The Cabinet meeting approved the Kerala Export Promotion Policy 2025 aimed at making the state an export hub. The state will support exporters in exploring new opportunities and expanding their global presence, a move expected to drive economic growth, according to an official statement.
The policy focuses on enabling exporters to leverage the state’s unique advantages, including its natural resources, skilled labor, rich cultural heritage, and strategic geographical location. Export zones will be developed in selected areas, and programs will be introduced to boost the competitiveness of existing businesses.
The policy will promote modernization by encouraging research across various sectors to foster the development of advanced technologies. It will also facilitate collaboration between industry, academic institutions, and research centers. Sustainable and environmentally friendly practices will be prioritized, with a focus on creating a supportive ecosystem for exporters.
The government will concentrate on improving logistics, transportation, and connectivity to better serve the needs of exporters. Efforts will also be made to identify new opportunities for both traditional and emerging exporters. Additionally, Kerala’s presence will be strengthened at international trade fairs to showcase its potential in the global market.
The policy outlines 13 key focus areas aimed at boosting exports, which include: spices, horticulture, and agricultural products; shrimp and other marine products; processed food products; engineering goods; petrochemical products; organic and inorganic chemicals; textiles and garments; defense and aerospace; electronics and allied manufacturing; ancillary engineering and technology; Ayurveda and pharmaceuticals; services like IT and healthcare; and GI-listed products from the state.
The government will provide a 25% subsidy for setting up infrastructure facilities, such as cold storage units, warehousing, and logistics, with a cap of Rs 1 crore. Additionally, export units will receive an incentive of 1% of the Free On Board (FOB) value for three years. For transportation and handling charges at ports, as well as logistics costs, a 50% incentive will be offered for the first five years, starting with the unit’s first export, with a maximum cap of Rs 15 lakh. The government will establish a digital export platform to link exporters with international buyers. It will promote consortia or clusters of small and medium enterprises engaged in export.
