Uttar Pradesh's Export Strategy: A Case Study in Sub-national Response to Global Trade Shocks
UPSC Relevance
Prelims: Indian Economy (Foreign Trade, State-specific schemes - One District One Product (ODOP), MSMEs); Indian Polity and Governance (Federalism).
Mains:
General Studies Paper 2 (Polity & Governance): Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure; Government policies and interventions for development in various sectors. This is a perfect example of a state-level policy initiative contributing to national goals.
General Studies Paper 3 (Economy): Indian Economy and issues relating to growth, development; Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
Key Highlights from the News
The Uttar Pradesh government views the challenge of US tariffs as an opportunity to strengthen its export sector.
To achieve this, the state has launched a new comprehensive Export Promotion Policy 2025–30.
Key incentives in the new policy:
Marketing Development Assistance (MDA) to find new markets.
Freight assistance to reduce high logistics costs, as Uttar Pradesh is a landlocked State.
Concessions on export insurance premiums (ECGC premiums).
Capital subsidy for new export units.
The "One District, One Product" (ODOP) scheme helps connect traditional handicrafts like Banarasi sarees to the global market.
Infrastructure development, such as new airports and MSME parks, is also part of this export promotion drive.
Through these measures, the state government aims to transform Uttar Pradesh into a $1 trillion economy.
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