Quarterly Newsletter

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APRIL 2023 – JUNE 2023 During the year 2022-23, the State registered positive growth in 13 of the 21
sectors in Merchandise Exports besides the Service Sector. Significant rise in
exports were gained in Petroleum Products, Automobile Sector, Textile &
Readymade Garments, Aerospace, Marine Products and Agriculture and
Focus Product: Processed Food Products.
Karnataka’s Focus Country:
Static Inverters
Export Mexico, Italy, Notwithstanding the fact that there was a negative trend recorded in overall
(Voltage Merchandise Exports in the fourth quarter of 2022-23, the overall growth in
Performance UK exports in the said quarter has exhibited a positive trend by around 6 billion
Stabilisers) USD. Service exports have continued to aid this growth. Positive growth was
also registered in few segments across merchandise sector like Agricultural
and processed foods, Coffee, Aerospace among others.

Agri Focus: Key Exim Key Initiatives/ On a promising note, we believe that with a slew of initiatives being
Meets in Export undertaken by the State in right earnest, in particular the implementation of
Cane Molasses Updates Promotion the State Logistics Policy, it is a matter of time that the growth rate would
rebound further.

In this edition of the Newsletter, we present Mexico, UK and Italy as ‘Focus

Countries’ and Static Converters (Voltage Stabilizers) as the ‘Focus Product’
for analysis. Further with tremendous potential found in ‘Cane Molasses’, find
Capacity
Capacity GI Spotlight: insights on the product in our ‘Agri Focus’ section. Familiarise yourselves with
Building a 200 year old textile weave namely Guledgudd Khana, a GI tagged product
Building Guledgudd
Programs Khana of the State from the Bagalkot region under our section – ‘GI Spotlight.’ We
Programs (IPR) look forward to your feedback and suggestions for making this channel an
(Exports)
effective medium to keep abreast of all the recent happenings in the exports
landscape.
S.R Satheesha
Director (Exports) &
Managing Director, VTPC
 Karnataka’s Export Performance: 4th Quarter 2022-23
45.00
42.17 TOP EXPORT MARKETS TOP EXPORTED COMMODITIES
40.00
35.23 36.25 (Jan to March - 2023) (Jan to March -2023)
35.00

30.00 25.58
25.00
USA ENGINEERING
1.59 BN $ 2.11 BN $
20.00

15.00

10.00 7.68
6.93 UAE PETROLEUM
5.00 0.47 BN $ 1.37 BN $
0.00
Merchandise Exports Service Exports Overall Exports

Jan to March 2021-22 Jan to March 2022-23 China AGRICULTURE & PROCESSED
0.35 BN $ FOOD INCLUDING SEEDS &
➢ Karnataka’s Merchandise exports have shown a downward trend during
BEVERAGES
the 4th quarter (Jan to March-2023) recording negative growth of 0.75 0.90 BN $
Bn USD. However, Service exports have increased by nearly 10.00 Bn
USD, indicating positive growth in the overall exports by about 6.00 Bn NETHERLANDS
USD. 0.33 BN $ TEXTILES & GARMENTS
0.62 BN $
➢ State has seen substantial growth to the tune of about 37.70% in
sectors like Software and Services. Other sectors where the state ITALY
0.25 BN $ BASIC CHEMICALS,
excelled include Agricultural & processed foods, Coffee, Aerospace, PHARMACEUTICALS &
Marine products, Gems & Jewellery, Leather products, Wool and COSMETICS
woolen products and Semiconductors. 0.52 BN $
 Focus Countries: 1st
Mexico, UK & Italy
Static Converters (Voltage Stabilizers)
Static Converters (Voltage Stabilizers)
have become an integral part of our
328.13 Mn $
HS CODE: 85044090 (2022-23)
day-to-day lives. Its usage is found in all
spheres be it at our house, offices, HS CODE: 85044090
➢ Top five importers of Static Converters in the world are the USA, industries and in all establishments.
Focus Product:
China, Germany, Netherlands, Hong Kong. Static Converters
Top manufacturers of Voltage Stabilizers (Voltage Stabilizer)

➢ Karnataka is the top exporting State and export markets include have their units housed in Karnataka,
providing job opportunities, qualitative & Largest Exporter in India
USA, Netherlands, France, Singapore and Australia. However,
new markets such as Mexico, UK & Italy can be explored for quantitative production of top-end
diversification. models which get exported to various
countries from our ports.
➢ Karnataka has witnessed a steady growth from 226.00 Mn USD
during 2020-21 which rose to 251.00 Mn USD and further
increased to 328.00 Mn USD during 2022-23, which indicates a
rise of 35% compared to 2020-21.

