Context:

Recently, NITI Aayog released the Export Preparedness Index (EPI) 2024, the fourth edition of the index since its inception in 2020. The EPI assesses the export readiness of Indian States and Union Territories (UTs). The Index aligns with India’s target of achieving USD 1 trillion in merchandise exports by 2030 and supports the long-term vision of Viksit Bharat @2047.

Framework and Pillars:

EPI 2024 Structure

·         The Index is structured around 4 pillars, 13 sub-pillars, and 70 indicators, enabling a granular and comparative assessment of export preparedness across States and UTs.

Pillars and Components

1.       Export Infrastructure (20%)

o    Trade and logistics infrastructure

o    Connectivity and utilities

o    Industrial infrastructure

2.      Business Ecosystem (40%)

o    Macroeconomic stability

o    Cost competitiveness

o    Human capital development

o    Access to finance

o    MSME ecosystem

o    Industrial and innovation environment

3.      Policy and Governance (20%)

o    State-level policy support

o    Regulatory environment and compliance

4.     Export Performance (20%)

o    State-level export trends

o    Export promotion and facilitation

o    Export diversification and market access

·         The 2024 edition introduces new dimensions, including macroeconomic stability, access to finance, human capital development, and MSME strengthening. Existing indicators have been refined to enhance policy relevance and analytical depth.

Classification of States and Union Territories:

• • States and UTs are classified into Large States, Small States, North-Eastern States, and UTs.
  • Within each category, regions are further grouped as:

• • The Index places strong emphasis on district-level strategies, promoting place-based development and deeper integration into global value chains.

Top Performing States and Union Territories:

Leaders among Large States

·         Maharashtra

·         Tamil Nadu

·         Gujarat

·         Uttar Pradesh

·         Andhra Pradesh

Leaders among Small States, North-Eastern States, and UTs

·         Uttarakhand

·         Jammu and Kashmir

·         Nagaland

·         Dadra and Nagar Haveli and Daman and Diu

·         Goa

These States and UTs demonstrate strong performance across infrastructure, business environment, policy support, and export outcomes, serving as benchmarks for other regions.

Significance of EPI 2024:

• • Acknowledges the diversity of economic structures across States and UTs.
  • Supports evidence-based policy formulation by identifying strengths and structural gaps in export ecosystems.
  • Emphasizes district-level competitiveness, translating national export objectives into actionable local strategies.
  • Encourages employment generation, reduction of regional disparities, and deeper integration into global value chains amid rising global volatility.
  • Highlights product quality, cost competitiveness, and strong institutional frameworks as critical determinants of success in global trade.

Policy Implications:

• • Strengthening export infrastructure and reducing logistics costs are essential to improving competitiveness.
  • Enhancing institutional capacity, access to finance, and human capital can accelerate export preparedness.
  • District-focused strategies promote inclusive growth and help address regional imbalances.
  • Reinforces India’s broader objectives of export diversification, global trade integration, and achieving USD 1 trillion in merchandise exports by 2030.

Conclusion:

The Export Preparedness Index 2024 underscores the growing recognition that state- and district-level preparedness is central to India’s export-led growth strategy. By identifying structural gaps and policy opportunities, the Index offers actionable insights to strengthen India’s global trade competitiveness, support employment generation, and advance the vision of Viksit Bharat @2047.