Export Preparedness Index (EPI) 2020_ UPSC

Export Preparedness Index (EPI) 2020


NITI Aayog releases report on Export Preparedness Index (EPI) 2020

      WHY IN NEWS:

Hot from PIB !



For PRELIMS go through the aim , focus and the best performers in this report.

For MAINS take a look at challenges and way a head with export councils and a better policy framework .



Export Preparedness Index (EPI) 2020 UPSC


NITI Aayog in partnership with the Institute of Competitiveness released the Export Preparedness Index (EPI) 2020 today.


  • The first report to examine export preparedness and performance of Indian states.

The Export Preparedness Index is a data-driven effort to identify the core areas crucial for export promotion at the sub-national level.


  • EPI intends to identify challenges and opportunities; enhance the effectiveness of government policies.
  •  EPI 2020 also encourages a facilitative regulatory framework.


  1. Policy
  2. Business Ecosystem
  3. Export Ecosystem
  4. Export Performance.

Export Preparedness Index (EPI) 2020 UPSC


  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.


  • The Indian economy holds immense potential to become a strong exporter on the world stage.
  • To realize this potential, it is crucial that India turns to its states and union territories and makes them active participants in the country’s export efforts.

In an attempt to realize this vision, the Export Preparedness Index 2020 evaluates states’ potentials and capacities.

  • It is hoped that the Index will guide all stakeholders towards strengthening the export ecosystem at both the national and sub-national levels.
  • The Index would be a helpful guide for the state governments to benchmark regional performance with respect to export promotion.


The 4 pillars and the rationale behind selection of each of them are given below:

  1. POLICY : A comprehensive trade policy provides a strategic direction for exports and imports.
  2. BUSINESS ECOSYSTEM : An efficient business ecosystem can help states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
  3. EXPORT ECOSYSTEM : This pillar aims to assess the business environment, which is specific to exports.
  4. EXPORT PERFORMANCE :  This is the only output-based pillar and examines the reach of export footprints of States and Union Territories.


  • EPI has shown is that most Indian states performed well on average across the sub-pillars of Exports Diversification, Transport Connectivity, and Infrastructure.

The average score of Indian states in these three sub-pillars was above 50%.

  • The report also highlights that export orientation and preparedness are not just restricted to prosperous states.
  • Even emerging states can undertake dynamic export policy measures, have functioning promotional councils, and synchronize with national logistical plans to grow their exports.


  • Overall, most of the Coastal States are the best performers.

Gujarat, Maharashtra and Tamil Nadu occupy the top three ranks, respectively.

  • Six of eight coastal states feature in the top ten rankings, indicating the presence of strong enabling and facilitating factors to promote exports.

In the landlocked states, Rajasthan has performed the best, followed by Telangana and Haryana.

  • Among the Himalayan states, Uttarakhand is the highest, followed by Tripura and Himachal Pradesh.
  • Across the Union Territories, Delhi has performed the best, followed by Goa and Chandigarh.
  • Chhattisgarh and Jharkhand are two landlocked states that had initiated several measures to promote exports.
  • Other states facing similar socio-economic challenges can look at the measures taken by Chhattisgarh and Jharkhand and try to implement them to grow their exports.

This shows that a focused development of such baskets (like spices) can drive exports and also improve farmer income.


India faces three fundamental challenges as per the report :

  • Poor trade support and growth orientation among states

Intra- and inter-regional disparities in export infrastructure

  • Poor R&D infrastructure to promote complex and unique exports.


  • The EPI provides invaluable insights on how states can attain this goal.
  • The final framework of the EPI was based on essential feedback from states, UTs and organizations like EXIM Bank, IIFT and DGCIS.

The data has been primarily provided by state governments.

  • For some of the indicators, RBI, DGCIS and Central ministries were consulted.

      IASbhai WINDUP: 

There is a need to emphasize on key strategies to address these challenges:

  • Indian states should also focus on other key components in order to improve export competitiveness.
  • A  joint development of export infrastructure
  • Strengthening industry-academia linkages

Creating state-level engagements for economic diplomacy.

These strategies could be supported by revamped designs and standards for local products and by harnessing the innovating tendencies to provide new use cases for such products, with adequate support from the Centre.

SUGGESTED READING : https://www.youtube.com/watch?v=pQlW73yV4lY 
     SOURCES:THE HINDU & PIB | Export Preparedness Index (EPI) 2020

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