Karnataka frames plan to boost economic activities with optimum utilization of guarantees

Thousands of crores of rupees have been allocated under the concept of universal basic income. The Karnataka government, which has given guarantees, is working on a number of strategies to boost economic activity. On the instructions of the Chief Minister, officials of various departments are working on a multi-dimensional plan. Many meetings have been held in this regard. Since this is a far-reaching project, the state government is treading cautiously. 

The government is spending an estimated Rs 38,000 crore on guarantees this year. From next year, this amount will exceed Rs 50,000 crore. According to UBI, each BPL family will get an estimated amount of Rs 60,000 per annum. That money should come back to the market and grow the economy, thereby increasing the GDP of the state.

Prakash, an economic expert, speaking to Republic said, "Whatever plan is formulated, it should be towards achieving the state government's goal of a $1 trillion economy. This scheme being formulated by the government will not be implemented easily. There has to be adequate data collection, various departments have to devise strategies, which is why it is the government's decision to adopt a reverse strategy and move forward."

Responsibility to MSIL

MSIL, a government agency, has been entrusted with the responsibility of preparing a project report on what needs to be done and how to provide a market for economic activity. The government intends to implement the scheme through the same agency in the future.

Construction of Highway Hubs

Highway hubs will be constructed on the lines of 'Shop N Shop' mainly along the highways. An official from the state finance department on the condition of anonymity said, "Malls will be constructed at important temples and tourist places in the state. There, arrangements will be made for the sale of agricultural produce, self-help groups, beneficiaries of PMFMP, ODOP schemes, handicrafts. Local food hotels will also be allowed. It is not possible to construct highway hubs in all parts of the state. The construction will be done in a phased manner by attracting private investment."

Branding system

There is a demand for good quality agriculture and other products in the neighbouring state as well. However, in some places, it has been decided to do branding and geo-tagging to prevent adulteration and sale by private players. MSIL has been asked to open outlets outside the state and strategise for sale.

Making products at home

There is a good demand for homemade chocolates in Kerala. Maize is grown in 50 lakh acres in the state but it's going to poultry. The idea is also to manufacture and sell its various products as they are highly nutritious.

Construction of Industrial Sheds

Food processing is a very important task here. For this, it has been decided to bring in a food processing policy for the period 2023-28. Approximately 10 products will be stored, value added, and quality commodity profile will be done. An official Shivashankar from Karnataka Industrial Areas Development Board (KIADB) said, "In addition, it is proposed to construct industrial sheds on KIADB land for micro-food processing. After that, the focus will be on providing e-marketing, warehousing, logistics support. Export promotion will also be facilitated by opening an agri-export cell."

How will it benefit Karnataka?

Poor families who have received financial income from guarantees will get good quality goods as customers here. In addition, the government intends to boost economic activities by providing the best products from the government to the customers of India and abroad.

What is the strategy?

The strategy will be formulated including agriculture, entrepreneurial activities. A number of strategies are being worked out, including processing, sale, platform for sale of handicrafts, branding, geotag, marketing of state produce in other states, attracting private investment to the food processing sector.

Why this idea?

In addition to boosting economic activity, farmers are left with an estimated 47 lakh metric tonnes of marketable foodgrains every year. The government hopes that it will be better for farmers to find markets in the state and outside the state than to build cold storages or warehouses. A good market is provided for the products of the state such as jaggery, chillies, coconut, etc.

Framework to boost economic activity:

• Construction of highway hubs
• 'Shop N Shop' to be set up near temples, tourist places
• To arrange a market for the products of the states apart from Karnataka
• To provide a market for about 45 lakh tonnes of foodgrains left unsold by farmers
• Establishment of Agriculture Export Cell, construction of Micro Food Processing Sheds
• Preparation of food processing policy