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Report on Export Preparedness Index (EPI) 2020

Export Preparedness Index (EPI) 2020

NITI Aayog in partnership with the Institute of Competitiveness released the Export Preparedness Index (EPI) 2020 on 26 Aug 2020. This is the first report to examine export preparedness and performance of Indian states. EPI also the identify challenges and opportunities, enhance the effectiveness of government policies and encourage a facilitative regulatory framework.

EPI comprises 4 pillars:

  1. Policy
  2. Business Ecosystem
  3. Export Ecosystem
  4. Export Performance

EPI comprises 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.

We have to focus on “Atmanirbhar Bharat” & there is need to increase the export to achieve the target of making India a developed economy. The final framework of Export Preparedness Index was based on essential feedback from states, UTs and organizations. These organisations are EXIM Bank, IIFT and DGCIS.

To set up framework of EPI, 4 pillars are included & rationale behind to choose these pillars of EPI:

Policy: This is to provide a strategic direction on export and import by comprehensive trade policy.
Business Ecosystem: This can be helpful to states attract investments & create an enabling infrastructure for individuals to initiate start-ups.
Export Ecosystem: Aim of this pillar is to assess the business environment, which is specific to exports.
Export Performance: This EPI pillar examines the reach of export footprints of States and Union Territories & this is the only output-based pillar provides report on performance.

On the basis of findings of the report, export promotion in India faces three fundamental challenges:
  1. Intra – and inter-regional disparities in export infrastructure
  2. Poor trade support and growth orientation among states
  3. Poor R&D infrastructure to promote complex and unique exports
Key strategies to address these challenges:
  • A joint development of export infrastructure
  • Strengthening industry-academia linkages
  • Creating state-level engagements for economic diplomacy
First Ranked state in Pillar Wise Export Preparedness Scores across States:

Policy Pillar: Maharashtra – 94.93
Business Ecosystem Pillar: Gujarat – 90.61
Export Ecosystem Pillar: Maharashtra – 81.19
Export Performance Pillar: Mizoram – 78.07

Top Three Category Wise Rankings:

RankStateExport Preparedness
3Tamil Nadu64.93
RankStateExport Preparedness
3Himachal Pradesh 38.85
RankStateExport Preparedness
3Haryana 56.03
Union Territories / City States:
RankStateExport Preparedness
3Chandigarh 26.07

Overall Rankings of States:

RankStateExport PreparednessState Category
3Tamil Nadu 64.93Coastal
10Kerala 54.11 Coastal
11Uttar Pradesh 53.63 Landlocked
12Madhya Pradesh49.47 Landlocked
13Uttarakhand 48.11 Himalayan
14Jharkhand48.00 Landlocked
15Delhi 45.80 UT/City States
16Goa 40.94 UT/City States
17Tripura 40.79Himalayan
18Punjab39.63 Landlocked
19Himachal Pradesh 38.85 Himalayan
20Andhra Pradesh 35.58 Coastal
22West Bengal34.05 Coastal
23Mizoram 29.53 Himalayan
24Nagaland 29.00 Himalayan
25Arunachal Pradesh 28.28 Himalayan
26Sikkim 26.75 Himalayan
27Chandigarh 26.07 UT/City States
28Assam 22.81 Landlocked
29Puducherry 21.86 UT/City States
30Bihar21.55 Landlocked
31Dadra Nagar and Haveli 20.77 UT/City States
32Manipur19.40 Himalayan
33Andaman and Nicobar Islands 17.65 UT/City States
34Daman and Diu 12.76 UT/City States
35Lakshadweep 12.40 UT/City States
36Jammu and Kashmir 12.27 Landlocked