Export Preparedness Index

Export Preparedness Index

News: Recently, NITI Aayog has released the 3rd edition of Export Preparedness Index (EPI) for States/UTs of India for the year 2022.

What is Export Preparedness Index?
• EPI is a comprehensive tool which measures the export preparedness of the States and UTs in India.
• Exports are vital for simulating economic growth and development in a country.
• The index undertakes a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.
• The 4 main pillars of EPI include I) Policy II) Business ecosystem III) Export Ecosystem and IV) Export Performance
• It also includes 10 sub-pillars – Export promotion policy, R&D infra, Transport connectivity etc

Key Findings:

Top performers
• Tamil Nadu has topped in EPI 2022, followed by Maharashtra and Karnataka.
• Gujarat, which held the top position in EPI 2021 has been pushed to the fourth slot in EPI 2022.

Landlocked states
• Haryana topped the chart among the landlocked regions, indicating its preparedness for exports. It was followed by Telangana, Uttar Pradesh, Punjab, Madhya Pradesh, and Rajasthan.

UT’s/Small States
• Goa ranked first in the EPI 2022 followed by Jammu and Kashmir, Delhi, Andaman and Nicobar Islands, and Ladakh.

Hilly states
• Uttarakhand secured the top position among hilly/Himalayan states in the EPI 2022 followed by Himachal Pradesh, Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram.

What are important learnings from EPI?
• Coastal states have fared the best across all indicators with six out of the top states in the index coming from the coastal region of the country.
• In terms of strengths, the policy ecosystem is a positive story with multiple states adopting the necessary policy measures to drive exports in their states.
• At the district-level, 73 % of districts in the country have an export action plan and over 99 % are covered under the ‘One District One Product’ scheme.
• However, some states have lagged in terms of transport connectivity. The absence of air connectivity hampers the movement of goods across regions.
• The lower performance of the country in terms of Research and Development (R&D) indicates the lack of attention given to the role of innovation in exports.

Key Recommendations:
• Learn from the best performing states.
• Capitalize on GI tagged products
• Foster product innovation. Invest more in R&D for the same.
• Diversify export markets, focus on sectors that facilitate better growth and export prospects (Pharma, automotives, Textiles, renewables) 

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