or

86 through franchises. RSIC • Agro and Food Products: The has also undertaken a major Rajasthan State Agricultural renovation program for its Marketing Board takes care existing retail outlets at of the agricultural marketing Rajasthan and Delhi. development activities. Also, they have taken up the task to export  A Handicraft-cum-Tourism fruit and vegetable from the State. Complex is being built at Jaipur by RSIC to provide Agro and food products industries a single show-window for hold a major share in the State’s the crafts of Rajasthan and exports. With the establishment other parts of India, along of Mega Food Park and other with tourism related facilities support policies, there is huge e.g. travel centres, exchange potential for the sector to become counters, etc. competitive.  Benchmark / Branding: • Chemicals and Allied Products In order to make (including Tyres): CAPEXIL, Indian handicrafts globally CHEMEXCIL along with FIEO hold competitive, RSIC is planning exhibitions and trade fairs, and to develop a quality bench- help in marketing and branding marking in association with activities of these products. internationally experienced agencies. All exports and • Engineering Products: The exporters are to be brought major markets for Rajasthan’s under this scheme by exports of engineering products promoting and marketing are the USA, the UK, the EU, them under the license of Middle East, Africa and some “Craftmark” issued by All India ASEAN countries. Electronics Artisans and Craftworkers and hardware products from the Welfare Association (AIACA). state are being exported to Africa (Benin, Tanzania, and Ghana), • Carpets: The marketing and the USA, Canada, Australia branding of carpets are largely etc. Major destinations for the done by organizing exhibitions exports of auto parts are South which facilitate establishment East Asia (Indonesia, Thailand), of national and international Japan, the UK, Brazil etc. Fully linkages. built automobiles are also

87 exported, mainly in the form of the developed countries. passenger cars with petrol engine Spain, Germany, the USA, the of capacity 1000cc-1500cc (HS Netherlands, and the UK were code -870322) and motorcycles the top destinations in 2015-16. with petrol engine of 50cc-250cc Leather bags, and suitcases (HS capacity (HS code -871120). code 4202) were the top exported The major export destinations items followed by leather apparels for fully built automobiles are (HS code 4203). South Africa, Japan and SAARC nations (Nepal, Sri Lanka, and Artisans in the State lack market Bangladesh). information, especially those • Mineral Products: China and pertaining to restrictions on selling Bhutan are the major markets for leather products in certain areas. minerals exports from Rajasthan. There are some exhibitions and FORE and CAPEXIL organize fairs organized by CLE, FORHEX various exhibitions and trade and others. However, there is fairs for the promotion of minerals need for more export promotion exports from Rajasthan. activities.

• IT, ITeS and Electronics: The A major challenge for the sector marketing strategy in case of is over dependence on the EU Rajasthan is creating special and the USA markets. Despite zones and attracting investments market diversification efforts of from across the country and the world. Having a dedicated SEZ CLE, the current penetration of in the State, the industry has leather products in new markets potential for growth and becoming like Japan, Russia, UAE, South competitive in the long run. Korea, Saudi Arabia, Australia etc. has been quite low. • Wool and Woollen Products: There is need for improvement in Value Chain Position of Rajasthan market access for these products. • Textile and Garments: The size • Leather and Leather Products: of the textile industry can be The major markets for leather estimated by way of private final and leather product exports consumption expenditure on clothing and export value of textile from Rajasthan are largely products. The more advanced the

88 product in the value chain, greater transportation, infrastructure, is the export value attached to it. energy and electronics. Figure 27 highlights the general • Gems and Jewellery: G&J is a value chain for textile processing high value export segment for and Rajasthan’s position in the the State. Figure 28 highlights same: Rajasthan’s presence in the value Rajasthan has its presence across chain for gems and jewellery. all stages of the textile value chain. Though this is a traditionally The key challenge for the State strong segment of exports, there is to diversify its export profile needs to be more market linkages, by making forays into emerging customer trends reflection, areas such as technical textiles, processing and capacity building which find usage in sectors like to boost the segment further.

Figure 27 : Textile Value Chain – Rajasthan’s Position

Note: Stages marked in green indicate parts of value chain that currently have a significant presence in Rajasthan. Stages marked in yellow indicate parts of value chain which are potential areas for value addition in Rajasthan. Stages marked in grey are those where Rajasthan does not have a presence, and there is limited scope for improvement.

89 Figure 28 : Gems and Jewellery Products Value Chain – Rajasthan’s Position

Note: Stages marked in green indicate parts of value chain that currently have a significant presence in Rajasthan. Stages marked in yellow indicate parts of value chain which are potential areas for value addition in Rajasthan. Stages marked in grey are those where Rajasthan does not have a presence, and there is limited scope for improvement.

• Tourism and Hospitality: and screening stage. Mechanized Rajasthan has a significant mining and further processing presence across the value chain can add significant value to the for tourism and hospitality industry exports from the State. Figure 30 (Figure 29). Through promotions, highlights the value chain for this visibility drives and diversification segment and Rajasthan’s position of the offerings, the tourism and in the same. hospitality industry can attract • Handicrafts: Though this is a tourists from countries other than traditionally strong segment, the European Union. there needs to be more market • Dimensional Stones: On linkages, customer trends account of the State’s factor reflection and capacity building endowments, dimensional stones to boost the segment further. have emerged as important Figure 31 highlights the general export items. There is significant value chain for handicrafts potential for value addition in the and Rajasthan’s position in sector at the processing, finishing the same.

90 Figure 29 : Tourism and Hospitality Value Chain – Rajasthan’s Position

Note: Stages marked in green indicate parts of value chain that currently have a significant presence in Rajasthan. Stages marked in yellow indicate parts of value chain which are potential areas for value addition in Rajasthan. Stages marked in grey are those where Rajasthan does not have a presence, and there is limited scope for improvement.

Figure 30 : Dimensional Stones Value Chain – Rajasthan’s Position

Note: Stages marked in green indicate parts of value chain that currently have a significant presence in Rajasthan. Stages marked in yellow indicate parts of value chain which are potential areas for value addition in Rajasthan. Stages marked in grey are those where Rajasthan does not have a presence, and there is limited scope for improvement.

91 • Carpets: India and Rajasthan has to be supported by are doing well in the carpet good infrastructure, quality segment internationally. The and know-how. Figure 32 carpet industry has thrived over highlights the general value the years due to the exquisite chain for this segment and the workmanship, vibrant colours areas where Rajasthan has and traditional designs. However, scope for improvement. there needs to be a transition to contemporary designs, along with • Chemicals and Allied Products focus on R&D and technology. (including Tyres): National • Agro and Food Products: There Chemical Policy aims at increasing is substantial potential for the chemical sector growth rate for value addition in the agro and India to 6% from the current 2%. food products sector. Greater Rajasthan can play an important processing of agro products role in achieving this through can help enhance value of its contribution in the sectors exports from the State. This of bulk organic and inorganic

Figure 31 : Handicrafts Products Value Chain – Rajasthan’s Position

Note: 1. Stages marked in green indicate parts of value chain that currently have a significant presence in Rajasthan. Stages marked in yellow indicate parts of value chain which are potential areas for value addition in Rajasthan. Stages marked in grey are those where Rajasthan does not have a presence, and there is limited scope for improvement. 2. NER crafts refers to craft of the North Eastern region.

92 Figure 32: Agro and Food Products Value Chain – Rajasthan’s Position

Note: Stages marked in green indicate parts of value chain that currently have a significant presence in Rajasthan. Stages marked in yellow indicate parts of value chain which are potential areas for value addition in Rajasthan. Stages marked in grey are those where Rajasthan does not have a presence, and there is limited scope for improvement. chemicals, agrochemicals, • IT, ITeS and Electronics: The key dyestuffs and specialty chemicals business segments in IT and ITeS (through investment in R&D). are: This may be done by capacity Project Oriented consolidation of small units and - IT Consulting greater investments in Petroleum Chemical and Petrochemical - Systems Integration Investment region. - Custom Application Development • Engineering Products: There is considerable potential for exports - Network Consulting and of auto components from the Integration State. Auto is a fast growing - Software Testing segment, especially in the areas Outsourcing of Bhiwadi and Neemrana. - Application Management However, the area faces acute - IT Outsourcing power shortage which has been - Others affecting the industry. There is also a need to have better and Support and Training wider roads as well as an ICD - Software development and in the area. Infrastructure and support overall support to industry need - Hardware deployment and to be strengthened. support

93 - IT education and training • Need for creating awareness regarding the methods of The project oriented services and advertising, packaging and sale outsourced services segment of goods have maximum export potential for the State. Though these • Logistics have to be improved in business segments are present, the State to support export these need to be strengthened • Adequate availability of power over a longer time horizon. and water is a challenge which has to be strengthened Challenges Apart from this, the State has some Some of the recurrent and critical segment-specific challenges. challenges across various sectors in • Textile and Garments Rajasthan include the following:  Access to Finance: Lack of • Overall institutional structure awareness about various needs to streamlined and government schemes and strengthened procedures to avail credit is a concern. • Inadequacy of appropriate skill  Issue of Raw Material sets is critical and has led to Availability: Cotton is one productivity constraints of the most important raw • Lack of technological up gradation material for the industry. in several sectors has led to Improper rains directly impact inefficient processes the industry by reducing the cotton harvest. Sourcing • Quality of produce is a challenge good quality raw materials and may limit ability of State to is a challenge for the textile compete in international arena industry. • Infrastructure and know-how for  Lack of Quality Control: There processing and value addition is lack of comprehensive has to be ramped up quality control measures for textile products. This results • Branding of Rajasthan produce in inadequate adherence must be improved in select to international standards. sectors like gems and jewellery, As a result, exports from handicraft, etc Rajasthan loose out in key

