Key Facts and Data Points

  • EPI Launch: First introduced in 2020; the 2024 edition is the latest update.
  • Coverage: Assesses all States and Union Territories (UTs) at state and district levels.
  • Structure: 4 pillars, 13 sub‑pillars, 70 indicators.
  • Pillars: Export Infrastructure, Business Ecosystem, Policy & Governance, Export Performance.
  • Weightage: Business Ecosystem – 40%; each of the other three pillars – 20%.
  • Classification of States/UTs:
  • Leaders: High export preparedness.
  • Challengers: Moderate preparedness with scope for improvement.
  • Aspirers: Early‑stage export ecosystems.
  • Top‑Performing Large States (2024): Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, Andhra Pradesh.
  • Top‑Performing Small/North‑Eastern States & UTs: Uttarakhand, Jammu & Kashmir, Nagaland, Dadra & Nagar Haveli and Daman & Diu, Goa.
  • Target: Achieve USD 1 trillion in merchandise exports by 2030 and realize Viksit Bharat @2047.

Background and Context

  • The Export Preparedness Index (EPI) was conceptualised by NITI Aayog to link federalism with economic performance, recognizing that states are pivotal in export generation, job creation, and integration into global value chains.
  • The index aligns with flagship programmes such as Make in India, Atmanirbhar Bharat, and the MSME Development agenda, providing a data‑driven roadmap for state‑level interventions.
  • By categorising states into Leaders, Challengers, and Aspirers, the EPI promotes peer learning and co‑operative federalism, encouraging states to emulate best practices.

Significance for India / Governance / Policy

  • Policy Formulation: Enables the Centre to tailor export‑related policies (e.g., infrastructure subsidies, finance schemes) based on state‑specific gaps.
  • Resource Mobilisation: Highlights priority areas for investment in ports, logistics, and digital infrastructure.
  • Economic Growth: Strengthening the business ecosystem can boost MSME participation, enhance competitiveness, and increase export‑linked employment.
  • Strategic Goal: Contributes directly to the USD 1 trillion export target, a key component of India's ambition to become a $5 trillion economy by 2025‑26.
  • International Trade: Improves India's standing in global trade rankings by fostering diversified export baskets across states.

Related Constitutional / Legal Provisions

  • Article 246 of the Constitution delineates the distribution of powers between the Union and States; the EPI underscores the importance of State competence in trade and commerce (State List, Entry 25).
  • Goods and Services Tax (GST) Act, 2017 – facilitates seamless intra‑state and inter‑state movement of goods, impacting export logistics.
  • Foreign Trade Policy (FTP) 2015‑20 & 2020‑25 – provides the regulatory framework within which state‑level export initiatives operate.
  • MSME Development Act, 2006 – supports the MSME sector, a critical component of the Business Ecosystem pillar.

How States Can Improve Their EPI Scores

  • Upgrade Export Infrastructure: Develop dedicated cargo terminals, improve road/rail connectivity to ports.
  • Strengthen Business Ecosystem: Provide easy credit, foster innovation clusters, and streamline regulatory approvals.
  • Policy & Governance Reforms: Implement single‑window clearance, adopt digital customs procedures, and ensure policy stability.
  • Boost Export Performance: Identify high‑potential sectors, promote value‑addition, and facilitate market access through trade missions.

Source: Press Information Bureau (PIB)