EXPORT PREPAREDNESS INDEX          

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Context

• NITI Aayog, in collaboration with the Institute of Competitiveness, will released the second edition of the Export Preparedness Index (EPI) 2021.
• The first Index was launched in August 2020

About EPI

• The Export Preparedness Index ranks all States and Union Territories (UTs) on the basis of their export readiness and performance.
• EPI 2021 is based on four main pillars: policy; business ecosystem; export ecosystem; and export performance.
• The index identifies three major challenges to India’s export promotion efforts. These are -

1. intra- and inter-regional differences in export infrastructure;
2. weak trade support and growth orientation across States; and
3. lack of R&D infrastructure to promote complex and unique exports

Highlights of the 2021 Report

• Gujarat has been named India’s top State in terms of export preparedness for the second year in a row as per an index.
• Maharashtra, Karnataka, Tamil Nadu were ranked second, third and fourth in the index, 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 descending order in the ‘Union Territories and City States’ category, as per the index.

Importance

• The index can be used by States and UTs to benchmark their performance against their peers and analyze the potential challenges to develop better policy mechanisms to foster export-led growth at the subnational level.

https://www.thehindu.com/business/Industry/gujarat-tops-export-preparedness-for-second-year-in-row/article65260472.ece