Context
Gujarat has topped the Niti Aayog rankings for the second year in a row “s Export Preparedness Index 2021, which is intended to assess states’ preparation in terms of export potential and performance.
What is the Export Preparedness Index (EPI) 2021?
- The Export Preparedness Index (EPI) 2021 is released by NITI Aayog, in partnership with the Institute of Competitiveness.
- Aim: To examine export readiness and export performance of the Indian States and Union Territories.
- The objectives of the index are to instil competition among all Indian states to bring about-
- Favourable export-promotion policies.
- Ease the regulatory framework to prompt subnational export promotion.
- Create the necessary infrastructure for exports.
- Assist in identifying strategic recommendations for improving export competitiveness.
- The index ranks states and UTs on 4 main pillars and 11 sub-pillars. The four pillars include-
- Policy- A comprehensive trade policy provides a strategic direction for exports and imports.
- Business Ecosystem- It examines the business ecosystem, as an efficient business ecosystem can help attract investments and create an enabling infrastructure for businesses to grow.
- Export Ecosystem- It aims to assess the business environment, specific to exports.
- Export Performance- It examines the reach of export footprints of states and union territories.
Rankings of the index
- States: Gujarat has retained the top position in the index, followed by Maharashtra and Karnataka.
- Union Territories: Delhi has topped the index, followed by Goa.
- The index has found that most of the ‘Coastal States’ are the best performers.
- The top-six states in India —Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana —contribute 75% of India’s overall exports.
Significance
- 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
About NITI Aayog
- NITI Aayog or the National Institution for Transforming India is a policy think tank of the Indian government.
- It provides inputs regarding the different programmes and policies of the government.
- NITI Aayog gives relevant advice to the centre and state governments as well as to the Union territories.
- This institution was formed in the year 2015 through a resolution of the Union cabinet and is chaired by the Honourable Prime Minister of India and the Chief Ministers of all states and Union territories along with the legislatures and Lt. Governors of other Union Territories.
- The NITI Aayog plays an important role in designing the strategies for the long term policies and programmes put forth by the government of India.
- This institution replaced the planning commission which was instituted in 1950.
- By taking this step, the government of India aimed at providing a common platform for all the states to get together and act in national interest while also serving the needs of the people in a much better way.
- NITI Aayog has been a revolutionary institution which fosters cooperative federalism.
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