94 markets like the US and the India to the US, along with EU to their competitors. intense competition from Viet Nam and Bangladesh,  Lack of Product Diversification: Textile and inadequate marketing of industry in Rajasthan is highly Rajasthan's textile products, dependent on cotton and pose a challenge for the wool as raw material. Lack of sector. product diversification results • Gems and Jewellery in a narrow export basket with limited opportunities.  Raw Material Availability: Bulk of the gemstone processing  Non- Tariff Barriers (NTBs) industry in Rajasthan is to Trade: NTBs pose a dependent on imports of serious challenge to growth raw materials from Africa. in exports. Trade Agreement negotiations look to minimize However, over time, imports the impact of both tariff from Africa have become barriers and NTBs. Yet expensive, and Governments there is widespread use of in several countries have NTBs as a tool to protect started imposing conditions domestic market and restrict for exports. For example, competition. A list of generic Tanzanite, which is found in NTBs which affect all abundance in Tanzania, was segments of exports is given a key gemstone imported in Annexure. Apart from these by India for value addition generic NTBs, there are and exports. However, also various sector-specific Government of Tanzania ones. Textile sector is one has now put restrictions on of the most affected sectors, exports of the gemstone. especially on account of  Inadequate Adoption of NTBs imposed by developed Changing Trends: The Design nations like the US and the Development Centre needs EU. Some of them have been to be strengthened to provide listed in Table 16. feedback on design changes  High Import Duties: High or innovations in the market, tariff rates on a few textile so that the manufacturers products exported from can adapt to the changing

95 Table 16 : NTBs in Textiles and Apparels Segment

Type of Non Imposing Segment Example Tariff Barrier Country The E.U. recently came out with Technical revised set of standards like REACH Textile and Barriers to The EU (Registration, Evaluation, Authorisation Apparels Trade and Restriction of Chemical Substances) for textile and apparel sector The textile products being imported into the EU have to meet their labelling Technical requirements containing information Textile and Barriers to The EU about the product – size and dimensions, Apparels Trade fibres used, intended use of clothing, information about the producer and the importer The Ministry of Economy and International Technical Trade and Industry requires specification Textile and Barriers to Japan regarding type of fabrics, washing Apparels Trade instructions and details of manufacturer/ supplier The Japan Textile Federation has Technical Textile and Voluntary Standards on Non-use of Barriers to Japan Apparels Harmful Substances for Textiles and Trade Clothing regarding Azo Dyes The USA has labelling requirement Technical Textile and for 95% of the apparel tariff lines, thus Barriers to The USA Apparels preventing import of uncertified, sub- Trade standard and non-copyright products Commodity Credit Corporation of the U.S. Department of Agriculture provides Government subsidies to producers of textiles and Textile and Subsidies and The USA apparel. A monetary amount equivalent Apparels Support to what a person would have saved if the tariff-rate quotas on wool were still in effect is provided to the producers. The USA also provides subsidies to producers and users of cotton involved in Government promotion of use of pima cotton in textiles Textile and Subsidies and The USA and apparels; yarn spinners of pima Apparels Support cotton; and manufacturers who cut and sew cotton shirts who certify that they used imported cotton fabric Source: IMaCS analysis

96 needs and remain relevant in toxicologist to evaluate art the international market. materials for their potential to cause chronic hazards  Fragmented and Unorganized (Table 17). Market: The industry is unorganized and comprises • Tourism and Hospitality several small players, due to which they have limited  Most of the foreign tourist access to new technology and arrivals in Rajasthan are from manufacturing processes. the European nations. Other markets also need to be  Competition from Other tapped. Countries: Italy, China, Namibia, Botswana and • Dimensional Stones South Africa are major  Lack of Modern Technology competitors for Rajasthan and Processes: Most of in the markets for cut and the marble from the State polished diamonds, and is exported to other states gold and studded jewellery. for processing. The mining These countries possess infrastructure is not up to comparative advantage in date, and technology and terms of infrastructure and processes also need major technology. overhaul. Upgradation of  Non-Tariff Barriers: The processing tools is required in G&J sector is also adversely order to enhance productivity affected by NTBs. Among and reduce wastage. the most important ones is the Labelling of Hazardous  Water Scarcity: There is Art Materials Act in the USA, significant requirement which requires a certified of water for cutting and

Table 17: NTBs prevalent in Gems and Jewellery Segment

Type of Non Imposing Segment Example Tariff Barrier Country Technical Gems and Conform to the provisions of the Labelling Barriers to The USA Jewellery of Hazardous Art Materials Act Trade Source: IMaCS analysis

97 polishing of stones. testing and performance Ceramics manufacturing measurement techniques is also needs large quantity of a challenge for the industry. water. Rajasthan faces water There is no single monitoring, scarcity which restricts the regulatory and “assessing growth of the sector. and certifying” body for all the skills required in the  Pollution and Waste Disposal industry. Moreover, there Issues: The hazardous waste are no formal mechanism to generated due to mining identify the quantum or type of stones is also a major of manpower required for concern. It creates health various segments. issues for workers and impacts mining activities.  The CITES Issue: In a Steps for recycling of mining recent notice by CITES (the slurry and standard waste Convention on International disposal methods need to be Trade in Endangered Species implemented. of Wild Fauna and Flora), the sheesham wood family • Handicrafts which is used for making  Limited Design Capability: wooden handicrafts has been There is a lack of awareness classified as endangered about new trends and species. As a result, its use designs patterns among for making handicrafts for craftsmen. Hence there is export purpose would now be a need to train the artists restricted and such products in designing activities. Tie will attract additional duties. ups with major designing The exporters associations institutions can enhance are already in discussions the value addition, as well with the Ministry of Commerce as facilitate development of to resolve the issue. newer products.  Lack of Quality Assurance:  Lack of Testing Infrastructure Ensuring quality norms (ISO and Certification Standards: 9001:2008, ISO 14001) and Inadequate material strict adherence to National

98 Occupational Standards is carpet industry in key export also a challenge. markets.

 Extinction of Traditional  Long lead time to produce Crafts: With the ongoing the goods is also a key mechanization and lack constraint. of skilled labour, certain • Agro and Food Products traditional crafts are facing extinction.  Inefficient Infrastructure: Inadequate cold storage • Carpets network in Rajasthan renders  Limited Design Capability: the agro and food products Lack of awareness regarding unfit for exports. new trends and designs  Contamination of Products: patterns among craftsmen Lack of awareness amongst is a key constraint for export farmers, labourers engaged growth. in crop plucking activities  Social Audit Norms: Social and transporters leads to accountability has become contamination of food items, one of the most important and makes them unfit for parameters for buyers exports. in international markets,  Lack of Awareness among and adherence to social Farmers: There is lack compliance is emerging as of awareness regarding a pre-requisite for buying benefits of rotational goods. Although child labour cropping. There is also lack is an issue plaguing several of awareness pertaining industries in India, no other to organic products which industry has received such fetch higher value in export extensive attention as the market. The organic produce carpet industry. The use of of the State is limited and child labour in hand knotted farmers are mixing it with the carpets in India is widely normal produce to increase reported and documented. quantity. As a result, the Being an export oriented organic produce is being sold industry, this issue adversely at normal prices. Farmers impacts the image of Indian also need to be informed

99 about various export market production and consequently drivers. on the export volumes.  Various industries of the  Non-Tariff Barriers to trade: tyres and basic chemical NTBs significantly impact the sector fall under different agro and food sector. This export promotion councils. still remains one of the most This results in an incoherent protected sectors for majority marketing effort of the trading nations. Some of the key NTBs faced in this • Technical barriers related to sector are listed in Table 18. regulatory and environmental clearances hamper the • Chemical and Allied Products growth of exports from this (including Tyres) segment. Some of the NTBs  Time taken by Government are listed in Table 19. bodies to process refunds of VAT, duty drawbacks • Engineering Products etc. impacts the working  The auto hub in Neemrana capital of exporters. This can and Bhiwadi face acute have a negative impact on power shortages which

Table 18 : NTBs prevalent in Agro, Animal and Food Product Segment

Type of Non Imposing Segment Example Tariff Barrier Country

The Food Safety Modernisation Act Technical Agro and (FSMA) makes it mandatory for importers Barriers to The USA Food to perform "supplier verification process" Trade which requires FDA inspection of suppliers.

Technical Agro and Meet import requirements related to grade, Barriers to The USA Food size, quality and maturity Trade

Import Licensing, Agro and Certain plant and products, chemicals face Quotas The USA Food import licensing in the US Restrictions and Prohibitions

Source: IMaCS analysis

100 affects production. Road the entire sector. Moreover, infrastructure in the area also these export promotion needs to be upgraded. There councils (EEPC and ESC) is also a need for an ICD in do not have presence in these areas. Rajasthan which further dilutes the focus.  There are no internationally recognized standards which  Exogenous factors like NTBs are prevalent across the especially in developed markets like the USA, the sub sectors. Moreover, there UK, Japan and the EU also is lack of enforcement of deter expansion of exports. relevant standards which This is especially a constraint results in poor quality for the auto and auto parts products being exported. sector. Some of the NTBs  Engineering being a vast in the auto and auto parts sector encompasses various sector are listed in Table 20. industries which fall under • Mineral Products: The exports of different EPCs. Hence, there mineral products are declining on is not a single body focusing account of falling global demand on the promotion activity of especially from China which was

Table 19 : NTBs prevalent in Chemical Segment

Type of Non Imposing Segment Example Tariff Barrier Country

Different Minimum Residue Levels (MRLS) Technical The EU Chemical required by the member countries for Barriers to Trade pesticides, drugs and other contaminants

Import Licensing, Quotas Certain chemicals face import licensing in The USA Chemical Restrictions and the US Prohibitions

For pesticides, regulations require Procedural importers to submit to the U.S. Customs Complications and Border Protection an Environmental The USA Chemical and Protection Agency’s (EPA) Notice of Arrival Documentation that the EPA has reviewed and approved before the importation arrives in the US

Source: IMaCS analysis

101 the biggest export market, sharp of mining leases. Over a five decline in prices for minerals year horizon, it shall be difficult and petroleum products, and for the sector to become institutional and infrastructural competitive on account of these inefficiencies. challenges.

