Export Preparedness Index (EPI) 2021 – UPSC Prelims

Export Preparedness Index for 2021:
  • NITI Aayog, in partnership with the Institute of Competitiveness, released the Export Preparedness Index (EPI) 2021.
  • The report is a comprehensive analysis of India’s export achievements.
  • The Export Preparedness Index is a data-driven endeavour to identify the fundamental areas critical for subnational export promotion.
  • The 4 pillars and the rationale behind their selection are given below:
    • Policy: A comprehensive trade policy provides a strategic direction for exports and imports.
    • Business Ecosystem: An efficient business ecosystem can help attract investments and create an enabling infrastructure for businesses to grow.
    • Export Ecosystem: This pillar aims to assess the business environment, which is specific to exports.
    • Export Performance: This is the only output-based pillar and examines the reach of export footprints of states and union territories.
Findings of Export Preparedness Index for 2021:
  • Gujarat has been named India’s top state in terms of export preparedness for the second year in a row as per the release by the NITI Aayog.
  • Maharashtra, Karnataka, Tamil Nadu were ranked second, third and fourth in the index.
  • The Coastal States with higher industrial activity and access to seaports account for a majority of India’s exports.
  • Challenges to Indian Exports: The EPI identifies three major challenges to India’s export promotion efforts:
    • Intra- and inter-regional differences in export infrastructure,
    • Weak trade support and growth orientation across States,
    • Lack of R&D infrastructure to promote complex and unique exports.
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