At present Karnataka contributes to 7 per cent of the country's total export basket and the new policy aims to increase the state's share to 15 per cent by 2007. The draft new export policy stipulates that Karnataka should achieve exports worth $12.07 billion in 2007 from the level of $3.45 billion achieved in 2000-01. To achieve this ambitious target, the average compounded annual growth rate required is 24 per cent. During the Ninth Plan (1997-2002), exports from Karnataka grew from Rs 8,432 crore in 1997-98 to over Rs 20,000 crore in 2001-02. The average annual growth rate has been approximately 15 per cent.
The policy also proposes to set up an export promotion board by restructuring Vishveshvarya Industrial Trade Centre (VITC). The board will be the nodal agency to guide and provide assistance to exporters as well as facilitate in obtaining clearances from regulatory departments and resolving operational problems of exporters in the state. VITC, at present, is the nodal agency for promotion of exports of all products from the State.
Besides the board, the policy also plans to set up district-level export promotion committees (DLEPC). The committee will be monitored by a sub-committee of the state-level export promotion council (SLEPC) chaired by the commissioner for industrial development and director of industries and commerce. The SLEPC is chaired by the Chief Minister.
The new policy also proposes to establish an e-governance facility at VITC and connecting six districts - Bangalore, Mangalore, Mysore, Belgaum, Gulbarga and Hubli to start with. The policy also proposes to upgrade the existing VITC trade portal to a full-fledged B2B exchange, which would facilitate smaller units in the state to take up online trading activity.
Apart from establishing an exclusive special economic zone (SEZ) for electronic hardware near the yet-to-be-build international airport off Bangalore, the new policy proposes to convert the existing Export Promotion Industrial Park (EPIP) at Whitefield and the proposed EPIP at Mangalore into SEZ.
Besides the proposal to set up minor airports at Hubli, Mysore, Gulbarga and Bellary, minor seaports will be set up in Moodabidri and Tadri. As part of deregulating the business environment, the State government will assign public utility status to exporting units who are exporting more than 50 per cent of their total turnover.