The major challenges to minerals OVERALL ANALYSES exports from Rajasthan inter alia include payment delays from The export competitiveness of overseas buyers and distributors, various segments as evinced by the foreign government rules and export performance of the State is regulations, inadequate export matched with those areas where infrastructure, and complex factor advantages, human capital documentation requirements. strength, support system, market There is also a decline in number access, and value chain position of

Table 20 : NTBs prevalent in Auto and Auto Parts (Engineering) Segment

Type of Non Imposing Segment Example Tariff Barrier Country

Imported parts have to undergo more than one type of approval, thereby making the process cumbersome. Also, all auto components being imported have to be Technical retested in Chinese laboratory for Chinese Barriers to China Auto Compulsory Certification (CCC). Interior Trade parts (dashboards, console, parts of engine compartment), safety glasses and spare parts and accessories for motor vehicles are required to be marked with CCC labels

Technical South Korea imposed burdensome South Barriers to Auto conditions like vehicle width for certification, Korea Trade registration and marking requirements

Auto parts using specialty metals cannot Technical be imported directly to the US since India Barriers to The USA Auto is not a qualifying country from where Trade specialty metal can be melted/ made into a product

102 A vehicle type-approval (VTA) process Import has prevented the import and sale of "sub- Licensing, standard" vehicles, parts, and components Quotas Malaysia Auto since January 2009. In 2013, Malaysia Restrictions and imposed import licensing on some parts Prohibitions such as body for cabs and motor vehicles

Import Licensing, Brazil introduced non automatic import Quotas Brazil Auto licenses on automobiles and auto parts. Restrictions and Prohibitions

Import Import of used car bodies and motorcycle Licensing, frames are prohibited and import licensing Quotas Thailand Auto is employed for used diesel engines with Restrictions and specific capacity requirements Prohibitions

Discriminatory Discriminatory system of taxes while Taxes and Japan Auto importing automobile and auto parts exists Additional Cost in Japan

Few auto/ auto component items have Discriminatory been removed from preference list of Taxes and EU Auto GSP (higher rate since 2012) for imports Additional Cost from India to have better leverage while negotiating the EU - India FTA

Discriminatory A special consumption tax of 37% to 130% Taxes and Turkey Auto is levied on all motor vehicles based on Additional Cost engine size

High import duties and taxes on imported Discriminatory South cars; high prices for replacement parts in Taxes and Auto Korea foreign cars; and higher after-sales service Additional Cost fees for foreign manufactured cars

China provides various forms of export- Government contingent Subsidies and Government Subsidies and China Auto support through a program for establishing Support "export bases" of automobile and automobile-parts industries in China

103 Brazil Development Bank (BNDES) Government announced loans/grants to auto component Subsidies and Brazil Auto manufacturers to help develop technology, Support modernize equipment and infrastructure

The Eco-Car programme requires auto Local Content manufacturers to adhere to minimum local Thailand Auto Requirements content requirements in purchase of capital goods to get advantage of tax exemptions

Under local content requirements for Local Content automotive industry, certain manufacturing Indonesia Auto Requirements activities for some auto parts have to be conducted in Indonesia

Chinese Government rules also pressurize US automakers to transfer the latest Technology China Auto electric car technology in exchange of Transfer green-energy subsidies and Government support in China

Source: IMaCS analysis

Rajasthan are suited for enabling The quantitative analyses, segment export competitiveness. While there level analyses and the ensuing are obvious overlaps in the sectors competitiveness framework have derived from the analyses, there are set the foundation for defining the some cases wherein the inherent Vision and Mission for exports from advantages in the sectors do not Rajasthan. This will be followed by translate into improvements in export determining measurable State export performance. Figure 33 provides the targets and highlighting interventions final position of various sectors based which shall ensure that the on the qualitative and quantitative analyses undertaken as part of the same would be met. These targets study. The framework shows the would also highlight the expected position of exports segments at a competitive position of various point in time. segments in 2022.

104 Table 21 : Recap on Segment Competitiveness Competitiveness Factors enable Export Export Performance Position Competitiveness Dimensional Stones, Marble Dimensional Stones, Marble and Granite and Granite Textiles and Readymade Gems and Jewellery garments Competitive Tourism and Hospitality Handicrafts Advantage Wool and Wool Products Carpets Tourism and Hospitality Textile and Readymade Garments Animal, Agro and Food Animal, Agro and Food products products Chemical and Allied Products Metal Potential (incl tyres) Chemical and Allied Products (including Tyres) Gems and Jewellery Engineering Engineering Plastics and Linoleum Plastics and Linoleum Vulnerable Leather and Leather Products Leather and Leather Products Drugs and Pharmaceuticals Metal Wool and Wool Products Minerals Minerals Inconspicuous IT and ITeS IT and ITeS Drug and Pharmaceuticals Source: IMaCS analysis

105 Figure 33: Export Competitiveness Framework for Rajasthan

106 4. GROWTH STRATEGIES FOR EXPORTS FROM RAJASTHAN

Based on the competitiveness of merchandise and services to at framework highlighted in the least 2.5 times by 2022 through preceding chapter, a Vision and target consolidation, diversification and has been drawn out for exports from increased value addition in primary, Rajasthan. The export target along secondary and tertiary sectors, and with the baseline scenario projections generate impactful employment have been drilled down to the sectoral opportunities.” level. These shall be contingent on OBJECTIVES AND MISSION both internal and extraneous factors. The objective will be to achieve the VISION FOR EXPORTS FROM vision for exports by meeting the set RAJASTHAN targets. The key dimensions include: “The Government of Rajasthan is • Promote cooperation and unified committed to increase the export approach to exports amongst

Figure 34 : Export Competitiveness Framework for Rajasthan – 2022

107 Table 22 : Export Target for Rajasthan (Rs. Cr.) Rajasthan’s Rajasthan’s Rajasthan’s Segments Export 2022 Export 2022 Export 2016 Baseline Target Textile and Readymade Garments 6,392 11,104 12,131 Dimensional Stones Marble, Granites and Articles of Stone 2,904 7,454 9,528 Mica etc Gems and Jewellery 5,345 10,933 14,556 Engineering 4,754 10,806 12,943 Chemical and Allied Products 4,145 7,585 10,599 (including Tyres) Handicrafts 3,343 5,946 6,520 Carpet (Durries) 569 908 1,260 Animals Agro and Food Products 3,094 4,695 9,261 Metals -Ferrous and Non-Ferrous 1,777 3,451 6,903 Plastics and Linoleums 636 640 1,106 Drugs and Pharmaceuticals 398 847 937 Minerals - Mineral fuels, Mineral Oils and Products, Bituminous 31 982 1,965 Substances, Mineral Waxes, Ores, Slags and Ash Leather and Leather Products 230 240 419 Wool and Woollens 78 119 378 Others 68 68 68 Tourism 10,236 15,181 24,939 IT/ITES 2,305 4,184 8,369

Rajasthan's Exports – Merchandise 33,764 65,779 88,571 Rajasthan's Exports – Services 12,541 19,366 33,308 Rajasthan Total Exports 46,305 85,145 1,21,879 Source: IMaCS analysis. Data inputs from Ministry of Commerce, UN Comtrade, DGCIS, and Government of Rajasthan

108 the relevant departments and dimensions. These six dimensions functions; are: • Leverage and create appropriate • Institutional Streamlining – This infrastructure to achieve targets; relates to tweaking the focus and enhancing the efficiency • Aim for global quality and of institutions with a view to standards that will ensure that streamline their functions, which the products and services from would lead to better export Rajasthan rank amongst the best; performance. • Build pipeline of skilled human • Focus on Growth and Markets – resources who can contribute to This dimension adds an element export growth from the State. of value addition and sharpens the export target growth with TARGET FOR EXPORTS focus on specific markets. Based on the Vision for exports from • Infrastructure Leverage and Rajasthan, the export target for the Strengthening – This pertains to State is projected at Rs. 1.2 lakh crore strategies that aim to leverage and covering merchandise and services. use the existing infrastructure, The detailed break-up of segment- and create new infrastructure to wise targets have been highlighted in boost export performance. Table 22. • Capacity Building – This dimension outlines the need The outlined target also implicitly hints for capacity building of human at the movement of some sectors resources to improve exports. from the potential and vulnerable segment to the competitive advantage • Facilitating Access to Finance – This element outlines the need for segment. These sectors include agro easy access to financing options and food products, chemical and at competitive pricing for the allied products (including tyres), and exporters. engineering products (Figure 35). • Export Promotion Campaign – This These emerging segments, when intervention focuses on creating holistically strengthened may make awareness about branding and the transition. promotion strategies. POLICY INTERVENTIONS TO ACHIEVE TARGETS The following section examines these individual interventions in detail. The export strategies for Rajasthan Competitive strategies have also been for meeting the targets and fulfilling suggested for strengthening individual the vision have been built on six sectors.

109 Figure 35 : Export Strengthening – 6-Pillared Measures for Rajasthan

Institutional Streamlining of land; financial assistance to The overall ecosystem in Rajasthan small medium and large scale would need to be framed in a projects; equity participation manner that propels the State to a in large projects on merit; higher export trajectory. Institutional technical consultancy for project structure comprising the associated identification and technical tie State machineries would be pivotal in up; facilitation of government this process. In Rajasthan’s context, clearances; merchant banking and the nodal bodies which shall ensure financial tie –ups; and extending fulfilment of the outlined targets are: incentives and concessions • Rajasthan State Industrial according to the policy of State Development and Investment Government and Department Corporation: RIICO is the sole of Industries. Their focus is on agency in the State that develops setting up SEZs, International land for industrial growth. The Zones (Japanese, Korean), major objectives of RIICO include Export Promotion Industrial Park site selection and acquisition and Agro Food Parks.

110 • Bureau of Investment Promotion • In addition to these, there (BIP): This is a nodal agency of are State and cluster specific the Government of Rajasthan associations, some of which are: which acts as an interface  Rajasthan Chamber of between industries and various Commerce and Industry and Government departments to its District wise chapters facilitate investments in various  Rajasthan Financial sectors of the State. BIP is in Corporation charge of investment promotion and single window clearances  Handmade in Rajasthan in the State. BIP also plays a  Rajasthan Foundation significant role in developing  Rajasthan Khadi and Village investment policies for the Industries Board (RKVIB) State. The focus is on sectors like Infrastructure, IT and ITeS, • Additionally, the Export Promotion Auto and Engineering, New Policy 2017 intends to incubate and Renewable Source of Energy, the Rajasthan Export Promotion Tourism, Healthcare, Agro and Council (REPC) that shall be Food Processing, Minerals and set-up with the participation of Ceramics, Textiles, Defence the Government, Exporters and Manufacturing, Electronic Industry in order to provide a forum Hardware and MSME. for exchange of views, sharing • Export Promotion Councils (EPC): of information and removing EPCs are autonomous non-profit hindrances and obstacles faced associations under the apex by exporters. The membership to body Federation of Indian Export the Council is proposed to be on Organizations (FIEO). There are an annual subscription basis for three EPCs with regional offices exporting units of the State. in Rajasthan to promote three of the top exports from Rajasthan The above mentioned entities shall viz. Apparel, Gems and Jewellery, together create a robust export and Handicrafts. These are ecosystem in the State. The above Apparel Export Promotion entities and activities present a variety Council, the Gem and Jewellery of options for exporters seeking export Export Promotion Council and support from the GoR. It is inevitable Export Promotion Council for for some overlap to emerge in the Handicrafts (Chapters in Jaipur, overall export promotion programs, Jodhpur). thereby adding complexity.

