Tamil Nadu has the best potential and ecosystem in India for exports while Maharashtra is at the second place and Karnataka at the third spot, according to the Export Preparedness Index for States/UTs of India released by NITI Aayog on Monday.
Tamil Nadu tops the ranking with an index score of 80.89, followed by Maharashtra at 78.20 and Karnataka with a score of 76.36.
The Export Preparedness Index (EPI) assesses the performance of the states and UTs across four pillars – policy, business ecosystem, export ecosystem, and export performance.
According to NITI Aayog Vice Chairman Suman Bery, the index aims to assist state governments in understanding unique challenges and implementing tailored solutions. “It provides a comprehensive analysis for policy changes and the creation of a favourable export ecosystem using its data-driven approach,” he said.
As per the NITI Aayog report, Karnataka has the best export promotion policy. It also tops in terms of the creation of an institutional framework.
Coastal states have fared the best across all indicators with six out of the top states in the index coming from the coastal region of the country. States like Tamil Nadu, Maharashtra, Karnataka, and Gujarat have shown exceptional performance across pillars with all of them performing the best in at least one pillar.
In terms of strengths, the policy ecosystem is a positive story with multiple states adopting the necessary policy measures to drive exports in their states. At the district level, 73 per cent of districts in the country have an export action plan and over 99 per cent are covered under the ‘One District One Product’ scheme, the report noted.
The report highlighted the wide disparity in export potential and performance in the country. Although many states have fared well in the country with eight states exporting over $15 billion worth of merchandise, there remain 15 states with exports less than $1 billion. Eleven of these states are yet to cross the $100 million mark.
“Efforts need to be made to dissipate this disparity across the country as consistent growth across all regions can help India grow in a holistic manner,” the report noted.
NITI Aayog CEO BVR Subrahmanyam said many states have made significant progress in creating export-oriented policies and strengthening their export ecosystem. “States are fundamental stakeholders in the country’s exports because that is where the action is,” he said.