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Why in News?

Recently, NITI Aayog has released the 3rd edition of Export Preparedness Index (EPI) for States/UTs of India for the year 2022.

The report discusses India’s export performance amid the prevailing global trade context in FY22, followed by an overview of the country’s sector-specific export performance.

What is the Export Preparedness Index?

About:
EPI is a comprehensive tool which measures the export preparedness of the States and UTs in India.
Exports are vital for simulating economic growth and development in a country, which necessitates understanding the factors which influence export performance.
The index undertakes a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.
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 UTs.
Sub Pillars:
The index also took into consideration 10 sub-pillars: Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.
Features: The EPI is a data-driven effort to identify the core areas crucial for export promotion at the sub-national level (states and union territories).
It explores and highlights India’s export potential by examining the different contributions made by each state and union territories.

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