Published every year by NITI Aayog in collaboration with the Institute of Competitiveness, this report aims to identify obstacles and possibilities, improve the efficacy of government programs, and promote an export-friendly legislative regime.
What is Export Preparedness Index [EPI]?
The Export Preparedness Index [EPI] is a study that provides a detailed examination of India's export development. States and union territories can use this index to analyse their performance and create a healthy atmosphere for administration among them. It's a data-driven endeavour to determine the most important aspects of promoting exports.
The Export Preparedness Index [EPI] aids the establishment of more robust policy tools for export-led growth at the subnational level by entailing four pillars, eleven sub pillars, and sixty indicators and covers 28 states and 8 UTs. The EPI rankings are awarded to states and union territories based on four fundamental pillars:
- Business ecosystem
- Export ecosystem
- Export performance
Export Preparedness Index [EPI] Significance
- Its goal is to look at the states' and union territories' export and preparedness.
- An index is a critical tool for policymakers and exporters to identify and analyse the drivers and barriers to a sustainable export strategy for the state.
- The Export Preparedness Index [EPI] is a valuable tool for state governments to assess regional performance in terms of export promotion and, as a result, provide vital policy ideas on how to improve and expand exports.
Export Preparedness Index [EPI] - Challenges to Indian Exports
The Export Preparedness Index [EPI] identifies three significant hurdles to India's export promotion activities.
- Variations in export capabilities between intra- and inter-regions.
- Weak trade assistance and growth direction between states.
- There is a lack of research and development infrastructure to support complicated, one-of-a-kind exports.
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Export Preparedness Index [EPI] - Current Scenario
- Export is a critical component of increasing GDP levels.
- Exports have contributed nearly 20% of India's GDP on average over the last decade, making them a fundamental component of its economic progress.
- Since the beginning of FY 2021-22, India has had favourable export statistics, and in December 2021, India recorded its highest ever export of 37 billion USD, a 37% increase over December 2020.
Way Forward for Indian Export
- To boost export performance, it is required to invest in developing dependable and efficient export infrastructure, which will assist in reducing costs and increasing efficiency in the export supply chain.
- The Export Preparedness Index [EPI] is critical to attaining export sector stability and development.
- To overcome the obstacles in exporting, a focus on essential measures such as developing export infrastructure, improving industry-academia linkages, and building state-level interactions for economic diplomacy.
- Export promotion can also benefit from the involvement of the private sector.
FAQs on Export Preparedness Index [EPI]
Q.1. What are the four pillars of the Export Preparedness Index [EPI]?
The four pillars of the Export Preparedness Index [EPI] are -
- Trade policy: A broad trade policy that directs exports and imports in a plan.
- Business Ecosystem: A well-functioning business ecosystem aids states in attracting investments and providing an enabling environment for individuals to establish businesses.
- Export Ecosystem: Assess the economic environment, which is specialised in exports.
- Performance: This is the sole output-based metric, and it assesses the reach of States' and Union Territories' export footprints.
Q.2. What are the features of the Export Preparedness Index [EPI]?
The Export Preparedness Index [EPI] is a statistics endeavour to determine the fundamental areas critical for subnational export markets.
Q.3. Which states are the best performers in the Export Preparedness Index [EPI]?
Most Coastal States are the top achievers in the Export Preparedness Index [EPI]. For the second year in a row, Gujarat was placed first.
Q.4. Who released the Export Preparedness Index [EPI]?
In the presence of NITI Aayog CEO Amitabh Kant, Department of Commerce Secretary BVR Subrahmanyam, and other dignitaries, the Export Preparedness Index [EPI] was announced by NITI Aayog Vice-Chairman Dr Rajiv Kumar.
Q.5. What are Indian Export Challenges being overcome by the Export Preparedness Index [EPI]?
Differences in export infrastructures exist both within and across nation-states poor support for trade and a growth-oriented mindset among national states. To promote complicated and distinctive exports, there is a lack of research and development expertise, these are the Indian Export Challenges being overcome by the Export Preparedness Index [EPI]