Gujarat has topped the Niti Aayog's Export Preparedness Index 2020 followed by Maharashtra and Tamil Nadu in the second and third place respectively, according to the government think tank's report released on 26 August 2020. According to the report, six of eight coastal states feature in the top ten rankings, indicating the presence of strong enabling and facilitating factors to promote exports. Among the landlocked states, Rajasthan has performed the best, followed by Telangana and Haryana.
What
  1. Among the Himalayan states, Uttarakhand topped the chart, followed by Tripura and Himachal Pradesh, the report said adding that across Union Territories, Delhi has performed the best, followed by Goa and Chandigarh.
  2. The report noted that Chhattisgarh and Jharkhand are two landlocked states that had initiated several measures to promote exports.
  3. 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 report noted.
  4. Speaking at the launch of the report, Niti Aayog Vice Chairman Rajiv Kumar said exports are an integral part of Aatmanirbhar Bharat and the country will have to keep striving to increase the share of exports in GDP and world trade.
  5. 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."
  6. The government of India has made it clear that production linked incentive (PLI) schemes are critical to promote exports.
  7. There is a need to distinguish between coastal states and landlocked states because conditions for exports in coastal states and landlocked states are very different.
  8. A favourable ecosystem enables a country to contribute significantly to global value chains and reap the benefits of integrated production networks, globally.
  9. 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.
  10. 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.
Flashback
  1. Niti Aayog in partnership with the Institute of Competitiveness released the first Export Preparedness Index (EPI) 2020.
  2. The index ranked states on four key parameters - Policy; Business Ecosystem; Export Ecosystem; Export Performance.
  3. The index also took into consideration 11 sub-pillars -- Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Access to Finance; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.