Export Preparedness Index 2021
Part of: GS-Prelims and GS-III: Indian Economy & its challenges
In News: NITI Aayog, in partnership with the Institute of Competitiveness, released the Export Preparedness Index (EPI) 2021.
- A comprehensive analysis of India’s export achievements.
- The index can be used by states and union territories (UTs) to benchmark their performance against their peers and analyse potential challenges to develop better policy mechanisms to foster export-led growth at the subnational level.
- The Export Preparedness Index is a data-driven endeavour to identify the fundamental areas critical for subnational export promotion.
Three major challenges to India’s export promotion:
- Intra- and inter-regional differences in export infrastructure
- Weak trade support and growth orientation across states
- Lack of R&D infrastructure to promote complex and unique exports
The EPI ranks states and UTs on 4 main pillars—
- Policy: A comprehensive trade policy provides a strategic direction for exports and imports.
- Business Ecosystem: An efficient business ecosystem can help attract investments and create an enabling infrastructure for businesses to grow.
- Export Ecosystem: This pillar aims to assess the business environment, which is specific to exports.
- Export Performance: This is the only output-based pillar and examines the reach of export footprints of states and union territories.
- Export Promotion Policy
- Institutional Framework
- Business Environment
- Transport Connectivity
- Access to Finance
- Export Infrastructure
- Trade Support
- R&D Infrastructure
- Export Diversification
- Growth Orientation
EPI 2021 will help the states and UTs in a long way to plan and execute sound export-oriented policies for ensuring a conducive export ecosystem, to make maximum utilization of their export potential.
News Source: PIB
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