Sagarmala project to help develop furniture clusters near major ports.

In a major developmental initiative to pave the way for port-led industrialisation, the Shipping Ministry’s ambitious Sagarmala project will focus on developing furniture clusters near major ports.

Port-led industrialisation throughout the world in the past 20 years has helped the furniture manufacturing sector grow and this can be pursued in India to enable the country garner a significant share in the global furniture market.

The development of port-based furniture clusters will help reduce the overall cost of exports from India and counter the Chinese dominance in the world furniture market, a draft report on the national perspective plan of Sagarmala project said.

Sagarmala is a national programme aimed at accelerating economic development by harnessing the potential of India’s coastline and river network.

It is pointed out that ports and logistics infrastructure played a major role in making China, the biggest exporter of furniture by overtaking the European markets. The dragon nation has made it possible by coastally strengthening the port-based imports and re-exports production, which is one of the economically viable options for furniture manufacturing. Malaysia is also a major furniture exporter with clusters located in close proximity to major ports.

However, India has its own problems in gaining an edge in this sector. The reduction of logistics cost, among others, will lower the overall value chain cost of finished products and reduce raw materials import cost. Therefore, setting up of port-based clusters will help reduce the overall export cost. India, according to the report, has a maximum share in furniture exports to the US and UK, besides being a self sufficient domestic market, due to the rising consumer interest in home décor products of premium brands.

HBL