111 In an ideal scenario, the State, district missions, trade shows, trade fairs and segment-level entities can all and Buyers-Sellers meets. contribute unique competencies • Information and Technology to boost the export performance. Division: This division will Although export promotion activities manage systems for providing at the district level may comprise information to stakeholders, a relatively small share of overall including websites, skills and institutional support, they represent training modules. an important gateway for companies. The way to institutional streamlining The proposed REPC could operate thus is not in looking at every entity under the Department of Industries, in isolation but to collectively exploit Government of Rajasthan with the their strengths. The institutional objective of ensuring strong export structure needs to be streamlined by performance for the State. The strengthening REPC further. current structure of REPC proposed in the Export Policy of 2017 can be Rajasthan Export Promotion bolstered through: Council • Focus on merchandise and The REPC proposed under the Export services as discrete contributors Promotion Policy of Rajasthan has to exports focus on four operational areas. • Focus on quality requirements during export • Sectoral Division: This division will manage the delivery of export • Integrating technology and promotion products and services innovation to the exporting sectors. • Devising framework for impact assessment and ensuring • Regional Division: This division continuous monitoring will work with the trade and • Focus on capacity building commerce related offices located • Enhancing role of IT division in India and abroad through the Embassies / High Commissions, In order to strengthen the institutional EPCs, Exim Bank and other structure, the following new functions chambers of commerce and can be included as part of proposed industry. REPC structure:

• Marketing Division: This division • Creation of independent and fully will oversee all marketing functional department focusing activities, including trade on merchandise and services

112 exports under the proposed will also undertake continuous REPC structure monitoring of the export targets, their • Focus on quality, technology and achievements and key constraints for capacity building through creation the same on a half yearly schedule. of interlinked support functions The PMU could also strategize with the REPC and Department of • Setting up of Programme Industries for liasoning with national Management Unit to review, export bodies on issues of importance. monitor and assess the impact of export initiatives The Export Connect wing could offer critical export landscape The merchandise wing could enhance oriented support services like quality, focus on merchandise export technology, capacity building and segments by coordinating with State export financing. The Export Connect bodies, exporters, etc, while the services wing could focus on services wing could comprise of separate export. These wings could outline divisions for each of the support strategies for ensuring that targets are services. met in their respective areas. These • Quality Division shall also provide advisory services. o Enhance focus on quality The Programme Management Unit control and inspection (PMU) could integrate all the functions of the divisions of REPC. The PMU protocols

Figure 36 : Proposed REPC Structure

113 o Disseminate the key inputs to Integrated Export Promotion Portal export stakeholders – Rajasthan State Export Connect • Technology Division Portal (Raj STEP)

o This shall have linkages To supplement the institutional with the quality division, and strengthening, a one stop information will include subject matter portal for exports could be established. experts (who may also be This portal could enable exporters to industry leaders / retired improve their know-how and access personnel) who will work information pertaining to markets, with export stakeholders for finance, export promotion programs, boosting the technology and event details, etc. Advisory services innovation quotient can also be provided through the portal. o Provide pointers on value addition This portal can be directly o Enhance global competitive- administered and managed by the ness of local products / IT Division of REPC in consultation services with various EPCs. Similar initiatives in other countries such as Singapore • Capacity Building Division and EU have had a meaningful impact o Work with the National on trade. Skill Development Council In India, there are already several (NSDC), Sector Skill Council portals that aid in disseminating inputs and State level institutes to related to export landscape. These build export relevant skills in include the Federation of Indian the State Export Organizations trade portal, • Finance Wing Confederation of Indian Industry o Create / integrate export (CII) portal / informative web pages financing options in the State and EXIM Mitra, amongst others. o Disseminate key inputs on Segment specific standards are how to avail the same with also disseminated through various procedural details websites like FSSAI, etc. The EXIM Mitra portal was launched by • Branding, Promotion and Exim Bank in January 2017 as a facility Marketing

114 to ascertain potential global markets the competitiveness and then ensure and products, understand product its sustainability. One of the efficient standards across the globe, estimate ways to widen exports opportunities freight cost, credit insurance, identify is to look at diversification based on agencies providing handholding, value addition. There are two key amongst a host of other value added methods of export diversification: services. The platform has also devised an online format to enable • Horizontal diversifications, which a prospective exporter and importer takes place within the same to explore funding opportunities on sector (primary, secondary or the basis of the merits of the case. tertiary) by adding new products The portal also envisages financial in the existing export baskets inclusion by delivering information within the same sector. and facilitating financial services. • Vertical diversification, which The RajStep portal may provide entails a shift from the primary to link to access EXIM Mitra, FIEO, the secondary or tertiary sector. CII, etc portals and supplement the It entails contriving further uses information with key state specific for existing products by means of details. Rajasthan’s portal will be increased value added activities unique in terms of highlighting state such as processing, marketing or specific export landscape details, providing support to exporters in other services. local language, and highlighting state Key segment-wise strategies for specific nodal details and links to key Rajasthan have been outlined in Table institutions. 23 across the competitive segments Focus on Growth and Value based on the current markets and Addition products, the emerging markets and To expand the export basket, it is of products that may be catered to, and utmost importance to first enhance the value addition required.

115 Value Addition including Value Technology (Y/N) and Why Technology Yes. Although India has presence in Yes. these emerging product segments, technological, infrastructural and certification issues limit theirinfrastructure, technology better With export. and an system, all of which add value, India acknowledged certification could compete in these segments. Rajasthan has limited presence in the This is one area processed segment. which can be tapped. One of the global market leaders in this segment is Brazil which has grown from strength to on product diversification supported by proactive institutional structure. This will be a case of horizontal as diversification export vertical as well in the State.

Exported What may be Ready to eat food, eat Ready to Health Processed food, food and Wellness products, Organic Food Products. Organic market which is estimated at US$ 90 billion in 2015 has witnessed a CAGR of around 12% for last 14 years. Dairy and dairy products, bakery/ confectionery products, ready meals and baby food are the largest categories in the organic packaged globally food market accounting for around 50% of the total organic packaged food market. products include Other snacks, oils, dressings, etc. Current Markets) Where Emerging Markets (in addition to The EU, Canada, South Korea, Australia, New Zealand What is Exported Rice, Oil Seeds, Shrimps and Prawns, Frozen meat, Spices, Tea, Guar Gum, Sugar

Table 23: Segment-Specific Strategies for Growth and Value Addition Value 23: Segment-Specific Strategies for Growth and Table Existing Markets Where Vietnam, Vietnam, The USA, UAE, Malaysia, Iran, Bangladesh Name of Segment Agro and Agro based

116 Yes. India has presence in these Yes. product segments but lack of cutting edge technology, required testing and standardization facilities and skill set, certification restrict competitiveness of Indian players in the market. State. the in reflected is story same The One of the global market leaders in this segment is Brazil which has grown from strength to on product value addition with processing built on natural reserves. As a part of MERCOSUR trade bloc, Brazil has access to various including US and the markets the EU where it enjoys preferential tariff Marketing and promotion has rates. also received substantial focus. AssociaçãoBrasileira da Industria de RochasOrnamentais (ABIROCHAS) is promoting Made in Brazil products by developing systematic programs APEX Brazil – the Export supported by Agency. Promotion and Investment The International Mining Exhibition and the Brazilian Mining Congress together conduct EXPOSIBRAM, one of the largest mining expositions in Latin America. horizontal a case of be will This export diversification in the State. Worked and Processed Worked Granite and Marble

The EU, Egypt, South Africa, Russia, Canada Granite – Crude, roughly trimmed, cut into slabs, polished, Sandstone, Marble

China, The USA, Saudi Arabia, The UK, Sri Lanka, UAE Dimensional Stones

117 . Yes. India has a fragmented specialty Yes. chemicals industry with small scale manufacturers. Indian players can look for value addition in terms of R&D. build capabilities to need a There is through product development and innovation. Development of processes/ products which eliminate or reduce and hazardous substances, use of the focus towards green chemistry should be a priority. Similar story is echoed in Rajasthan. horizontal a case of be will This export diversification in the State leaders is global market the of One China in this segment which has grown due to focus on product diversification, and streamlined policy thrust investments. Yes. Indian players have inadequate capacity and technological capabilities both in manufacturing and R&D, which leads to limited production and low quality products. Rajasthan, with must look to emerging auto cluster, its build its capacity. horizontal a case of be will This export diversification in the State. Specialty chemicals like agrochemicals, dyes and pigments, textile chemicals, personal care ingredients, construction chemicals etc. Electronics and engineering plastics The EU, The UK and other developed economies Thailand, Indonesia, China, Japan, South Korea Organic chemicals, p-xylene, pigments and preparations, benzene, insecticides Compression- Ignition engine cars, parts of vehicles, Motorcycles, floating vessels, parts of aircrafts, parts of boilers and The USA, China, Germany, UAE, Brazil, Indonesia USA, Italy, UK, Sri Lanka, France, African countries (Vehicles) Chemical and allied products (including tyres) Engineering

118 Income tax breaks for companies with foreign investment, located in special development zones, or designated as having “high technology”; industries ‘encouraged’ Loans to from government-owned banks; Rebates on value added tax and import duties for purchases; equipment Low-priced land for State Owned Enterprises (SOEs) and companies located in special development zones; The provisiongoods and of services at below-market prices by the government and SOEs, Export rebates and Export credits to support equipment exports One of the global market leaders in this segment is China which has grown due to focus on policy thrust, R&D, innovation and infrastructure boost. The industrial policy in China has high focus manufacturing and automobile on R&D manufacturing, promotion of ‘smart’ in equipment equipment key indigenization technologiesfor of manufacturing, Several subsidy measures auto parts. These have also been undertaken. and include: 1. 2. 3. 4. 5. 6. nuclear reactors, electrical machinery and parts

