NITI Aayog released the third edition of the report titled ‘Export Preparedness Index: EPI’ for the States/UTs of India.The report was released by Shri Suman Berry, Vice Chairman, NITI Aayog. In the ‘Export Preparedness Index’ prepared by NITI Aayog in collaboration with the Institute for Competitiveness, exports have been examined at the district level beyond the states.
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, which necessitates understanding the factors which influence export performance.
- The index undertakes a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.
Pillars
- Policy: A comprehensive trade policy providing a strategic direction for exports and imports.
- Business Ecosystem: An efficient business ecosystem helping states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
- Export Ecosystem: Assess the business environment, which is specific to exports.
- Export Performance: This is the only output-based parameter and examines the reach of export footprints of States and UTs.
Sub Pillars
- The index also took into consideration 10 sub-pillars: Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.
- Features: The EPI is a data-driven effort to identify the core areas crucial for export promotion at the sub-national level (states and union territories).
- It explores and highlights India’s export potential by examining the different contributions made by each state and union territories.
Key Highlights of the EPI 2022
Performance of States
Top Performers
- Tamil Nadu has topped in EPI 2022, followed by Maharashtra and Karnataka.
- Gujarat, which held the top position in EPI 2021 (released in 2022) has been pushed to the fourth slot in EPI 2022.
- Tamil Nadu’s performance in terms of export performance indicators, including the value of exports, export concentration, and global market footprint, contributed to its top ranking.
- It has been a consistent leader in sectors such as automotive, leather, textiles, and electronic goods.
Hilly/Himalayan States
- Uttarakhand secured the top position among hilly/Himalayan states in the EPI 2022. It is followed by Himachal Pradesh, Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram.
Landlocked Regions
- 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.
Union Territories/Small States
- Among union territories and small states, Goa ranked first in the EPI 2022.
- Jammu and Kashmir, Delhi, Andaman and Nicobar Islands, and Ladakh secured the second, third, fourth, and fifth positions, respectively.
Global Economy
- Global trade in 2021 showed signs of recovery from the Covid-19. Factors like increased demand for goods, fiscal policies, vaccine distribution, and easing of restrictions contributed to a 27% increase in merchandise trade and a 16% increase in services trade compared to the previous year.
- The Russo-Ukrainian war in February 2022 slowed down the recovery, impacting sectors like grain, oil, and natural gas.
- Trade in goods saw significant growth, and services trade recovered to pre-pandemic levels by Q4 2021.