EPI 2021: Gujarat has topped NITI Aayog’s Export Preparedness Index (EPI) 2021 for the second consecutive time, while Maharashtra has been ranked second and Karnataka has been ranked third. NITI Aayog released EPI 2021 in partnership with the Institute of Competitiveness on March 25, 2022.
The Export Preparedness Index is a comprehensive analysis of India’s export achievements. It aims to identify the fundamental areas critical for subnational export promotion. The coastal states have been adjudged as the best performers in the index. .
The index can be used by states and union territories to compare their performance against others and analyse potential challenges to develop better policy mechanisms.
Export Preparedness Index 2021 Parameters
The EPI ranks the states and UTs on four main pillars and 11 sub-pillars. The four pillars include-
1. Policy- A comprehensive trade policy provides a strategic direction for exports and imports.
2. Business Ecosystem- It examines the business ecosystem, as an efficient business ecosystem can help attract investments and create an enabling infrastructure for businesses to grow.
3. Export Ecosystem- It aims to assess the business environment, specific to exports.
4. Export Performance- It examines the reach of export footprints of states and union territories.
The 11 sub-pillars include:
Export Promotion Policy
Access to Finance
Export Preparedness Index 2021– Full Rankings List
|21||Jammu and Kashmir||30.06|
Dadra Nagar and Haveli & Daman and Diu
|28||Andaman and Nicobar
EPI 2021 – Key Challenges
The Export Preparedness Index 2021 has brought out three major challenges to India’s export promotion-
1. Intra- and inter-regional differences in export infrastructure
2. Weak trade support and growth orientation across states
3. Lack of R&D infrastructure to promote complex and unique exports.
EPI 2021 – Key Goals
The main goal of the Export Preparedness Index 2021 is to instill competition among all Indian states including the coastal, Himalayan, landlocked and UTs to bring out favourable export promotion policies.
It also aims to ease the regulatory framework to prompt sub-national export promotion and create the necessary infrastructure for exports.
It also aims to assist in identifying strategic recommendations for improving export competitiveness.
Export Preparedness Index 2021- Significance
The Export Preparedness Index 2021 can be a valuable tool for the government and policymakers in encouraging healthy competition among states and UTs.