119 Yes. Design development centre are Yes. required to match the latest trends and There is need for improvement demand. in technology and automation line with competitors. Greater production and export promotion activities are also needed for expansion in export market. This will be a case of horizontal as diversification export vertical as well in the State. Shenzhen in China has done exceptionally well in gems and As part of institutional jewellery. strengthening, ‘Shenzhen Gold and was established Association’ Jewellery bridge between a as serve in 1990 to government and business owners. (CJI) was ‘China Jewellery Index’ also initiated in Shenzhen to provide comprehensive national-level database gems and jewellery industry. on China’s there has been focus on Further, infrastructure development. Shuibei Jewellery Park is the centre of gems and jewellery Shenzhen’s encompassing more than industry, 2,000 jewellery companies. Shuibei Centre Trade International Jewellery Processed jewellery, Processed jewellery, coloured gems stones, pearls, synthetic stones, costume non fashion jewellery, gold jewellery and rough diamonds Middle East. Strengthen the exports to Russia and China Gold and silver cut jewellery, and polished diamonds, precious and semi precious gemstones and studded jewellery, handmade and machine made jewellery

The UAE, The US, Russia, Singapore, Hong Kong, Latin America, China, Belgium, The UK, South Africa and Israel Gems and Jewellery

120 opened in May 2004, became the first small large and for one-stop service wholesalers and retailers, hosting more than 100 local and international The Royal land jewellery shops. Jewellery Club was formed in 2009 to cater the emerging high-end jewellery market demand. For marketing and promotion, the jewelleries in Shenzhen were named in 2005. ‘China Famous Brand’ There is need for improvement Yes. There in technology and automation. brand improving the also need for is image and expanding export market. Strengthen exports of pure silk carpets China, Latin America, Europe and Africa Hand-made carpets: Hand-knotted woollen carpets, woollen Tufted carpets, Gabbe woollen carpets, Hand- made woollen durries, Staple/ synthetic carpets, Chain stitch rugs, pure silk carpets Exported to over 100 countries in the world. exporters Top are The US, The Germany, Netherlands, UAE, The UK, Australia, Belgium, Canada and Italy Carpet

121 Yes. Uplift the artisans through access Yes. to retail chains, fashion designers, etc.; improve the marketing techniques and infrastructure facilities; automation and modernized machines; reviving the blend of multipleextinct crafts; craft in a single product; participation in trade shows, exhibitions and fairs Policy thrust and improvement Yes. in infrastructure terms of design automation development, technology, and modernization. This will be a case of horizontal export diversification in the State. One of the global market leaders in this segment is China which has grown policy and due to focus on technology, product diversification. Accessories and gifts, furniture, portable lamps, wall decor, lighting fixtures, etc. Products customized to international trends Apparel, Synthetic and blended products, manmade fibre and filament manufacturing, geo textile. Strengthen knitted and woven fabric, readymade garments and other value added and specialty fabrics. China, Brazil, Argentina, South Africa Japan, Africa, South Korea Shawls and Art wares, Hand Printed and Textiles scarves, Art Metal wares, Imitation Jewelleries, Wares, Wood Zari and Zari goods, Embroidered and Crocheted Goods, Woollen goods, and Miscellaneous handicrafts Cotton-based yarns, fabrics, clothing, and household furnishings - Cotton textiles, Manmade textiles, Silk textiles, Wool and woollen textiles, Readymade

The US, The EU, The UK, Russia, Turkey, UAE, Saudi Arabia, Japan, Germany, Canada, The Netherlands, Italy and France The USA, UAE, China, The UK, Bangladesh, Germany, France, Spain, Italy and Turkey Handicrafts Textile

122 Increase spending on advertising campaigns; develop and marketing quality tourism infrastructure at tourist destinations and circuits; increase use of technology. horizontal a case of be will This export diversification in the State. Adventure tourism, Rural tourism and various other innovative tourism categories Africa, Vietnam, Philippines, South Korea, Cambodia, Indonesia garments, Jute, Coir and Handloom, knitted apparel, woven apparel, Made up articles Medical tourism, Heritage tourism, Culture tourism, Pilgrimage tourism, Meetings, Incentives, Conferences, and Events tourism The USA, The UK, Bangladesh, Sri Lanka, Canada, Germany, France, Malaysia, and Japan Tourism and Tourism hospitality

123 Infrastructure leverage and National Ayurveda Institute - strengthening Jaipur, Apparel Training and Design Centre - Jaipur, Central This dimension focuses on Wool Board - Jodhpur, Weavers leveraging and strengthening of Service Centre - Jaipur existing infrastructure for tapping markets and diversifying the export  National Level R&D Centres basket. The State of Rajasthan has - National Mustard Research already invested in export oriented institute, Bharatpur; Central infrastructure. Some of the key Sheep and Wool Research infrastructure created in the State Institute-Tonk; Camel Research have been outlined below : Institute-Bikaner; National institute of Agriculture Marketing-Jaipur  Export Promotion Industrial Parks  Export Promotion Councils / - Sitapura - Jaipur, Neemrana, Institutes - AEPC, GJEPC, FIEO, Jodhpur Centre for Development of Stones  ICDs - Jaipur, Jodhpur, Ajmer,  National Level Labs - International Hindaun City Testing Lab- Gems and Jewellery-  Product specific industrial parks- Jaipur Food Parks, Spices Parks,  National Test Centre, Ministry of Textile Parks, Carpet Park (Under MSME, GOI Implementation), Apparel park, To meet the export targets, it is Stone Park essential to adopt a two pronged  SEZs - 3 at Jaipur (2- Gems and approach of leveraging the existing Jewellery, 1 Multi Products) infrastructure, and simultaneously  Special Investment Regions creating segment-specific need based (SIRs) - 1. Khuskhera-Bhiwari- infrastructure. Neemrana 2. Jodhpur-Pali- Infrastructure Leverage Marwar Ind. Area It is important to analyze the scope  National level Institutes - National for leveraging existing infrastructure Institute of Fashion Technology so that the investment in creating (NIFT) - Jodhpur, Footwer Design needless infrastructure may be and Development Institute curtailed and appropriate investments - Jodhpur, CIPET - Jaipur, may be planned. Some of the key

124 leverage measures are outlined infrastructure such as below: warehousing (in Jodhpur) and logistics that will connect it to • The ICD at Jaipur is not adequately freight corridor. These can be utilized and may be used more leveraged wherever possible. efficiently with proper procedures and time bound activities. As a Infrastructure Strengthening result of the usage challenges Infrastructure strengthening has been at the ICD, currently, most of the explored on a segment level across exporters are exporting either two dimensions: through ports in Gujarat or Delhi. • Supply Driven Infrastructure – • Leverage common infrastructure the infrastructure that is required available in Export Promotion by the exporters in the State Industrial Park and product like warehouse, cold chain, specific industrial parks to ICDs, etc. ensure that small units do not • Demand Driven Infrastructure – invest in replicating infrastructrue the infrastructure that is required but rather invest in boosting by the destination market like production and quality. design institutes, quality labs, • Utilize the exisitng Testing testing labs, etc. Facilities, especially in gems and The key requisite infrastructure has jewellery. Currently, for quality been outlined segment-wise in Table checks, gems and jewellery items 24 and Table 25. This has been are sent to Mumbai, which leads done for traditional segments, as well to considerable loss of time. as non-traditional segments like • The infrastructure developed engineering, chemical and allied by DMIC will include exports products, etc.

125 Utilities Strong Strong water, power, road and rail network needs to be improved in the State. This should lead to the overall logistics of the State being strengthened Processing Technology Infrastructure / Fruits and vege- tables: preserved, candied, glazed and crystallised and vege- fruits tables; juices, jams, purees,jellies, soups, powders, dehydrated flakes, vegetables, shreds and ready- to-eat curries Beverages: fruit- based, cereal- based Dairy: liquid milk, curd, yoghurt, processed flavoured cheese, cottage cheese, ice cream, milk-based sweets. • • • Multimodal Logistics Hub Multimodal transport (also known as combined transport) is the transportation of goods under a single contract, but performed with at least two different means of transport. multi modal logistics A hubs should be promoted around appropriate areas Jodhpur, like Udaipur, provide so as to etc easy and convenient transport facility to all industrialists and exporters in the region for transferring products to various takers in ports and off Gujarat, Maharashtra, Delhi, etc. Depots Inland Container Overall ICDs are currently present in Jaipur, Ajmer, Jodhpur, As Hindaun City. the stated prior, ICDs have to be utilized effectively and efficiently. Engineering Auto is a fast growing segment near Bhiwadi and Neemrana and has high prospect setting up with the Japanese city of and the upcoming ICD in Korean city. area will give the requisite fillip. Warehouse Cold Chain Infrastructure Table 24 : Strategy for Strengthening Supply Side Infrastructure – Segment-Wise Table Rajasthan is a major producer of Aloe vera, Guava, spices, Jeera, Amla and vegetables, all Keenu, of which can be made into export commodities commanding high export income. The production of aloe vera is very high and can be used to attract pharma companies. Rajasthan is the second largest producer of spices after Kerala. Jhalawar - Kota area has good production of mandarin to boost the export However, the potential and ensure that products do not get wasted, network of cold chain infrastructure and warehouses should be created. • • • • • Segments Agro and Agro based

126 Grain processing milling sector, – oil rice, pulse milling and flour milling sectors Food processing equipment: canning, dairy and food processing, specialty processing, packaging, frozen food / refrigeration and thermo- processing. Spice paste, etc Need for mechanized mining. Processing infrastructure to support cutting, followed by application of a conclude with a finish,second cutting or and shaping step • • • • • G&J Establish units SME-DTA flatted for near SEZ reducing logistics and ease costs of procurement supplies and semi- processed items. Textile There is requirement (ICDs) Dry ports of at Bhilwara and Udaipur. Dimensional Dimensional stones quality require facilities both on- storage well as as site post processing. The same need to be created. Not applicable Dimensional Dimensional stones

127 Investment to ensure specialty chemicals Investment to herald PCPIR in Rajasthan Entire value chain of synthetics Value added and specialty fabrics Fabric processing set-ups for all kind of natural and synthetic textiles Textiles Technical Apparel • • Gem Establish a bourse in Jaipur which has customs, banks, certification, dealing / auction rooms and other facilities in a flatted must complex. It be promoted as a global body • • • • • Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Chemical and Allied Products (including Tyres) Gems and Jewellery Textile

