- NITI Aayog , in partnership with the Institute of Competitiveness, on 25th March, 2022 released Export Preparedness Index 2021.
- The Report is comprehensive analysis of India's export achievements.
Highlights of the Index
- Gujarat has topped the Index, followed by Maharashtra, Karnataka, in the second and third place respectively.
- This edition has shown that most of the ‘Coastal States’ are the best performers, with Gujarat as the top-performer.
- There is a high scoring range amongst Indian states on the EPI, where Gujarat has the highest score of 78.86 and Lakshadweep with the lowest score of 2.12.
- From landlocked states, it is Haryana that emerges as a top performer.
- Amongst Himalayan states and City-states, Uttarakhand and Delhi are the top-performing states.
What is EXPORT PREPAREDNESS INDEX?
- The Export Preparedness Index (EPI) aims to examine the export performance and the export readiness of the states and union territories.
- The index entails four pillars, eleven sub pillars and sixty indicators and covers across 28 states and 8 UTs.
- 4 main pillars—
(a) Policy: A comprehensive trade policy provides a strategic direction for exports and imports.
(b) Business Ecosystem: An efficient business ecosystem can help attract investments and create an enabling infrastructure for businesses to grow.
(c) Export Ecosystem: This pillar aims to assess the business environment, which is specific to exports.
(d) Export Performance: This is the only output-based pillar and examines the reach of export footprints of states and union territories.
- 11 sub-pillars
- Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Access to Finance; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.
Goal of EPI
- The EPI’s primary goal is to instil competition among all Indian states (‘Coastal’, ‘Landlocked’, ‘Himalayan’, and ‘UTs/City-States’) ‘
- To bring about favourable export-promotion policies,
- Ease the regulatory framework to prompt subnational export promotion,
- Create the necessary infrastructure for exports.
- Assist in identifying strategic recommendations for improving export competitiveness.
- It promotes competitive federalism and a fair contest among States/UTs.
Challenges to India’s export promotion
- Intra and inter-regional differences in export infrastructure;
- Weak trade support and growth orientation across states; and
- Lack of R&D infrastructure to promote complex and unique exports.
- The index can be used by states and union territories (UTs) to benchmark their performance against their peers and analyse potential challenges to develop better policy mechanisms to foster export-led growth at the subnational level.