Niti Aayog's 2022 Export Preparedness Index

Tamil Nadu has emerged as India’s most export-competitive state, topping Niti Aayog’s Export Preparedness Index 2022.

The EPI is a comprehensive tool for assessing the export readiness of India’s states and union territories (UTs).
The index examines different characteristics, allowing for the identification of regional strengths and weaknesses and providing vital insights for better policy creation.

Policy: This pillar assesses a state’s trade policy effectiveness, offering strategic direction for both exports and imports.
Business Ecosystem: The effectiveness of a business ecosystem is critical for attracting investments and creating an enabling environment for startups and entrepreneurship.
Export Ecosystem: This pillar evaluates the export-specific business environment, assessing the level of assistance and facilitation provided to exporters.
Export Achievement: This pillar’s single output-based metric investigates the reach of export footprints in states and UTs, quantifying real export achievements.
Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation are among the ten sub-pillars.

Export-Competitive State Performance:

Top Contenders: Maharashtra, Karnataka, and Gujarat (last year’s leader) were close behind, with Haryana taking fifth place.
Dominance of Coastal States: Coastal states dominated the top ranks, occupying four of the top five positions. Andhra Pradesh was also ranked ninth.
Gujarat’s Top Merchandise Exporter: Gujarat is the major merchandise exporter, accounting for one-third of total Indian merchandise exports.
Top Five Exporting States: India’s top five exporters are Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh.
Dominance of Seven States: Only seven states generate an amazing 75% of India’s total exports.

Reasons for an increase in exports

Policies for Export Promotion: Export promotion programmes have been implemented at both the state and district levels in the top-performing states.
Diversified Export Basket: These states’ export baskets are diverse, demonstrating their global influence.
Promoting Unique Products: Successful states promote products that are unique to their region. Tamil Nadu and Karnataka are the leaders in geographical indication (GI) goods exports.

The Export Performance of India

Despite pandemic problems and supply-side issues, India’s commodities exports remained strong, reaching an all-time high of $447 billion in FY23.
Target for FY24: Due to global headwinds, the government has refrained from announcing a particular export target for FY24, but may aim for $450 billion to $500 billion in goods exports.
Services exports totaled $323 billion in FY23, raising India’s overall exports to $770 billion.

Source: https://www.niti.gov.in/sites/default/files/2023-07/Export-Preparedness-Index-2022_0.pdf