128 Testing Centres Testing Not applicable Marble Granite Testing laboratory to check various parameters like hardness, shock, modulus rapture, etc. National Level Labs and Lab for Testing International Gems and Jewellery exist in look at These must Jaipur. key advisoryservices to offering exporters. There is a need to have a muti key sector testing facility for export orentied products like texile, handicrafts and carpets. Quality Labs Quality labs to test quality of product based product of quality test to labs Quality HACCP, USFDA, FSSAI, on standards like etc based product of quality test to labs Quality on international certification (Conformité Européene) when certifications likeexported to the EU. CE Gem testing labs which certify the quality and grade of gemstones is required in the State. Product specific qualityestablished in the State. labs must be Design Labs Not applicable feed the processing centres for To dimensional stones with international designs and usage designs like kitchen countertops, location specific fireplaces, etc. floor, bathroom vanity, Indian Institute of Gems and Jewellery and Gems project of a Jaipur, (IIGJ), Promotion Council Jewellery Export the Government of with support from Rajasthan is an institute for the Gems and Jewellery sector with focus on design, technology and management. advisory services to key may offer IIGJ exporters in the sector. be Carpet design institute needs to This may be established in the State. based out of Jaipur but also provide services in other areas like Barmer, Bagru, etc. Ajmer, Indian Institute of Crafts and Design IICD must (IICD) is based in Jaipur. advisory services to key look at offering exporters in the sector. textile design labs In addition to NIFT, need to be established in the State. Table 25 : Strategy for Strengthening Demand Side Infrastructure – Segment-Wise Table Segments Agro and Agro based Dimensional Stones Gems and Jewellery Carpet Handicrafts Textile Source: Primary interactions, , Secondary sources, IMaCS analysis

129 Standards, Regulations and Quality body to the Central Government which notifies commodities which will Various quality requirements need be subject to quality control and/ or to be fulfilled by the exporters from inspection prior to export, establishes the State. Many export destinations quality standards for such notified prescribe export specifications commodities, and specifies the type which need to be adhered to. It is of quality control and / or inspection to the responsibility of stakeholders to be applied to such commodities. ensure that these standards are met. The EIC inspects products with In India the Export Inspection Council specific requirements for each product (EIC) is responsible for Quality Control category. Snapshot of the same is and Inspection. EIC is an advisory outlined in Table 26.

Table 26 : Quality Requirements Product Brief Snapshot of Requirements Organic Organic certification required. Products As per DGFT Notification No-21/2002-07 dated 26 December 2002, no Gems and import/ export of rough diamonds shall be permitted unless the shipment is Jewellery accompanied by Kimberley Process Certificate required under the procedure specified by the Gems and Jewellery Export Promotion Council. The exporters will inform ‘region and place of cultivation’ so as to confirm the origin of Rice through an affidavit. Export Inspection Agencies will attest the Cereal Certificate of Authenticity based on the verification / inspection and testing carried out by them. Fishery and All EU approved fish and fishery products establishments are required to Aquaculture obtain Health Certificate from EIC. Products Dimensional CE certification when exporting to the European Union. stones Term "cotton" is exclusively reserved for the fibre obtained from the bolls of the cotton plant (Gossypium). The term "cotton linen union" is reserved for products having a pure cotton warp and a pure flax weft, in which the Cotton percentage of flax accounts for a minimum 40% of the total weight of the fabric. In the textile’s label, this name must be accompanied by the composition specification. Terms "virgin wool" or "fleece wool" are only used for products composed exclusively of a fibre which: has not previously been part of a finished Wool product, has not been subjected to any spinning and/or felting processes other than those required in the manufacture of the cloth, and has not been damaged by treatment or use.

130 Critical inputs on export including Occupational Standards (NOS) of the the documentation, time lines, cost Sector Skill Councils (SSC). involved, etc should be disseminated Sector Skill Councils are set up as to concerned exporters through the autonomous industry-led bodies by portal by REPC. All the details can NSDC. They create Occupational be hosted as one-click icon on portal. Standards and Qualification Bodies, Online help / call centre system develop competency framework, can also be established to clarify conduct 'Train the Trainer' programs, doubts. Advisory support can also be organise skill gap studies, and assess extended to first time exporters. One and certify trainees on the curriculum day training and awareness drive aligned to the NOS12. can also be conducted at the district The NOS sets out measurable industry centres. performance outcomes towards which Capacity Building an individual is expected to work in a given occupation or job role. These One of the most important requirement are valuable tools to be used as to ensure that export growth targets benchmarks for qualifications as well for the State are met is to ensure the as for defining roles at work. The NOS availability of skilled and productive are used to describe good practice human resources across various in particular areas of work, set out a export segments. The capacity statement of competence, provide building initiatives can be undertaken resource for a variety of workforce across two areas: management and quality control tools, • Adhering to the National Skill offer a framework for training and Framework development, and form the basis of all qualification frameworks. • Focused skill development through trade facilitation centres The NOS are national because they can be used in any part of the country Adhering to National Skill where these functions are carried out. Framework The NOS are occupational because There is an evolving National Skill they describe the performance Framework in India that looks at required of an individual when carrying standardizing all skill development out functions in the workplace, i.e. in initiatives in the country. These their occupation. NOS are standards standards are set by the National because they are statements of

12Source: Ministry of Skill Development and Entrepreneurship

131 effective performance which have standards and processes which are been agreed by a representative aligned to the NOS. This stability in the sample of employers and other key supply of personnel will pave the way stakeholders and approved by the for initiatives that can look at further India NOS Panel13. strengthening of export performance. The key export segments in Rajasthan In fact, these centres may also require immediate skill development leverage resources from the Centre efforts, and it is imperative that the for WTO Studies which conducts training delivered is adhered to the programmes on several export related NOS that are developed by various focus areas like Trade Facilitation, SSCs. This is critical in the export Technology Transfer, Trade and context because the NOS are formed Investment Policies, Agreement on by incorporating requisite international Sanitary and Phytosanitary Measures, and national standards of performance Anti-dumping, Safeguards, etc. which are necessary when skilling Fiscal Support for exports. These reflect industry The draft Export Promotion Policy demands, and are dynamic in nature 2017 has already outlined various which ensures that changing needs measures for fiscal support, which are also met. includes: Focused Skill Development through  Reimbursement of freight @ Rs. Trade Facilitation Centres 2000/- per container (TEU) subject The objective of this intervention to maximum Rs 1.50 lakh p.a. per is to enhance the skill level of key exporting unit on exports through personnel involved in export across ICDs being run by Rajasthan the key segments. One of the models State Small Scale Industries that can be adopted to ensure this Corporation (RAJSICO). is the Trade Specialization Model (TSM). The TSM will look at building  Reimbursement of handling the key skill in areas where they are charges on precious cargo of Gem inadequate, thereby enabling an and Jewellery export shipments appropriately skilled human resource effected from Air Cargo Complex pipeline – especially in domains (ACC) Jaipur Air Port up to Rs. where export is critical. For this 3000/- subject to the maximum purpose, Trade Specialization Centres of Rs 1.50 lakh per annum per (TSC) can initiate large scale skill unit, whichever is less on each building processes and adhere to the shipment.

13Source: NSDC

132 Table 27 : Trade Specialization Model Trade Specialization Brief Model Build skills in key export priority areas of tourism and hospitality, textile, agro and agro based processing, gems and Objective jewellery, handicrafts, carpets, dimensional stones, chemical and allied products (including tyres), and engineering Tourism and Hospitality • Guides • Housekeeping • Property maintenance • Tour planning • Overall language, communication and interpersonal skills Textile • Quality controls • Design • Production management • Finishing

Agro and Agro based Processing • Formulation • International food standards Indicative • Quality control Target Areas • Processing technologies

Gems and Jewellery • Designing • Processing of gems • Finishing • Market scanning • Testing and Quality • Marketing

Handicrafts and Carpets • Designing • Marketing • Design • Market scanning • Testing and Quality

133 Chemical and Allied products (including Tyres) • Value added products production • International process control drivers • Treatment and cleaning • Research • Production • Quality control

Engineering • OEM requirement elicitation • Designing • Prototyping • Testing • Production • Quality control

Dimensional Stones • Processing • Finishing • Certifying requirements • Testing • Quality control

General Export Areas • Export financing • Documentation • International finance management like hedging, options, etc • Standards involved • Quality aspects • Trade agreements and impact • Export markets and key features, etc Locations Around the respective segment hubs • Identify SSC partner institutes that can collaborate with the SSC to host the courses for the priority areas • SSC to identify the specialized equipment required for such trades and share with the institute • Such institutes, as well as equipment to be hosted, should Process be identifed based on key demand areas • These institutes would serve as co-hubs where other institutes / ITIs in the region can make use of equipment for lab-work and modules requiring exposure to specialized equipment.

134 • Existing and new courses can continue to be offered in the institutes. Specific modules /lab-work requiring use of specialized equipment and courses can be offered by TSCs on a ‘transfer of credit’ basis. Thus, the student will continue to study at his institute of choice but be able to access specialized courses/ modules/equipment at TSC on a ‘transfer of credit’ basis Control • All content and assessment to be in line with the respective SSC Anticipated • Skilled HR available in priority areas impact • Industry ready workforce • Geographically endemic skills built

 Reimbursement of premium paid Branding and Export Promotion for ECGC insurance. Campaign

 The Government will provide With Resurgent Rajasthan - 2015, fund based support to the Rajasthan has forayed into campaigns REPC, Exporters Associations of to promote the State and its resources Rajasthan/EPCs/National level for investment purposes. This initiative Export Associations for organizing is in tandem with the national level international export trade fairs policy interventions such as Make for the State units. The support in India and various such initiatives will be upto 50% of the total cost organized to attract investments into subject to the maximum of Rs. 50 India and position India as a global Lakh. destination for manufacturing and export.  Refund of Certification Charges: The government shall provide For a land-locked State like Rajasthan reimbursement to the exporting it is difficult to attract investment in units of the State for expenditure export units with alternatives aplenty incurred for compulsory markings for an investor to choose from. such as Conformity European Established destinations such as (CE), China Compulsory Gujarat, Maharashtra, Tamil Nadu Certificates (CCC) upto the limit and Karnataka are riding on the of 50% of expenses subject to a advantages of infrastructure and maximum of Rs. 2 Lakh per unit policy support. Rajasthan needs to per annum. effectively brand itself and utilize the

