Export preparedness index (EPI) 2022

Published: 20th Jul, 2023

Context

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

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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