Context:

Recently, the NITI Aayog released the third edition of the report titled ‘Export Preparedness Index (EPI) 2022’ for States/UTs.

About Export Preparedness Index (EPI) 2022:

• It is a comprehensive tool that measures the export preparedness of the States and UTs in India.
• Aim:
  • To undertake a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.
  • To highlight the achievements of states/UTs and encourage peer learning among the states/UTs to uphold the spirit of competitive federalism.

Pillars of Evaluation: The index evaluates the performance of states and UTs across four pillars:

• Policy Pillar: Assesses adoption of export-related policy ecosystems at state and district levels, along with the institutional framework surrounding the ecosystem.
• Business Ecosystem: Evaluates the prevailing business environment, business-supportive infrastructure, and transport connectivity in a state/UT.
• Export Ecosystem: Focuses on export-related infrastructure, trade support to exporters, and Research and Development (R&D) activities fostering innovation.
• Export Performance: Gauges the growth of a state’s export over the previous year, export concentration, and footprint on global markets.

Key Findings of the Index:

Significance: 

• Performance Analysis: The Export Preparedness Index (EPI) allows regions to compare their export performance with others and identify areas where they can improve.     
• Evidence based policy making: It helps them analyze potential challenges and develop better policies to promote export-driven growth at the local level. 

News Source: PIB