Explain the 'PUSH' strategy of the Government of Andhra Pradesh with respect to Export Promotion Policy…

Question

Explain the 'PUSH' strategy of the Government of Andhra Pradesh with respect to Export Promotion Policy (2022 – 27). Discuss the challenges of export sector and the support extended by the AP Government towards export promotion in Andhra Pradesh.

Ghissu Editorial · Accepted Answer

The PUSH strategy of Andhra Pradesh's Export Promotion Policy 2022-27 proactively builds export capacity through district export plans, single-window clearance, export zones, testing labs and market promotion, against challenges of costly power, few IEC holders and weak inland logistics. The state's exports exceeded US$19 billion in FY22.

**Introduction**

Andhra Pradesh⟦2⟧⟦1⟧’s Export Promotion Policy (2022–27) adopts a 'PUSH' strategy to proactively enhance export capabilities by addressing infrastructure, institutional support, and market access, crucial for maintaining competitiveness and leveraging coastal strengths.

**Institutional Framework and Policy Design**

1. **Comprehensive Policy and Coordination**: The policy integrates district-level export plans and sector-specific strategies focusing on engineering goods, seafood, and agro-products, with ==District Export Promotion Councils== and Export Commissioners playing key roles.

2. **Infrastructure and Market Development**: Export hubs in ==Visakhapatnam and East Godavari== benefit from Export Promotion Zones, testing labs, and integrated logistics; marketing support includes trade fairs and international outreach to diversify markets.

**Challenges in Export Sector**

3. **Infrastructure and Cost Barriers**: Power deficits and high tariffs increase production costs, limiting industrial cluster growth; logistics gaps in inland container depots and warehouses reduce supply chain efficiency.

4. **Exporter Base and Growth Constraints**: Low IEC penetration limits exporter numbers; export growth is moderate with a 41.2% increase over three years, needing diversification and stronger cluster development.

**Way Forward**

5. **Power and Capacity Building**: Investments in transmission and renewable capacity can improve power availability and reduce tariffs; targeted programs will increase IEC registrations and integrate MSMEs into global value chains.

6. **Logistics and Market Expansion**: Developing inland container depots and cold storage will enhance supply chains; promoting innovation and market access through trade fairs and digital platforms supports diversification.

**Conclusion**

The 'PUSH' strategy seeks to create a proactive, institutionally coordinated export ecosystem, addressing power, logistics, and capacity challenges to realize Andhra Pradesh’s Swarna Andhra Vision 2047 and sustainable export-led growth.

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