The third edition of the Export Preparedness Index (EPI) for States/UTs of India for the year 2022 is set to be released by NITI Aayog on July 17, 2023. This index assesses the export performance of Indian states and UTs, considering the global trade context in FY22. The report emphasizes the importance of developing districts as export hubs and conducts a district-level analysis of merchandise exports in the country.
Understanding the Export Preparedness Index (EPI):
The EPI serves as a comprehensive tool to measure the export preparedness of Indian states and UTs. It recognizes that exports play a crucial role in stimulating economic growth and development. The index evaluates states and UTs based on various export-related parameters, aiming to identify their strengths and weaknesses. The methodology of the index is continually refined based on stakeholder feedback, making the rankings of this edition not directly comparable to previous editions. Nevertheless, the EPI aims to provide insights that drive policy changes to address specific challenges faced by states and UTs.
EPI assess the performance of the States and UTs across four pillars:
Pillar 1: Policy Pillar
The Policy Pillar assesses states and UTs based on their adoption of export-related policies at both the state and district levels. It also evaluates the institutional framework surrounding the export ecosystem. This pillar focuses on understanding the policy ecosystem and its impact on export performance.
Pillar 2: Business Ecosystem
The Business Ecosystem Pillar evaluates the prevailing business environment within a state/UT, considering factors such as business-supportive infrastructure and transport connectivity. This pillar aims to assess the overall business climate and its impact on export activities.
Pillar 3: Export Ecosystem
The Export Ecosystem Pillar focuses on the export-related infrastructure within a state/UT. It examines the trade support provided to exporters and the prevalence of Research and Development (R&D) to foster innovation. This pillar aims to gauge the state’s efforts in promoting exports through infrastructure development and innovation.
Pillar 4: Export Performance
The Export Performance Pillar measures the output-based indicators of a state’s export growth compared to the previous year. It analyzes the concentration and footprint of a state’s exports in global markets. This pillar provides a comprehensive picture of a state/UT’s export preparedness and encourages peer-learning among them to promote competitive federalism.