Export Preparedness Index 2022

Recently, NITI Aayog has released the 3rd edition of Export Preparedness Index (EPI) for States/UTs of India for the year 2022. The report discusses India’s export performance amid the prevailing global trade context in FY22, followed by an overview of the country’s sector-specific export performance.

Export Preparedness Index:

EPI is a comprehensive tool that measures the export preparedness of the States and UTs in India. Exports are vital for stimulating economic growth and development in a country, which necessitates understanding the factors which influence export performance. The index undertakes a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.

The EPI ranks states and UTs on 4 main pillars. They are:

Pillars:
Policy: A comprehensive trade policy providing a strategic direction for exports and imports.
Business Ecosystem: An efficient business ecosystem helping states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
Export Ecosystem: Assess the business environment, which is specific to exports.
Export Performance: This is the only output-based parameter and examines the reach of export footprints of States and UTs.
Sub Pillars:
The index also took into consideration 10 sub-pillars: Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.

Performance of States:

• Top Performers:
  • Tamil Nadu has topped in EPI 2022, followed by Maharashtra and Karnataka. Gujarat, which held the top position in EPI 2021 (released in 2022) has been pushed to the fourth slot in EPI 2022.
  • Tamil Nadu's performance in terms of export performance indicators, including the value of exports, export concentration, and global market footprint, contributed to its top ranking. It has been a consistent leader in sectors such as automotive, leather, textiles, and electronic goods.
• Hilly/Himalayan States:
  • Uttarakhand secured the top position among hilly/Himalayan states in the EPI 2022. It is followed by Himachal Pradesh, Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram.
• Landlocked Regions:
  • Haryana topped the chart among the landlocked regions, indicating its preparedness for exports.
  • It was followed by Telangana, Uttar Pradesh, Punjab, Madhya Pradesh, and Rajasthan.
• Union Territories/Small States:
  • Among union territories and small states, Goa ranked first in the EPI 2022. Jammu and Kashmir, Delhi, Andaman and Nicobar Islands, and Ladakh secured the second, third, fourth, and fifth positions, respectively.

EPI 2022 Overall Rankings