Maharashtra, Tamil Nadu Lead NITI Aayog’s Export Preparedness Index 2024

India’s export competitiveness increasingly depends on the strength of its States and Union Territories. Reflecting this, NITI Aayog has released the Export Preparedness Index 2024, which ranks states based on their export readiness and performance. The index highlights regional strengths, gaps and opportunities as India expands its global trade engagements through free trade and economic partnership agreements.

Why in News?

NITI Aayog has released the Export Preparedness Index (EPI) 2024, ranking Indian States and Union Territories on export readiness. Maharashtra topped the large States category, followed by Tamil Nadu and Gujarat.

Framework and Coverage of EPI 2024

Pillars of Export Preparedness Index (EPI) 2024

Classification of States and Union Territories

For effective peer learning and comparative assessment, States and UTs are grouped into,

• Large States
• Small States
• North Eastern States
• Union Territories

Within each group, regions are classified into three performance categories:

Performance Classification under EPI 2024

A notable feature of EPI 2024 is the increased focus on districts, making them the core units for implementing export strategies based on local capabilities, clusters, and value-chain linkages.

Category-wise Top Performers (Rankers)

A. Large States – Leaders

The following states emerged as top performers in export preparedness among Large States,

1. Maharashtra
2. Tamil Nadu
3. Gujarat
4. Uttar Pradesh
5. Andhra Pradesh

These states demonstrate strong performance across infrastructure, business ecosystem, governance, and export outcomes.

B. Small States, North Eastern States & Union Territories – Leaders

Top performers in this combined category include,

1. Uttarakhand
2. Jammu & Kashmir
3. Nagaland
4. Dadra and Nagar Haveli & Daman and Diu
5. Goa

These regions have shown notable improvements in export facilitation, policy support, and ecosystem development despite structural constraints.

Challengers and Aspirers Category

• The index categorized some regions as ‘challengers’ and ‘aspirers’ based on relative performance.
• Madhya Pradesh, Haryana, Kerala and West Bengal were classified as challengers among large States.
• States such as Odisha, Chhattisgarh, Rajasthan, Bihar and Jharkhand ranked lowest and were placed in the aspirers category, indicating the need for focused policy interventions.
• Among UTs, Delhi was ranked 12th, falling in the challenger category along with Meghalaya, Ladakh and Himachal Pradesh.

What the Export Preparedness Index Measures

• The EPI 2024 evaluates export readiness using 70 indicators across four pillars and 13 sub-pillars. These include export policy, business ecosystem, infrastructure quality and export outcomes.
• The index uses a data-driven and weighted approach, drawing information from both Central and State government sources.
• It assesses export performance and future potential for the period FY22 to FY24, providing a comparative framework for States to benchmark progress.

Role of Domestic Foundations in Exports

• Releasing the report, B V R Subrahmanyam emphasized that as India expands its network of free trade and economic partnership agreements, strong domestic foundations become critical.
• He noted that States must build competitive ecosystems at the district level, align with global standards and respond quickly to emerging export opportunities.
• The index is designed to guide States in strengthening their export strategies in line with national trade goals.

Key Summary at a Glance

Question

Q. Which State topped the Export Preparedness Index 2024 among large States?

A. Tamil Nadu
B. Gujarat
C. Maharashtra
D. Karnataka