NITI Aayog, in partnership with the Institute of Competitiveness, released the Export Preparedness Index 2021.
The second edition of the index will be a significant catalyst for promoting competitive federalism and a fair contest among states and UTs in the global export landscape.
Key Findings of Export Preparedness Index 2021
- This edition has shown that most of the ‘Coastal States’ are the best performers, with Gujarat as the top-performer.
- Gujarat secured the top position, followed by Maharashtra, Karnataka, Tamil Nadu (TN), Haryana, Uttar Pradesh, Madhya Pradesh and Punjab (ranks 2 to 8). Telangana got the 10th rank.
- Andhra Pradesh secured 9th rank among the States.
- Among union territories, Delhi has topped the index followed by Goa, Jammu and Kashmir, Chandigarh and Puducheery while Uttarakhand, Himachal Pradesh, Tripura, Sikkim and Manipur were at the top five paces among Himalayan states.
- EPI 2021 brings out three major challenges to India’s export promotion. 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.
- After a very long time, we will see India’s share in world merchandise trade increasing from 1.6 to 1.7 per cent.
- Around 70 per cent of exports have been dominated by five states — Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana.
Back to Basics
About Export Preparedness Index
- The Export Preparedness Index is a data-driven endeavour to identify the fundamental areas critical for subnational export promotion.
- The EPI ranks states and UTs on 4 main pillars—Policy; Business Ecosystem; Export Ecosystem; Export Performance—and 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.
- The 4 pillars and the rationale behind their selection is given below:
- Policy: A comprehensive trade policy provides a strategic direction for exports and imports.
- Business Ecosystem: An efficient business ecosystem can help attract investments and create an enabling infrastructure for businesses to grow.
- Export Ecosystem: This pillar aims to assess the business environment, which is specific to exports.
- Export Performance: This is the only output-based pillar and examines the reach of export footprints of states and union territories.
- 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, and assist in identifying strategic recommendations for improving export competitiveness.
- It promotes competitive federalism and a fair contest among States/UTs.
- The index can be a valuable tool for the government and policymakers in encouraging healthy competition among states and UTs, hence enhancing India’s standing in the global export market.
Visit Abhiyan PEDIA (One of the Most Followed / Recommended) for UPSC Revisions: Click Here
IAS Abhiyan is now on Telegram: Click on the Below link to Join our Channels to stay Updated
IAS Abhiyan Official: Click Here to Join
For UPSC Mains Value Edition (Facts, Quotes, Best Practices, Case Studies): Click Here to Join