NITI Aayog releases the “Export Preparedness Index – 2020”

Gujarat, Maharashtra, Tamil Nadu, Odisha, Karnataka and Kerala in the top ten

• The Government’s think tank NITI Aayog released the Export Preparedness
  Index (EPI)
• Export Preparedness Index (EPI) 2020 intends to identify challenges and
  opportunities in Government policies
• It will identify the enhance the effectiveness of government policies and
  encourage a facilitative regulatory framework

Salient highlights of the EPI 2020

• Gujarat has topped the index followed by Maharashtra and Tamil Nadu. This is
  mainly because of their location near the coast
• The other three coastal states that featured in the top ten rankings are Kerala,
  Odisha and Karnataka
• Among the land locked states, Rajasthan was the top performer followed by
  Telangana and Haryana
• In the category of Himalayan states, Uttarakhand topped the list followed by
  Tripura and Himachal Pradesh
• Among the states that initiated steps to promote exports, Chhattisgarh and
  Jharkhand topped the list
• The report says that the 70% of exports of India are dominated by five states
  namely Maharashtra, Karnataka, Gujarat, Tamil Nadu and Telangana
• Most of the states performed well on transport connectivity, exports
  diversification and infrastructure
• The report also says that the states lack in providing basic trade support
• There are only 10 states in the country that provide trade guide and only 15
  states ensured online portal to disseminate information to exporters

Per Capita Exports

• The per capital export of India stood at 241 USD
• The per capita export of South Korea was 11,900 USD and that of China was
  18,000 USD
• The report says that India has huge potential to boost exports
• The merchandise exports of India have increased from 275.9 billion USD in
  2016-17 to 331 billion USD in 2018-19

Structure of Export Preparedness Index

The structure of the EPI includes four pillars which are Policy, Business Ecosystem,
Export Ecosystem and Export Performance. Details of the four pillars and the
rationale behind the selection of each of them
(1) Policy: A comprehensive trade policy provides a strategic direction for exports
and imports
(2) Business Ecosystem: An efficient business ecosystem can help states attract
investments and create an enabling infrastructure for individuals to initiate
start-ups
(3) Export Ecosystem: This pillar aims to assess the business environment, which
is specific to exports
(4) Export Performance: This is the only output-based pillar and examines the
reach of export footprints of States and Union Territories
It also includes 11 sub-pillars like 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

Pic courtesy : hindustantimes.com