135 resources to widen its prospects in whole. Sector specific initiatives are the coming decade. Some of the key currently missing except for a few initiatives that may be incubated in sectors such as Auto, Textile and IT. addition to the ongoing initiatives are: From the State’s perspective, E-commerce Leverage: Online the Government of Rajasthan in opportunities in traditionally strong partnership with the Export Promotion sectors such as gems and jewellery, Councils, Exim Bank and CII, could handicrafts, carpets, etc are yet to consider showcasing opportunities be tapped completely. While there that exist in Rajasthan on the export are a significant number of fairs and front. Individual company brands also exhibitions that the State artisans are need to be created. The Government exposed to, access through online can encourage development of platform can also be considered. The brands by providing incentives for important step is to create awareness brand-development expenditure with among SMEs regarding market appropriate caps. place and customer relationship management. Effective marketing Promotion of Clusters: For communications and brand building segments like carpets, handicrafts, in this space is essential in utilizing gems and jewellery, agro and food the channel to the fullest. Connecting products, the entrepreneurs exist at SMEs directly to their markets and the grass root level and at times work customers can aid the players to adapt in silos. Cluster formation must be to the changing market dynamics encouraged by REPC and EPCs so quickly. that common infrastructure may be created and utilized so that products Branding: Brand-building and could also get integrated. This can promotion is important for building also help facilitate access to finance long term export attractiveness and, and usher formalization of segments. can be seen in three dimensions - National Level initiatives, State International Event Participation Level initiatives, and Product level Fund: Various market development i.e. individual company brands. assistance schemes are initiated The Government of India has been on a state and national level where running the “Make-in-India” brand entrepreneurs get funding for promotion through the India Brand participating in trade fairs. These Equity Foundation, a PPP Initiative initiatives have been proven to with CII, for the past few years now. assist exporters for export promotion IBEF seeks to act as a forum for brand activities. State specific schemes vision development for India Inc as a for sectors such as Textile, Agro

136 and Food, Gem and Jewellery, and Facilitating Access to Finance: Handicrafts can be initiated by the Support from Exim Bank local body of the respective EPCs in Rajasthan. The Draft Export Policy Several flagship programmes of already sets the course for this. Exim Bank, such as Lines of Credit, However, implementation needs to be and Buyer’s Credit under NEIA made segment specific. The Export (Box 9) can help propel medium and Promotion Councils in the State long term exports from the State, and can also work with the Department create export opportunities for Indian of Commerce to develop their international campaign. companies.

Box 9 :Exim Bank’s Flagship Financing Programmes Loans to Export Oriented Units: The Bank offers a number of financing programmes for Export Oriented Units (EOUs), importers and for companies making overseas investments. The financing programmes cater to the term loan requirements of Indian exporters for financing their new project, expansion, modernization, purchase of equipment, R&D, overseas investments and also the working capital requirements. Lines of Credit: The Government of India (GOI), in 2003-04, formulated the Indian Development and Economic Assistance Scheme [IDEAS – administered by the Department of Economic Affairs (DEA), Ministry of Finance (MOF)] with the objective of sharing India’s development experience through capacity building and skills transfer, trade, and infrastructure development, by extending concessional Lines of Credit (LOCs) routed through Exim Bank, to developing partner countries, towards creating socio-economic benefits in the partner country. These LOCs facilitate import of project-related equipment and services from India by such partner countries on deferred credit terms. Project Exports: Exim Bank plays a pivotal role in promoting and financing Indian companies in execution of projects. Towards this end, the Bank extends funded and non-funded facilities for overseas industrial turnkey projects, civil construction contracts, supplies as well as technical and consultancy service contracts. Indian companies have implemented numerous projects, spanning various sectors, with support from Exim Bank. These projects, in turn, facilitate and support infrastructure development in

137 host countries, thereby contributing to the overall development process in the region. Buyer’s Credit under NEIA: Exim Bank’s strong emphasis on increasing project exports from India has been enhanced with the introduction of the Buyer's Credit under GOI’s National Export Insurance Account (BC-NEIA) program. BC-NEIA is a unique financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters and serves as an effective market entry tool to traditional as well as new markets in developing countries, which need deferred credit on medium or long term basis. At present, a positive list of 46 countries has been identified for which Indian exporters can avail of Buyer’s Credit under NEIA. The list could be suitably expanded / modified on receipt of credit requests for projects from other countries, as has been done in the past.

Lines of Credit (LOC) for exporting high-value machinery, labour, expertise, and technology, Benefits from the LOC program can especially since growth in global accrue to exporters from Rajasthan in merchandise exports remained below several key areas. For example, in the 3% for the fourth consecutive year in cement sector, Exim Bank has several 2016. operative LOCs in the countries of Djibouti, DR Congo, Central African Overseas Investment Finance (OIF) Republic, and the Republic Of Congo. While the State has substantial Exporters from the State can tap technology-intensive exports, it will such opportunities. In fact, Rajasthan need to move up the ladder in terms is best placed to take advantage of of technology. Since investment such opportunities as the State is in R&D has high gestation period, among the top producers of cement in the OIF programme of the Bank India. can help companies get access to high technology by way of inorganic Under the LOC program, several growth through the mergers and countries also seek capital goods acquisition route overseas. Exporters imports, which can be supplied by in Rajasthan can also achieve vertical the exporters from Rajasthan. Project integration through their overseas exports from the State can also be investments which will improve their enhanced through the LOC program. efficiency and margins. Project exports are vital conduits

138 Buyer’s Credit under NEIA the State. However, the scope of these exports is fairly limited as the Enterprises involved in large scale developing countries are the major export infrastructure projects in the markets for India's project exports, energy, resources and port sectors and these countries demand medium- continue to look at the Export Credit to long-term credits. With the BC-NEIA Agencies to supplement and facilitate product, project exporters from the finance. Exports of projects and State can venture into new markets services can be broadly categorized and help diversify the exports. into (i) civil construction projects, (ii) turnkey projects, (iii) consultancy IMPACT ON EMPLOYMENT AND services, and (iv) supplies, primarily JOB CREATION by way of capital goods and industrial The outlined export targets for the manufactures. various segments have an impact As noted earlier, there is substantial on the employment potential of the potential for engineering exports from State. The overall export employment

Table 28 : Export Employment for Rajasthan: 2016-2022 Export Export Incremental Rajasthan Export Segments Employment Employment (2022 - 2016) 2016 2022 Agri and Allied 808,597 1,255,120 446,524 Textile and Readymade Garments 385,646 669,977 284,331 Chemical and Allied Products (incl Tyres) 66,047 119,835 53,788 Engineering 313,388 681,078 367,690 Drugs and Pharmaceuticals 23,314 47,957 24,642 Plastics, Linoleums and Rubber 58,934 68,156 9,222 Metals -Ferrous and Non-ferrous 100,401 122,818 22,417 Animals Agro and Food Products 200,689 311,514 110,825 Leather and Leather Products 17,039 19,272 2,233 Gem and Jewellery 56,634 112,737 56,103 Minerals and Dimensional Stones 315,257 758,183 442,926 Carpets, Handicrafts, Wool and Woollens 50,608 83,245 32,636 Manufacturing 1,587,959 2,994,773 1,406,814 Tourism 679,874 1,035,413 355,539 IT/ITES 30,000 54,062 24,062 Services 709,874 1,089,475 379,601 Total 3,106,429 5,339,368 2,232,939

Source: IMaCS analysis, Employment and Unemployment Survey, ASI, Exim Bank

139 in Rajasthan for 2016-2022 has been Services (Figure 37). In terms of sectors, depicted in Table 28. The export the competitive segments of tourism, employment for the State in 2016 was dimensional stones, engineering, about 3.1 million and this is expected textile, agro and gems and jewellery to increase to about 5.3 million by are expected to show significant 2022, in line with the increased export increase in export employment from targets envisaged for Rajasthan. The 2016 to 2022. incremental employment generated during the said time period is about 2.2 ROLE OF STAKEHOLDERS million of which textiles, engineering In the export landscape of the State, and dimensional stones account there are institutional as well as for significant share in addition to non-institutional stakeholders who significant contribution from emerging contribute to the export performance. sectors. In light of the vision, targets and In terms of economic structure, proposed interventions, the role of around 75% of export employment will key stakeholders has been reiterated be contributed by Manufacturing and in Table 29.

Figure 37 : Sectoral Export Employment 2016 and 2022

Source: IMaCS analysis, Employment and Unemployment Survey, ASI, Exim Bank

140 Table 29 : Role of Key Stakeholders

Key Stakeholders Key Role • Formulate actionable trade policy and review the same periodically in light of various FTAs, NTBs, etc in consultation with the State Government. • Develop, Disseminate and Monitor State specific export Central Government – data. Ministry of Commerce, • Provide assistance in capacity building of units through DGCIS, DGFT. EPCs. • Collaborate with the State and identify specific export opportunity areas and strategies. • Provide assistance in mapping of export infrastructure and debottlenecking of supply related constraints. • Monitor the State's Performance on export targets. • Assess impact of various State/sector specific export policies. Department of Industries, • Review of existing bi-lateral/multi-lateral agreements and State Government its impact on Rajasthan. Provide regular update of this to the Ministry of Commerce and Industry. • Provide assistance in setting up of new centres / extension centres / campuses or branches of R&D institutes having relevance for export. • Liaison with the National Committee on Trade Facilitation(NCTF) on relevant issues. • Liaison with the Council for Trade and Development under the Ministry of Commerce to map out the States’ infrastructure requirements and identify key gaps. • Offer single window clearance for fiscal support in consultation with RIICO and BIP. • Facilitate the establishment of State Level Export Advisory Committee. REPC • Undertake regular impact assessment in consultation with the Deptt. Of Industries • Facilitate training in Export Documentation and Awareness. • Publish State Exporters’ Directory. • Facilitate setting up of offices of different product specific EPCs in the State • Map export infrastructure in the State to actual requirements and identify gaps • Host and maintain export portal.

