# RanchiMall Content Collaboration Output

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What is the report about and its importance

Export Preparedness Index (EPI) 2020. This is the first report to examine export preparedness of the states of India. The EPI is a data-driven effort to identify the core areas crucial for export promotion at the sub-national level of states and union territories. The index would be a helpful guide for the state government to set a benchmark of regional performances with respect to export promotion. Also, deliver key policy insights on how to improve and enhance the exports. The Index ranked States on four key parameters: 1. A comprehensive trade "Policy" providing a strategic direction for exports and imports. 2. An "Efficient Business Ecosystem" helping States to attract investments and create an equipping infrastructure for individuals to initiate start-ups. 3. Export Ecosystem: Assess the business environment, which is specific to exports. 4. Export Performance: This is the only output-based parameter and examines the reach of export footprints of States and Union Territories. The index also took into consideration 11 sub-pillars including export promotion policy, infrastructure, transport connectivity, export infrastructure, export diversification, institutional framework, business environment, access to finance, trade support, growth orientation and R&D infrastructure. Key Highlights:- • While Gujarat topped the index, Maharashtra and Tamil Nadu came second and third respectively. • Overall, six of the eight coastal states featured among the top ten states, performing the best across India. This indicates the presence of strong enabling and facilitating factors to promote exports in the coastal areas of the country. • Uttarakhand performed the best among the Himalayan states, followed by Tripura and Himachal Pradesh. • Delhi performed the best across the Union Territories, followed by Goa and Chandigarh. • Among the landlocked states, Rajasthan performed the best followed by Telangana and Haryana. • Two other landlocked states- Chhattisgarh and Jharkhand were also mentioned in the report for initiating several measures to promote exports. By stating their example, the report highlighted that export orientation and preparedness is not restricted to only prosperous states. • The report stated that other states facing similar socio-economic challenges can look at the measures taken up by Chhattisgarh and Jharkhand and try to implement them to grow their exports.

What can other states learn from Gujarat

During the release of the report, NITI Aayog Vice Chairman Rajiv Kumar said that "exports are an integral part of Aatmanirbhar Bharat and India will have to continue to strive to increase the share of exports in GDP and world trade." He said that we will try to double India's share in world trade in the coming years. Gujarat has topped the Niti Aayog’s Export Preparedness Index 2020 followed by Maharashtra and Tamil Nadu, according to the government Think tank’s report released. The EPI index also took into consideration 11 sub-pillars including export promotion policy, infrastructure, transport connectivity, export infrastructure, export diversification, institutional framework, business environment, access to finance, trade support, growth orientation, research and development infrastructure. Exporters from Gujarat have welcomed the development. At present, 70 per cent of the country's export has been dominated by five states including Gujarat. Gujarat has topped the index with a strong display in various sub-pillars such as Export promotion policy, Business Environment and Infrastructure. Gujarat had also topped the ranking of the World Bank’s ease of doing business earlier. Gujarat has revealed comparative advantage in the exporting activity over the other states since, as per GITCO Study (November 2001), more than one-fifth of the exports of the country originate from Gujarat. Gujarat has the revealed comparative advantage in ground-nuts, oilmeals, castor oil, poultry & dairy product, spices, sesame & niger seeds, processed food & vegetables & fruits, cotton yarn & fabric, man-made textiles, handicrafts, and cotton raw including waste. Fresh fruits & vegetables, floriculture, and fish are not the areas of strength for Gujarat so far. Exports of agri-products originating from Gujarat represent excess supply rather than exclusive supply to the foreign markets. The prospects of the domestic demand and production of the agricultural sector in Gujarat are examined. The dismal picture of the declining real income in Gujarat agriculture during the late nineties is not supported by several other evidences. On the contrary, Gujarat has a very vibrant and responsive agricultural sector. According to the reports, other states facing similar socio-economic challenges can look at the measures taken by Chhattisgarh and Jharkhand and try to implement them to grow their exports. The export promotion in India faces three fundamental challenges: intra and inter regional disparities in export infrastructure, poor trade support, growth orientation among states, poor research and development infrastructure to promote complex and unique exports. Niti Aayog CEO Amitabh Kant said that the rapid growth of exports is a crucial component for long-term economic growth. He further added saying that a favourable ecosystem enables a country to contribute significantly to global value chains and reap the benefits of integrated production networks, globally. The report stated that strategies can be supported by revamped designs and standards for local products with adequate support from the central government. It further noted that to make India a developed economy and an 'Aatmanirbhar Bharat', it is important to increase exports from all the states and union territories. Thus, there is a need to focus on key strategies to address these challenges such as strengthening industry-academia linkages, creating state-level engagements for economic diplomacy and joint development of export infrastructure. The Niti Aayog Vice Chairman pointed out that India's per capita exports are USD 241, compared to South Korea's USD 11,900 and China's USD 18,000, so there is a huge potential for growth of India's exports, he said adding "states must look at creating a separate department for exports promotion." India's merchandise exports have witnessed growth from USD 275.9 billion in 2016-17 to USD 303.5 billion in 2017- 18, to USD 331.0 billion in 2018-19. The final framework of the EPI was based on essential feedback from states, UTs and organizations like EXIM Bank, IIFT and DGCIS. The data has been primarily provided by state governments. For some of the indicators, RBI, DGCIS and Central ministries were consulted. However, the COVID-19 crisis dealt a major blow to the current fiscal. Consequently, India's exports shrank by 60 per cent in April 2020.

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