The merchandise exports from Kerala stood at US$ 9.8 billion in 2018-19, as per the study published by the Export-Import Bank of India (Exim Bank). Despite exports from the state have registered robust growth during the recent period, there remains an untapped merchandise export potential of nearly US$ 6.7 billion. Realising this potential could increase merchandise exports from the state to nearly US$ 16.5 billion. With a favourable policy framework and concerted efforts to boost exports, Kerala could target to achieve US$ 54.7 billion of export revenues by 2024-25.
Exim Bank released a working paper titled ‘Promoting Exports from Kerala: Insights and Policy Perspectives’. The study identifies a six-pronged export strategy for the state, built upon the essential dimensions of diversification of products and markets, infrastructure leverage and strengthening, capacity building, fiscal incentives, devising an export promotion campaign, and institutional streamlining. The Study recommends diversification away from traditional export items for Kerala towards higher value-added products such as processed food, technical textiles, bulk drugs, and electronics and machinery.