EXPORT PREPAREDNESS REPORT 2022
1. Context
Tamil Nadu has pipped Maharashtra and Gujarat to emerge as the top state among coastal states in the Niti Aayog’s Export Preparedness Index 2022.
2. Key takeaways
- Tamil Nadu is followed by Maharashtra, Karnataka, Gujarat, Andhra Pradesh, Odisha, West Bengal and Kerala in that order in the ranking of coastal states, according to the government think tank’s report released on Monday.
- Among hilly/Himalayan states, Uttarakhand has ranked at the top position. It is followed by Himachal Pradesh, Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh and Mizoram in that order.
- Haryana topped the chart among the landlocked regions. It was followed by Telangana, Uttar Pradesh, Punjab, Madhya Pradesh and Rajasthan.
- In the category of union territories/small states, Goa was ranked first. Jammu and Kashmir, Delhi, Andaman and Nicobar and Ladakh were ranked second, third, fourth and fifth, respectively.
- The index can be used by the regions to benchmark their performance against their peers and analyse potential challenges to develop better policy mechanisms to foster export-led growth at the sub-national level. The ranking is based on four main pillars: policy, business ecosystem, export ecosystem and export performance.
- The index is also aimed at promoting competition among all states (coastal, landlocked, Himalayan and UTs) to bring about favourable policies, ease the regulatory framework, create necessary infrastructure and assist in identifying strategic recommendations for improving export competitiveness.
3. Indicators
The Export Preparedness Index (EPI) 2022 is a comprehensive tool that measures the export preparedness of the States and Union Territories (UTs) in India. The index is based on 12 indicators, which are grouped into four pillars:
- Export Ecosystem: This pillar measures the availability of infrastructure, logistics, and other support services that are essential for exports.
- Export Competitiveness: This pillar measures the factors that make a state or UT competitive in the global export market, such as the quality of its products and services, its cost competitiveness, and its access to markets.
- Export Readiness: This pillar measures the state or UT's ability to export, including its awareness of export opportunities, its access to finance, and its capacity to comply with export regulations.
- District Export Hubs: This pillar measures the progress that states and UTs have made in developing their districts as export hubs.
4. Rankings
The EPI 2022 ranks the states and UTs on a scale of 0 to 100, with a higher score indicating a higher level of export preparedness. The top five performers in the EPI 2022 are:
- Tamil Nadu (72.44)
- Maharashtra (71.93)
- Karnataka (71.52)
- Gujarat (70.89)
- Haryana (69.85)
5. Challenges
The EPI 2022 report also identifies some of the key challenges that states and UTs face in improving their export preparedness. These challenges include:
- Lack of infrastructure: Many states and UTs lack the necessary infrastructure, such as roads, ports, and airports, to support exports.
- High cost of doing business: The cost of doing business in India is relatively high, which makes it difficult for businesses to compete in the global export market.
- Compliance with regulations: The compliance requirements for exports can be complex and time-consuming, which can discourage businesses from exporting.
- Access to finance: Many businesses in India lack access to the finance they need to export.
6. Recommendations
The EPI 2022 report makes a number of recommendations for improving the export preparedness of states and UTs. These recommendations include:
- Investing in infrastructure: States and UTs should invest in infrastructure that will support exports, such as roads, ports, and airports.
- Reducing the cost of doing business: The government should take steps to reduce the cost of doing business in India, such as simplifying regulations and reducing taxes.
- Encouraging compliance with regulations: The government should make it easier for businesses to comply with export regulations.
- Providing access to finance: The government should provide more support to businesses in accessing finance for exports
7. Way forward
The EPI 2022 report is a valuable tool for states and UTs that are looking to improve their export preparedness. The report identifies the key challenges that states and UTs face in exporting and makes recommendations for how to overcome these challenges. The EPI 2022 can help states and UTs develop a roadmap for improving their export preparedness and achieving their export goals.
Source: indianexpress
