Export Preparedness Index (EPI) 2021

  • March 26, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Export Preparedness Index (EPI) 2021

Subject: Economy

Section: External sector

Concept:

NITI Aayog in partnership with the Institute of Competitiveness releases the Export Preparedness Index (EPI). It is the first report to examine export preparedness and performance of Indian states, EPI intends to identify challenges and opportunities; enhance the effectiveness of government policies; and encourage a facilitative regulatory framework.

The structure of the EPI includes 4 pillars –Policy; Business Ecosystem; Export Ecosystem; Export Performance – and 11 sub-pillars –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.

The 4 pillars and the rationale behind selection of each of them are given below:

  • Policy: A comprehensive trade policy provides a strategic direction for exports and imports.
  • Business Ecosystem:  An efficient business ecosystem can help states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
  • Export Ecosystem: This pillar aims to assess the business environment, which is specific to exports.
  • Export Performance:  This is the only output-based pillar and examines the reach of export footprints of States and Union Territories.

Export Preparedness Index (EPI) 2021

Gujarat, Maharashtra, Karnataka, Tamil Nadu are ranked in the top five states, as coastal States with higher industrial activity and access to sea ports account for a majority of India’s exports.

Haryana, Uttar Pradesh and Madhya Pradesh have been ranked fifth, sixth and seventh in the overall index, but are the top three performers in export preparedness among land-locked States

Uttarakhand, Himachal Pradesh and Tripura have been ranked as the top three Himalayan States in export preparedness,

Delhi, Goa and Jammu & Kashmir have been rated the best performers in the ‘Union Territories and City States’ category, as per the index.

The index identifies three major challenges to India’s export promotion efforts:

  • intra- and inter-regional differences in export infrastructure;
  • weak trade support and growth orientation across States; and
  • lack of R&D infrastructure to promote complex and unique exports.
economy Export Preparedness Index (EPI) 2021