India’s Export Readiness Landscape: Export Preparedness Index 2024

Why in News ?

Recently, NITI Aayog released the Export Preparedness Index (EPI) 2024, assessing the export readiness and performance of India’s States and Union Territories (UTs) with the objective of strengthening India’s subnational contribution to global trade.

Background: Need for Subnational Export Competitiveness

India’s ambition to emerge as a major global trading nation depends not only on national-level trade policies but also on the export capabilities of its States and Union Territories. Given the vast diversity in economic structures, industrial bases, infrastructure availability, and governance capacity across regions, a uniform export strategy is insufficient.

To address this, NITI Aayog introduced the Export Preparedness Index in 2020 as a diagnostic and benchmarking tool to:

• Identify regional strengths and gaps
• Promote competitive federalism
• Enable evidence-based policymaking for exports

The Export Preparedness Index 2024 is the fourth edition of this index, reflecting India’s evolving export ecosystem.

What is the Export Preparedness Index (EPI) 2024 ?

• The Export Preparedness Index (EPI) 2024 is a comprehensive assessment framework developed by NITI Aayog to evaluate the export readiness of India’s States and Union Territories.
• It measures how effectively subnational governments are enabling exports by considering infrastructure, policies, institutional support, and actual export performance.
• The index recognises that States and UTs are critical drivers of India’s export growth and play a decisive role in achieving national trade targets.

Framework and Coverage of EPI 2024

The EPI 2024 is structured around four major pillars, further divided into 13 sub-pillars and 70 indicators, ensuring a granular and holistic assessment.

Four Pillars and Their Weightage

1. Export Infrastructure (20%)
   1. Physical infrastructure
   2. Logistics connectivity
   3. Trade facilitation facilities
2. Business Ecosystem (40%)
   1. Access to finance
   2. MSME support
   3. Innovation and entrepreneurship
   4. Ease of doing business
3. Policy and Governance (20%)
   1. State export policies
   2. Institutional mechanisms
   3. Trade promotion initiatives
4. Export Performance (20%)
   1. Merchandise and services exports
   2. Growth trends and diversification

This structure ensures a balanced evaluation of both enablers and outcomes of export activity.

Classification of States and Union Territories

To ensure fair comparison, States and UTs are categorised based on size and structural characteristics:

• Large States
• Small States
• North Eastern States
• Union Territories

Within each category, regions are further classified into three groups:

• Leaders: High export preparedness and strong enabling ecosystems
• Challengers: Moderate preparedness with scope for improvement
• Aspirers: Early-stage export ecosystem development

This classification encourages peer learning and targeted policy interventions.

Leading Performers in Export Preparedness Index 2024

Under EPI 2024, the following States and UTs have emerged as leading performers in their respective categories:

Large States

• Maharashtra
• Tamil Nadu
• Gujarat
• Uttar Pradesh
• Andhra Pradesh

Small States, North Eastern States & Union Territories

• Uttarakhand
• Jammu and Kashmir
• Nagaland
• Dadra and Nagar Haveli & Daman and Diu
• Goa

These regions have demonstrated strong institutional frameworks, improved infrastructure, and sustained export growth.

Significance and Way Forward

The Export Preparedness Index 2024 strengthens cooperative and competitive federalism by motivating States and UTs to enhance their export ecosystems.

It provides a roadmap for:

• Improving logistics and trade facilitation
• Strengthening MSME participation in exports
• Aligning state-level policies with national trade objectives

Going forward, focused capacity building, sector-specific export strategies, digital trade infrastructure, and integration with global value chains will be essential for improving India’s overall export competitiveness.