➢ Though the USA has been the largest importer of this product
along with Netherlands & France for the last three years,
Mexico, Italy and UK markets have shown increased demand for
this product and hence could be our focus countries for
enhancing our exports.
 Agri - Focus Product: Focus Country: Spain &
Japan
Cane Molasses
HS CODE: 17031000 Cane Molasses
HS CODE: 17031000

2nd

2nd Largest Exporter in

India ➢ India ranks first in exports of this product globally with
major export markets in the USA, Philippines, UK, Korea &
86.57 Mn $ Ireland.
(2022-23)

➢ Karnataka ranks 2nd after Maharashtra with a share of

➢ Molasses is a viscous substance resulting from Refining Sugar Cane
34% of India’s export by catering to markets in the
into Sugar. It is primarily used for sweetening, flavoring and in
production of energy bars. Netherlands, Philippines, Ireland, Italy & Spain.
➢ Molasses is in huge demand in Baking Industry. It is also used in
production of Rum in Liquor Industry. Some of the other usages are
➢ However, considering the last five-year statistics and the
Molasses used as animal feed and industrial production of vinegar.
steep rise in export requirements of Spain and Japan,
➢ In Cosmetic Industry it is used for hair conditioning and as face wash. marking it as our next destination for exports would be a
➢ Cane Molasses imports requirement has increased by 40% over past smart move.
4 years (from 630.00 Mn USD during 2018 to 1100.00 Mn USD during
2022).
➢ Karnataka is contributing well in exports of this product globally with
exports having increased from 36.00 Mn USD during 2020 to 87.00
Mn USD during 2022.
Key EXIM Decisions during 4th Quarter
• Amendments in Chapter 5 of the Handbook of Procedures, 2015-20 - One time relaxation from maintenance of
Average Export Obligation and extension in Export obligation period for specified EPCG Authorizations –
Notification No: 53/2015-2020.

• Extension of Date for mandatory electronic filing of Non-Preferential Certificate of Origin (CoO) through the
Common Digital Platform to 31st December 2023 - 27/2022-23

• Amendment in Import Policy and policy condition of ITC (HS) Code 080280 (Areca nuts) of Chapter-08 and
ITC (HS) Code 2106 90 30 (Betelnuts) of Chapter-21 of ITC (HS), 2022, Schedule-I (Import Policy) – vide
Notification No: 57/2015-20.
 Key Initiatives/Meets in Export Promotion
Glimpses

✓ VC- State Interaction- South Zone States/UTs, 4th

May’23, hosted by Logistics Division, DPIIT

✓ Stakeholders Consultation for City Logistics Plan

Bengaluru, organised by UDD Department, 19th and
20th Apr ’23, Hotel Lalit Ashok, Bengaluru
Retail Trade Licences Issues Meet under Additional
Chief Secretary – Urban Development Department,
22nd June’23, Vikasa Soudha, Bengaluru
Pre Budget Review Meeting by
Minister for LMI, 14th June’23,
Vikasa Soudha, Bengaluru

✓ LEADS 2023: Kick-off video conference with States/

Union Territories, 19th April’23

✓ Series of Meetings pertaining to LEADS Perception

Survey were held (22nd June and more)

✓ Meets held pertaining to Logistics and Warehousing

Sector
VTPC participated in the Review Meet of
various entities under Minister for LMI, 100th GC & AGM, 3rd May’23,
1st June’23, Vikasa Soudha, Bengaluru Khanija Bhavan, Bengaluru
 Capacity Building Programs (Exports)

Awareness Program of NSIC Schemes, Digital

Services and Export Facilitation, 23rd May’23
Export Awareness Program, 19th June’23,
in association with KCCI, Hubballi
Davanagere

