New Delhi: To support the viability and export preparedness of the States and Districts, NITI Aayog has released an updated comprehensive data-driven tool ‘Export Preparedness Index (EPI) 2022.
The report presents a comprehensive analysis of India’s export performance in FY22, along with its sector-specific and district-level merchandise export trends. The EPI 2022 Report evaluates the performance of the states across four pillars – Policy, Business Ecosystem, Export Ecosystem, and Export Performance. The index uses 56 indicators that holistically capture the export preparedness of States and UTs in terms of exports at both the state and district level.
The overview of the four pillars in the index is as follows:
- The Policy Pillar evaluates states and UTs’ performance based on their adoption of export-related policy ecosystems at both state and district levels, as well as the institutional framework surrounding the ecosystem.
- The Business Ecosystem assesses the prevailing business environment in a state/UT, along with the extent of business-supportive infrastructure, and the transport connectivity within the state/UTs.
- The Export Ecosystem focuses on the export-related infrastructure in a state, along with the trade support provided to the exporters, and the prevalence of Research and Development in the state to foster innovation.
- The Export Performance is an output-based indicator that gauges the growth of a state’s export over the previous year and analyzes its export concentration and footprint in the global markets.
These pillars are further based on ten sub-pillars – Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.
The EPI 2022 Report observed that most ‘Coastal States’ have performed well, with Tamil Nadu, Maharashtra, Karnataka, and Gujarat being the top-performing states in the Export Preparedness Index across the country, in all categories of states.
The efforts of state governments in improving the policy ecosystem have led many states to create export promotion policies and district-level export action plans. The report notes that there is a scope for improvement in the business and export ecosystem in many states, which is necessary to enhance their export performance.
The report urges state governments to devise solutions to address their unique export challenges. Additionally, states can capitalize on their distinctiveness by promoting and facilitating the global reach of their locally produced goods.
By making consistent investments in research and development, innovation can flourish, leading to increased export efficiency and diversification of India’s export portfolio. Furthermore, proactive efforts in exploring new markets and exporting a wide range of products based on each state’s competitive advantage can significantly enhance India’s global presence.
The report primarily aims to foster competitive federalism, encouraging healthy competition and peer learning among states. To comprehensively evaluate states’ export readiness, important indicators such as the origin of export data and service exports need to be incorporated at the sub-national level. By utilizing this index, states can identify areas for improvement and positively influence their export performance.
Shri. BVR Subramanyam, CEO, NITI Aayog also remarked, “Exports are the driving engines of economic growth, although many states do not realize its importance. With its pillars, sub-pillars, and indicators, this report enables the states to learn how they can improve exports and fills the knowledge gap that exists in terms of awareness about developing export strategies.”
Dr. Arvind Virmani, Member, NITI Aayog said, “Exporting firms are more productive than domestic firms. Their presence contributes to creation of demand for skilled labour, which in turn impacts the overall productivity of the region, the revenue earned by states, quality of jobs, and industrial infrastructure in the state.”
The Export Preparedness Index 2022 report was released by Suman Bery, Vice Chairman, NITI Aayog in the presence of Dr. Arvind Virmani, Member, NITI Aayog; Shri. BVR Subramanyam, CEO, NITI Aayog; Sanjeet Singh, Senior Advisor, NITI Aayog and Amit Kapoor, Chairman, Institute for Competitiveness.
