Export preparedness index, 2020

Nov 20, 2020

Niti Aayog has released this report in partnership with the Institute of Competitiveness. The main purpose of releasing this report is to examine export preparedness and performance of Indian states. It can be viewed as a part of aatmanirbhar Bharat mission. This report will examine and rank the states in order of their export production and infrastructure so in that manner which is at the top will try to remain at the top and will focus more on increasing the gap from others. In contrast, those states which are below in ranking can follow and learn from those who are higher in rank. Further, this report will help identify challenges and opportunities; it will also help to increase the effectiveness of government policies and encourage a regulatory facilitation framework for exports.

Importance of Export preparedness index, 2020

These reports do not harm but make Country stronger as a unit at a global scale. We are continuously looking for self-reliant India where there will be no dependency on any other country for raw material, food grains, medicines, technology, artificial intelligence, guns & missiles. This can only be possible if we can increase our production by proper utilisation of natural and non-natural resources so that we will import less and export more as this will help us in reviving our Indian economy at global level, we already have the human resources, a good number of machines what we need to do is to follow proper mechanism to increase export.

Further, this index mentions four pillars as ranking parameters –


2. Business ecosystem,

3. Export ecosystem

4. Export performance.

As far as policy is a concern, it includes comprehensive trade & commerce policies providing strategic guidelines for exports and imports. If we talk about the business ecosystem, so it is very much concern with investment and new-start-up facilitated by public and private investment whereas if we talk about the export ecosystem, it includes the mechanism where there should be access to business environment specific to exports, last but not least as far as export performance is a concern, this is the result based parameter or in better language result oriented as it examines the outreach of export and contribution of states and Union Territories.

This index further bifurcates eleven sub-pillars as ranking parameters. They are –

  1. Export promotion policy
  2. Institutional framework
  3. Business environment
  4. Infrastructure
  5. Transport connectivity
  6. Access to finance
  7. Export infrastructure
  8. Trade support
  9. R&D infrastructure
  10. Export diversification
  11. Growth orientation

Now we need to understand that the basic feature is to make a coordinating system of export within the states and Union territories and to work upon the crucial factor of export promotion at subnational level as this index will help States to give a tough fight to another state in a matter of Export promotion and it will also act as a guide to states where they can see themselves setting a new benchmark every year.

Ranking and performance of State and Union Territories-

Overall Export Preparedness Index 2020 was topped by Gujarat followed by Maharashtra and Tamil Nadu. As far as landlocked states are concerned the list is topped by Rajasthan followed by Telangana and Haryana In-between the Himalayan states Uttarakhand topped the chart followed by Himachal Pradesh and Tripura, Delhi topped the index in all Union territories.

It also put forth challenges in export promotion India is facing It mentions three prominent challenges which need to conquer upon these are –

Intra- and inter-regional disparities in export infrastructure, i.e. there is no smooth or uniform mechanism which needs to be followed as there is no set export infrastructure.

Poor trade support and growth orientation among states, there is no medium of cooperation between states.

Poor research & development infrastructure to promote complex and unique exports.


Export Preparedness Index report is the way to outreach for best, a state which is below in ranks will work continuously to climb up the ladder while which are at the top will try to increase the gap further, this competitive spirit between states and Union territories to become expert in the export sector will strengthen India’s export system as a whole This report shows how coastal areas are performing better than landlocked states due to the availability of ports and easy transportation, so it will surely make think for another alternative where the state can be export expert. It further mentions that a proper analysis state can work as per availability of sources, either they can opt for export of one single commodity by producing large quantities. Also, the increase in exports can help in generating employment, and more exports will do the deed of making India Aatmanirbhar.