141 • Technical consultancy for project identification and technical tie up • Facilitate government clearances RIICO • Merchant banking and financial tie–ups for access to finance • Provide support to REPC on all matters of export • Continue site selection and acquisition of land • Continue promotion and development of respective segments • Work closely with REPC on export related issues and EPCs concerns • Work closely with exporters in skill training • Promote clusters development with assistance from various Central and State specific initiatives • Share destination specific issues with REPC • Share export and import data for policy formulation Exporters • Participate in impact assessment studies • Enhance awareness on various schemes and fiscal benefits • Leverage existing infrastructure for training • EPC to actively engage with NSDC for training and SSC Skill providers for certification • Focus on formal assessments and certifications The above stakeholders must that the State’s exports become holistically enhance the export more competitive at the national and culture in Rajasthan, implement the international level. suggested interventions and ensure

142 Annexure

Generic NTBs prevalent in all Segments Type of Non Imposing Segment Example Tariff Barrier Country Correct packing, marking, and labelling Technical are critical for customs clearance Barriers to Japan All segments in Japan. All imported products and Trade shipping documents are required to show metric weights and measures. Most of the States of America have Procedural enacted their own administrative Complications procedures which govern the adoption The USA All segments and of technical regulations and conformity, Documentation complicating the procedures while exporting to the USA Procedural New GSP rule requires exporters to Complications self-certify the origin of content while The EU All segments and exporting to the EU. Any error can lead Documentation to disqualification of benefits Strict intellectual property regime would impact certain high-technology items, IPR The EU All segments where we are aspiring to be an export requirements base, since technology transfer would be impacted Japan maintains a strong intellectual property rights (IPR) regime. Companies IPR doing business in Japan are encouraged Japan All segments requirements to be clear about all rights and obligations with respect to IPR in any trading or licensing agreements. USA protects a varied list of products under its IPR regime ranging from industrial designs, circuit designs, IPR trademarks etc. This results in import The USA All segments requirements user fees and excessive invoicing requirements on importers, which add to the costs in a similar way to tariffs - e.g.: Merchandise Processing Fee (MPF) Source: IMaCS analysis

143 RECENT OCCASIONAL PAPERS OP No. Title 115. Strengthening R & D Capabilities in India 116. CIS Region: A Study of India’s Trade and Investment Potential 117. Indian Chemical Industry: A Sector Study 118. Trade and Environment: A Theoretical and Empirical Analysis 119. Indian Pharmaceutical Industry : Surging Globally 120. Regional Trade Agreements: Gateway to Global Trade 121. Knowledge Process Outsourcing: Emerging Opportunities for India 122. Indian Mineral Sector and its Export Potential 123. SAARC: An Emerging Trade Bloc 124. Indian Capital Goods Industry - A Sector Study 125. Financial Liberalization and Its Distributional Consequences 126. ECOWAS: A Study of India’s Trade and Investment Potential 127. Indian Textile and Clothing Industry in Global Context: Salient Features and Issues 128. Fair Trade : Fair Way of Enhancing Export Value 129. Indian Automotive Industry: At The Crossroads 130. CARICOM : A Gateway to the America 131. IBSA : Enhancing Economic Cooperation Across Continents 132. MSMEs and Globalisation: Analysis of Institutional Support System in India and In Select Countries 133. International Trade, Finance and Money: Essays in Uneven Development 134. Sikkim: Export Potential and Prospects 135. Mizoram: Export Potential and Prospects 136. Floriculture: A Sector Study 137. Biotechnology Industry in India: Opportunities for Growth 138. Indian Gems and Jewellery: A Sector Study 139. SADC: A Study of India’s Trade and Investment Potential 140. Innovation, Imitation and North South Trade: Economic Theory and Policy 141. Comesa (Common Market for Eastern and Southern Africa): A Study of India’s Trade and Investment Potential 142. Indian Shipping Industry: A Catalyst for Growth 143. New Renewable : Harnessing the Potential 144. Caribbean Community (Caricom ): A Study of India’s Trade and Investment Potential 145. West African Region: A Study of India’s Trade and Investment Potential 146. India’s Trade and Investment Relations with LDCs (Least Developed Countries): Harnessing Synergies 147. Indian Electronic Industry : Perspectives and Strategies 148. Export Potential of Indian Plantation Sector: Prospects and Challenges

144 149. Mercosur : A Study of India’s Trade and Investment Potential 150. Openness and Growth of the Indian Economy: An Empirical Analysis 151. The Commonwealth: Promoting a Shared Vision on Trade and Investment 152. Southern African Development Community (SADC): A Study of India’s Trade and Investment Potential 153. Strategic Development of MSMEs: Comparison of Policy Framework and Institutional Support Systems in India and Select Countries 154. Indian Chemical Industry : Exploring Global Demand 155. Technological Interventions In Indian Agriculture for Enhancement of Crop Productivity 156. Exports of Services and Offshore Outsourcing: An Empirical Investigation in the Indian Context 157. Indian Ocean Rim Association for Regional Co-operation (IOR-ARC): A Study of India’s Trade and Investment Potential 158. West Africa: A Study of India’s Trade and Investment Potential 159. The Effects of Financial Openness: An Assessment of the Indian Experience 160. Comparison of Labour Laws: Select Countries 161. India’s Trade and Investment Relations with Cambodia, Lao PDR, Myanmar, Vietnam (CLMV): Enhancing Economic Cooperation 162. Indian Horticulture-Imperatives to Enhance Trade from India 163. India’s Trade and Investment Relations with Gulf Cooperation Council (GCC): Strengthening Economic Ties 164. India’s Hi-Tech Exports: Potential Markets and Key Policy Interventions 165. Outward Direct Investment from India: Trends, Objectives and Policy Perspectives 166. East African Community (EAC): A Study of India’s Trade and Investment Potential 167. Trade Liberalization, Product Variety and Growth 168. Research & Development in BRICS: An Insight 169. Indian Capital Goods Industry: A Sector Study 170. Bangladesh: A Study of India’s Trade and Investment Potential 171. Indian Electronic Goods Industry: Neutralizing Trade Deficit with China 172. Indian Steel Industry: Export Prospects 173. Value Addition Chains and Trade in Manufactured Commodities in South-East Asia 174. Potential for Trade of Organic Products from India 175. Multilateral Development Bank- Funded Project: Trends and Opportunities for Indian Exports 176. Indian Pharmaceutical Industry: Challenges and Prospects 177. Migration and Remittances in India 178. Technical Progress and Structural Change: The Roles of Demand and Supply in Economic Growth 179. Inter-linkages between Exports and Employment in India 180. India’s Engagements with CLMV: Gateway to ASEAN Markets

145 EXIM BANK’S MAJOR PROGRAMMES Bank’s Major Programmes

FINANCE FOR EXPORT VALUE-ADDED EXPORT CREDIT ORIENTED UNITS SERVICES

PROJECTS, PRODUCTS TERM LOANS EXPORT MARKETING & SERVICES SERVICES

PRE-SHIPMENT CREDIT WORKING CAPITAL MULTILATERAL FUNDED PROJECTS SUPPLIERS / BUYERS’ CREDIT

EXPORT MARKETING

LINES OF CREDIT JOINT VENTURE FACILITATION

BUYER’S CREDIT EXPORT PRODUCT UNDER NEIA DEVELOPMENT

CONSULTANCY SUPPORT EQUIPMENT FINANCE EXPORT FACILITATION

GUARANTEES AND L/CS WORKSHOPS & SEMINARS OVERSEAS INVESTMENT FINANCE

INFORMATION & ADVISORY SERVICES IMPORT FINANCE

GUARANTEES & L/CS

146 EXPORT-IMPORT BANK OF INDIA HEAD OFFICE Centre One Building, 21st Floor, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005. Phone: (91 22) 22172600 Fax : (91 22) 22182572 E-mail : [email protected] Website: www.eximbankindia.in LONDON BRANCH 5th Floor, 35 King Street, London EC2V 8BB United Kingdom Phone : (0044) 20 77969040 Fax : (0044) 20 76000936 E-Mail :[email protected]

DOMESTIC OFFICES OVERSEAS OFFICES Ahmedabad Abidjan Sakar II, 1st Floor, 5th Floor, Azur Building, Next to Ellisbridge Shopping Centre, Ellisbridge P. O., 18-Docteur Crozet Road, Plateau, Ahmedabad 380 006 Phone : (91 79) 26576852/26576843 Abidjan, Côte d’Ivoire Fax : (91 79) 26577696 Phone : (225) 20 24 29 51 E-mail : [email protected] Mobile : (225) 79707149 Bangalore Fax : (225) 20 24 29 50 Ramanashree Arcade, 4th Floor, Email : [email protected] 18, M. G. Road, Bangalore 560 001 Addis Ababa Phone : (91 80) 25585755/25589101-04 Bole Kifle Ketema, Kebele - 19, (03/05), Fax : (91 80) 25589107 House No. 015-B, E-mail : [email protected] Addis Ababa, Ethiopia. Chandigarh Phone : (251 116) 630079 C- 213, Elante offices, Industrial Area phase 1, Fax : (251 116) 610170 Chandigarh 160 031 E-mail : [email protected] Phone : (91 172) 4629171-73 Fax : (91 172) 4629175 Dubai E-mail : [email protected] Level 5, Tenancy 1B, Chennai Gate Precinct Building No. 3, Overseas Towers, Dubai International Financial Centre, 4th and 5th Floor, 756-L, Anna Salai, PO Box No. 506541, Chennai 600 002 Phone : (91 44) 28522830/31 Dubai, UAE. Fax : (91 44) 28522832 Phone : (971 4) 3637462 E-mail : [email protected] Fax : (971 4) 3637461 Guwahati E-mail : [email protected] NEDFi House, 4th Floor, GS Road, Johannesburg Dispur, Guwahati 781 006 Phone : (91 361) 2237607/609 2nd Floor, Sandton City Twin Towers East, Fax : (91 361) 2237701 Sandhurst Ext. 3, Sandton 2196, E-mail : [email protected] Johannesburg, Hyderabad South Africa. Golden Edifice, 2nd Floor, 6-3-639/640, Phone : (27 11) 3265103/13 Raj Bhavan Road, Khairatabad Circle, Fax : (27 11) 7844511 Hyderabad 500 004 E-mail : [email protected] Phone : (91 40) 23307816-21 Fax : (91 40) 23317843 Singapore E-mail : [email protected] 20, Collyer Quay, #10-02, Singapore 049319. Kolkata Phone : (65) 65326464 Vanijya Bhawan, 4th Floor, Fax : (65) 65352131 (International Trade Facilitation Centre), E-mail : [email protected] 1/1 Wood Street, Kolkata 700 016 Phone : (91 33) 22833419/20 Washington D.C. Fax : (91 33) 22891727 1750 Pennsylvania Avenue NW, E-mail : [email protected] Suite 1202, Washington D.C. 20006, New Delhi United States of America. Statesman House, Ground Floor, Phone : (1 202) 223 3238 148, Barakhamba Road, New Delhi 110 001. Fax : (1 202) 785 8487 Phone : (91 11) 23474800 E-mail : [email protected] Fax : (91 11) 23322758/23321719 Yangon E-mail : [email protected] House No. 54/A, Ground Floor, Boyarnyunt Street, Pune Dagon Township, Yangon, Myanmar 44, Shankarseth Road, Pune 411 037. Phone : (91 20) 26403000 Phone : (95) 1389520 Fax : (91 20) 26458846 Mobile : (95) 1389520 E-mail : [email protected] Email : [email protected]

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