Q) “The NITI Aayog has released Export Preparedness Index 2020 to examine the export preparedness and performance of Indian states. What are key findings of the report? What are the challenges in India’s export sector? How can these challenges be addressed?” (250 words)
Answer :
Export Preparedness Index helps examine the export preparedness and performance of Indian states. EPI intends to identify challenges and opportunities; enhance the effectiveness of government policies; and encourage a facilitative regulatory framework.
Key findings of the report:
- Gujarat has topped the Export Preparedness Index 2020 followed by Maharashtra and Tamil Nadu.
- The other states that have made it to the top 10 include Rajasthan, Odisha, Telangana, Haryana, Chhattisgarh, Karnataka and Kerala.
- The coastal states have emerged as the best performers, with six out of eight coastal states featuring in the top 10 rankings.
- Among the Himalayan states, Uttarakhand is the highest, followed by Tripura and Himachal Pradesh.
- Across the Union Territories, Delhi has performed the best, followed by Goa and Chandigarh.
- The average score of Indian states in sub-pillars of Exports Diversification, Transport Connectivity, and Infrastructure (three sub-pillars) was above 50%.
Challenges faced by India’s Export Sector
- Based on the findings of the report, export promotion in India faces three fundamental challenges:
- To Intra- and inter-regional disparities in export infrastructure
- Poor trade support and growth orientation among states.
- Poor R&D infrastructure to promote complex and unique exports.
Measures to overcome challenges
- A joint development of export infrastructure, strengthening industry-academia linkages and creating state-level engagements for economic diplomacy is the way forward.
- These strategies could be supported by revamped designs and standards for local products.
- Innovating tendencies to provide new use cases for local products must be harnessed with adequate support from the Centre.
To achieve the target of making India a developed economy by focusing on ‘Atmanirbhar Bharat’, there is a need to increase exports from all the states and union territories.