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EXPORT PREPAREDNESS INDEX 2021: NITI AAYOG
EXPORT PREPAREDNESS INDEX 2021: NITI AAYOG
Why in News?
Gujarat has been named India’s top State in terms of export preparedness for the second year in a row as per the Export Preparedness Index (EPI) 2021 released by the NITI Aayog.
About
The main aim of the report is to identify challenges and opportunities, enhance the effectiveness of government policies and encourage a facilitative regulatory framework for export.
The index entails four pillars, eleven sub pillars and sixty indicators .
The idea behind the index is to create a benchmark to rank these states and UTs to help them individually promote a conducive export environment in the region.
Four Pillars:
- Policy: A comprehensive trade policy providing a strategic direction for exports and imports.
- Business Ecosystem: An efficient business ecosystem helping states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
- Export Ecosystem: Assess the business environment, which is specific to exports.
- Export Performance: This is the only output-based parameter and examines the reach of export footprints of States and Union Territories.
State performance
- Himalayan region – Uttarkhand has performed well and Manipur was the worst performing state.
- Coastal – Gujarat has performed well and Andhra Pradesh was the worst performing state.
- UT – Delhi was the best performing state and Puducherry was the worst performing state.
Importance of the EPI
- Examines the Export Performance of States and UTs.
- Helps in Identifying Obstacles to Export
- Guidance to the state government.
- Instil Competition
- Promotion policy
- Regional Performance
- Providing export environment
- Infrastructure development
Suggestion to Increase Export
- Private sector can also play an important role in export promotion.
- Emphasis on key strategies
- Infrastructure development
- Need for export diversification
- Market Concentration
- Good Investment
- Improving efficiency
- State – level engagment
- Strenghthing Indutry
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