Karnataka leads India in service exports, yet surprisingly lags in merchandise (goods) exports, holding the fourth position nationally. This significant disparity was highlighted by C.S. Babu Nagesh, Joint Director of the Visvesvaraya Trade Promotion Centre (VTPC).
During the inauguration of an export management training camp, Mr. Nagesh detailed Karnataka’s remarkable performance in the service sector. In the 2024-25 fiscal year, the state’s service exports reached an impressive $158 billion, constituting 41% of India’s total service exports of $387 billion.
This stellar achievement positions Karnataka ahead of other major states like Maharashtra, Tamil Nadu, Uttar Pradesh, and Gujarat in the services domain.
The Merchandise Gap
However, the picture changes dramatically for merchandise exports. Here, Karnataka falls behind Gujarat, Maharashtra, and Tamil Nadu, securing only the fourth spot.
Combined, Karnataka’s total exports (merchandise and services) amounted to $189 billion, contributing a significant portion to India’s overall exports of $852 billion.
C.S. Babu Nagesh emphasized the need for aspiring exporters to actively contribute to reducing India’s trade deficit by boosting goods exports, aiming to export more than the nation imports.
He also advised participants in the training program to thoroughly research both domestic and international markets before venturing into the export of various commodities.
Nagesh highlighted that VTPC stands as a unique export promotion center across all Indian states. The six-day training program will feature sessions led by representatives from various departments whose approvals are crucial for export operations.
Beyond just facilitating participation in trade exhibitions, VTPC also offers vital information on Special Economic Zones (SEZs) and guides exporters through the simplification of Goods and Services Tax (GST) procedures.
Meanwhile, Suresh Kumar Jain, General Secretary of the Mysuru Industries Association, underscored the importance of ensuring products are both cost-effective and of superior quality for exporters.
Leveraging Geographical Indication (GI) Products
Shivaji Rao A.K., Secretary of the Mysore Chamber of Commerce and Industry, stressed the necessity for export promotion councils to obtain more Geographical Indication (GI) tags. This, he argued, would significantly benefit exporters by enhancing the market value and recognition of unique local products.
Notably, Karnataka boasts the highest number of registered GI tags in India, with 42 products that proudly represent its rich cultural heritage and traditional craftsmanship. These include renowned items like Mysore Silk, Mysore Rosewood Inlay, Mysore Sandalwood Oil, and Mysore Agarbathi, alongside agricultural treasures such as Byadagi chilli and Sirsi supari.
Earlier in the event, Ms. Meghala L, Deputy Director of Zilla Panchayat Mysuru and a representative of the VTPC Export Facilitation Centre in Mysuru, announced that the comprehensive six-day training program would also feature a cargo visit to Bengaluru airport. Additionally, it would include interactive sessions with successful exporters, offering trainees valuable insights from their real-world experiences.