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Export preparedness index (EPI) 2022

  • Published
    19th Jul, 2023
Context

Recently, the third edition of the report titled ‘Export Preparedness Index (EPI) 2022’ for States/UTs of India.

About the Report:
  • Released by: NITI Aayog
  • Aim: To evaluate the export performance and pending potential of the Indian States and Union Territories.
  • Export Preparedness Index (EPI) is a comprehensive tool which measures the export preparedness of the States and UTs in India. 
  • The index undertakes a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.
  • Developing the methodology for the index is an evolving process which constantly incorporates stakeholder feedback. 
  • Significance:
    • Exports are vital for simulating economic growth and development in a country, which necessitates understanding the factors which influence export performance. 

Highlights of the Report:

  • Tamil Nadu has been ranked the ‘One’ State in Export Preparedness Index (EPI) for 2022.
  • It is followed by Maharashtra and Karnataka.
  • Gujarat has been pushed to the fourth slot this time.
  • The report also mentioned that Karnataka and Tamil Nadu have the highest number of GI products being exported.
  • EPI assesses the performance of the States and UTs across four pillars – Policy, Business Ecosystem, Export Ecosystem, and Export Performance.
  • Each pillar is composed of sub-pillars, which in turn capture a state’s performance using relevant indicators.
    • Policy Pillar evaluates states and UTs’ performance based on its adoption of the export-related policy ecosystem at a state and district level as well as the institutional framework surrounding the ecosystem.
    • Business Ecosystem assesses the prevailing business environment in a state/UT, along with the extent of business-supportive infrastructure, and a state/UTs’ transport connectivity.
    • Export Ecosystem focuses on the export-related infrastructure in a state/UT along with the trade support provided to the exporters, and the prevalence of Research and Development in the state/UT to foster innovation.
    • Export Performance is an output-based indicator which gauges the growth of a state’s export over the previous year and analyses its export concentration and footprint on the global markets.
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