Districts as export hub scheme

Subject :Government Schemes

Context : Districts as export hubs scheme may be announced in Budget 2023-24.

Concept :

The government’s ambitious project for developing districts as export hubs by promoting one item with potential for increased exports from the identified districts, is likely to be announced in the Union Budget for 2023-24.
It has been decided to invite applications from various districts using the ‘challenge method’.
The Centre has to do preparatory work to fix parameters for selection, and then assign scores for the parameters. The proposals which score the highest will be selected for the first phase
While the Centre’s outlay for development of 50 districts as export hubs in the first phase is likely to be between Rs 1,500-2,000 crore, the final decision will only be taken by the Cabinet.
The scheme to develop export hubs in various districts may be designed as a Centrally-sponsored scheme (CSS) under which the Centre’s contribution could be 60 per cent of the funds, while the rest could come from the states.

What is Challenge method?

Swiss Challenge method is one of the ways of awarding government contracts to private players.
Without an invitation from government, a private player can submit a proposal to government for development of an infrastructure project with exclusive intellectual property rights.

District Export Hub Initiative

Nodal Ministry: Ministry of Commerce and Industry.
It is a Centrally Sponsored Scheme.
The Scheme will be part of the new Foreign Trade Policy(FTP).
Aim: To help producers across 200 districts scale up manufacturing and find foreign buyers for their goods.
Implementing Body: Directorate General of Foreign Trade(DGFT).
Under the scheme, District Export Promotion Committees(DEPCs) have been constituted in most of the districts and products and services with export potential have been identified in each district.