116th EMTP, 26th June to 1st Jul’23, VTPC Training Hall, VTPC, Bengaluru

More…
Export Workshop on 'Strategies for
✓ MD VTPC addressed stakeholders in a ‘Talk on Export
Increasing MSMEs exports from Promotion and Procedures to be followed’, 29th May’23,
Karnataka', 19th May’23, organised by
CII Karnataka, Belagavi Capacity Building Program on 'Opportunities Mysore Paints & Varnish Ltd., Mysore
for Exports & Review of New Foreign Trade
Policy' 21st April, in association with Plexonil, ✓ Entrepreneurship Development Program on Exports and
Hotel Royal Orchid Central, Bengaluru
Imports, 23rd Apr’23, AWAKE Bengaluru
 Capacity Building Programs (IPR)
✓ Export Awareness Program for Authorised Users of GI tagged
‘Guledgudd Khana’, 26th May’23, at Guledgudd Khana Handloom
Weaver Producer Company, Guledgudd
✓ Webinar on ‘Overview of Intellectual Property Rights Spectrum with
Spotlight to Patents’, 25th May’23, in association with IEEE Chapter of
UVCE, Bengaluru
✓ Workshop on Legal Environment and IPs for Startups, 20th May’23 in
association with Siddaganga Institute of Technology, Tumakuru
✓ Workshop on Innovation Management and IPR, Apr’23, organised
27th
in association with Dayanand Sagar Academy of Technology and
Management (DSATM), Bengaluru
✓ Workshop on ‘Creative Thinking and Means and Methods for
Innovation’, 25th Apr’23 in association with Don Bosco Institute of
Technology, Bengaluru
✓ 3 Days FDP on IP Commercialisation, 24th to 26th Apr’23, in
association with Sahayadri College, Mangaluru
✓ Workshop on IPR and IP Management for Start-ups, 21st Apr’23, in
association with Oxford College of Engineering, Bengaluru
✓ National Level Online Professional Development Program (PDP):
‘GI as a powerful IP tool impacting grassroots’, 13th Apr’23 in
association with Smt.Saraladevi Satishchandra Agarwal
Government First Grade College, Ballari
✓ National Level Online PDP: ‘Innovation eco system and business
transformation 2030’, 12th Apr’23 in association with Smt.Saraladevi
Satishchandra Agarwal Government First Grade College, Ballari
✓ National Level Online PDP: ‘Demystifying the IP Spectrum and
emphasis in the NEP 2020’, 11th Apr’23 in association with
Smt.Saraladevi Satishchandra Agarwal Government First Grade
College, Ballari
✓ Workshop on ‘Unleashing creativity and innovation’, 11th Apr’23,
organised in association with DSATM, Bengaluru
 GI SPOTLIGHT: GULEDDGUD KHANA
Originating from Badami Taluk of Bagalkot District, the Choli (Khana or
Blouse) cloth manufacture in the region is a 200 year old weave and
popularly known as Guleddgudd Khana. The Ilkal Sarees and
Guledgudd Khana in their most captivating combinations are used
extensively in Urban and Rural parts of Karnataka and Maharashtra.
The invigorative climate, abundance of raw cotton in adjoining taluk
and districts and the mineral rich water of this region are specialities
which aid in making colour mixing and dyeing of raw silk and cotton
yarn durable and bright.
The production of the traditional Khana fabric goes through various
processes, several of which are manual and practiced since
generations. The basic raw material of the cluster is Silk and Art Silk
(Viscose) and Cotton yarn, procured in the form of hank. Natural
materials are used for sizing the yarn. A speciality of the weave is
Indigo Dyes which are predominantly used for dyeing the yarn and
carried out in special earthen pots/copper vessels which are buried in
the ground. This process enables the dyer to maintain and ensure
stability of the required temperature conditions. There are around 46
exquisite and unique designs being used in the craft which are
thematic and produced by using dyed yarns and reflects the traditions
followed by the community since generations. The motives used for
the designs in Guledgudd cluster are extracted from nature, ancient
stone sculptures of Badami and from the Hindu Mythology.
Awed and inspired by a long standing family history of practising
the ancient textile weave since several generations, A.V Ramesh, a
seasoned and veteran weaver has been in this profession since
more than three decades. The mystical weave, he believes, has
been a boon providing livelihood to the Guledgudd Khana fraternity.
The presence of a repertoire of designs reflecting the culture of the
region and vibrant colours have aided in good demand and price for
the product being patronised by customers.
Ramesh reminiscences his long journey with this weave, which is a
mixed bag for him as he had to encounter his share of challenges
at different points of time. During the commencement of his
business, there was a sudden lull due to the rise in the price of the
raw materials – the silk threads. Further there was steep
competition to be faced from power loom and polyester products.
However after a while, the situation catapulted in his favour and the
prices witnessed an upward spiral and he was also able to address
the other challenges with elan. On a positive note, the Covid-19
pandemic came as a blessing in disguise, throwing open a plethora
of opportunities to resort to Virtual platforms like creation of a portal
namely khanaweaves to sell their wares. He ensured that he needs
to brave the odds and with perseverance and dedication decided to
continue the traditional family business. Further, he also identified
new strategies like selling his products through his venture –
Guledgudda Khana Handloom Weaver Producer Company Ltd.,
besides through local businessmen as well.
What does the future herald for the GI product? Ramesh avers that
a great future beckons if Government could support the fraternity by
providing working capital funds and exposure to different markets.
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@Vtpc_karnataka
Visvesvaraya Trade Promotion Centre
VTPC Building, Kasturba Road,
Bengaluru – 560 001 Visvesvaraya Trade
Promotion Centre - India |
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