State PCS

Edit Template
Edit Template

Export Preparedness Index 2022 Report

In News : Recently ,NITI Aayog released the Export Preparedness Index 2022 report in New Delhi. The report discusses ......

In News : Recently ,NITI Aayog released the Export Preparedness Index 2022 report in New Delhi.

Context :The report discusses India’s export performance, followed by an overview of the country’s sector-specific export performance. The report emphasizes developing districts as export hubs and analyzes district-level merchandise exports in the country.

Export Preparedness Index (EPI)

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 to identify their strengths and weaknesses.
  • Developing the methodology for the index is an evolving process that constantly incorporates stakeholder feedback.
  • The current EPI rankings aim to help states address their specific challenges, though not directly comparable to previous editions.
The performance of state or Countary assessed 4 Pillars are
  • Policy Pillar: This pillar evaluates state and UT policies supporting exports and the effectiveness of their institutional frameworks for implementation.
  • Business Ecosystem: This pillar assesses the business environment in states and UTs, including infrastructure availability and transport connectivity.
  • Export Ecosystem: This pillar examines the state of export-related infrastructure in states and UTs, as well as the trade support services they provide to exporters, and the level of research and innovation activities that foster export competitiveness.
  • Export Performance: This indicator assesses export growth, diversification, and global presence of states and UTs.
  • The report aims to provide region-specific insights to state governments, assisting them in making informed decisions and promoting inclusive growth.
  • To introduce a framework that encourages competitiveness within the country by comparing the export preparedness of States and UTs.
  • To help stakeholders to identify and improve the factors that affects their state’s exports, and thus enhance their export competitiveness.
  • To offer a comprehensive analysis for policy reforms and the development of a conducive export ecosystem using its data-driven approach.
Key Highlights 
  • The EPI 2022 Report observed that most ‘Coastal States’ have performed well, with the states of Tamil Nadu, Maharashtra, Karnataka and Gujarat being the top-performers in the Export Preparedness Index across the country, in all categories of states.
  • State governments’ efforts have resulted in the creation of export promotion policies and district-level export action plans.
  • It said, 73 percent of districts in the country have an export action plan, and over 99 percent are covered under the One District One Product scheme.
  •  It states that 100 districts in the country are responsible for nearly 87 percent of the country’s exports.
Critical Observations
  • States have lagged in terms of transport connectivity. Lack of air connectivity hinders regional movement of goods, particularly in landlocked or geographically disadvantaged states.
  • Weak performance in R&D reflects inadequate focus on innovation’s role in exports.
  • The state government has to both continue and extend its support to the industries which are struggling.
  • 26 states in the country have registered a decrease in the gross value addition of their manufacturing sector.
  • 10 states have registered a decrease in the inflow of Foreign Direct Investment (FDI).
  • Limited capacity-building workshops hinder exporters’ global market penetration, with most states organizing fewer than 10 workshops per year.
  • For the effectiveness of existing government schemes to support states, timely approval of projects is a must.
What are the Recommendations of the EPI?
  • Adoption of Good Practices: States should be encouraged to adopt good practices from their peers if they suit their needs. Learning from successful states can help lagging states improve their export performance.
  • Investment in Research and Development (R&D): States should prioritize R&D investment for product innovation, market-specific products, quality improvement, cost reduction, and efficiency enhancement.
    • Establishing dedicated research institutes with regular funding can help states improve their exports.
  • Leveraging Geographical Indication (GI) Products: States should capitalize on their unique GI products to establish a presence in the global market. Promoting and improving the manufacturing and quality of GI products can boost exports.
    • For example, Kancheepuram Silk products can only be exported by Tamil Nadu and have no competition across the country.
  • Diversification of Export Markets:Promoting high-growth sectors like IT, pharma, automotive, textiles, and renewable energy can boost India’s export potential.
FAQs Related with Export Preparedness Index 2022 Report
Ques 1: What is the Export Preparedness Index (EPI) 2022 Report?

Answer: The EPI 2022 Report evaluates the export readiness and performance of states and union territories in India.

Ques 2: What factors are considered in the EPI 2022 Report?

Answer: The EPI 2022 Report assesses factors like export performance, diversification, infrastructure, policy support, and promotion policies.

Ques 3: How can the EPI 2022 Report benefit states and union territories?

Answer:The EPI 2022 Report assists states and UTs in enhancing export competitiveness by identifying improvement areas through insights and rankings.

Read Also : All About : Internal Security In India

Demo Class/Enquiries

blog form

More Links
What's New
IAS NEXT is a topmost Coaching Institute offering guidance for Civil & Judicial services like UPSC, State PCS, PCS-J exams since more than 10 years.
Contact Us
Social Icon

Copyright ©  C S NEXT EDUCATION. All Rights Reserved