Odisha will not be leaving Bengaluru as a result of the trade of Odisha-based handicraft vendor Sharmila Dhingra, according to a news report.
The trade, which was first reported by The Indian Express on Thursday, came after a meeting between Odisha Sports Minister and Sharmala Dhingras daughter on Friday.
The deal would see Odisha lose two of its biggest customers, as the Philippine market was the first to open in the country and the third to be fully operational, after Malaysia and Indonesia.
The Odisha market will be a new market for the company as it is a small, yet robust, handicraft and apparel exporter, with a turnover of around Rs 25,000 crore last year, with the company targeting to increase to Rs 35,000-35,500 crore in the coming years.
“The trade is in the interest of the stakeholders of both companies, particularly the two companies, and will not have a detrimental impact on the company’s financial position,” said an Odisha official, who did not wish to be named.
The move comes after a number of other transactions in the wake of the Goods and Services Tax (GST) and Goods and Service Tax ( GST ), both of which have brought a slew of small and medium enterprises (SMEs) into the black.
As a result, the market has become one of the hottest markets in the world, with demand for the goods in the past two years hitting a high.
The Dhingras move came in the context of the recent trade war between the two countries, where India has demanded that Odisha stop importing goods from the Philippines, claiming that the country does not pay its fair share of taxes.
The trading ban on imports of Philippine goods has seen many firms shut down in the face of the import ban, but not all of them.
The ban on imported goods from India has only led to the loss of a handful of smaller firms, with companies such as Sharmelas first foray into the market in the late 2000s.
The market has been hit hard by the GST as the tax is a major revenue source for the government, which has also faced criticism over its failure to provide adequate refunds to farmers and other small and marginalised groups in the economy.