EXPORT PREPAREDNESS INDEX
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Context
- NITI Aayog, in collaboration with the Institute of Competitiveness, will released the second edition of the Export Preparedness Index (EPI) 2021.
- The first Index was launched in August 2020
About EPI
- The Export Preparedness Index ranks all States and Union Territories (UTs) on the basis of their export readiness and performance.
- EPI 2021 is based on four main pillars: policy; business ecosystem; export ecosystem; and export performance.
- The index identifies three major challenges to India’s export promotion efforts. These are -
- 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
Highlights of the 2021 Report
- Gujarat has been named India’s top State in terms of export preparedness for the second year in a row as per an index.
- Maharashtra, Karnataka, Tamil Nadu were ranked second, third and fourth in the index, as coastal States with higher industrial activity and access to sea ports account for a majority of India’s exports.
- Haryana, Uttar Pradesh and Madhya Pradesh have been ranked fifth, sixth and seventh in the overall index, but are the top three performers in export preparedness among land-locked States.
- Uttarakhand, Himachal Pradesh and Tripura have been ranked as the top three Himalayan States in export preparedness.
- Delhi, Goa and Jammu & Kashmir have been rated the best performers in descending order in the ‘Union Territories and City States’ category, as per the index.
Importance
- The index can be used by States and UTs to benchmark their performance against their peers and analyze the potential challenges to develop better policy mechanisms to foster export-led growth at the subnational level.
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