The slogan given the Government is “Think locally and act globally” along with latest ideology, “Vocal for Local”, to develop India to become a key player in the global supply chain.ĮPI intends to evaluate the readiness of the states in terms of their export potential and their performance. The Government has focused on creating export hubs in each district depending upon the local products made there. Therefore, the efforts of Central Government cannot alone determine the export, it requires active participation from state level authorities and identification of export focussed areas based on the state’s core growth drivers. This is because a one-size-fit-all policy will not work for all the states owing to their different characteristic strengths and competitive advantages. Some states have done exceptionally well while others need a more focused analysis to develop their export markets. In recent times, there has been an increase in the number of Indian states participating in export related activities. It added that the state’s Gross State Domestic Product (GSDP) is highly correlated with its export share in GSDP. The survey established that the states that trade the most are the most competitive and run the largest trade surplus. It was seen that around 70 per cent of the India’s export was dominated by five states – Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Telangana. India registered a trade surplus of US$ 14.06 billion during April-July 2020. In 2020-21 (till July 2020), total export from India (merchandise and services) stood at US$ 141.82 billion, while total import was estimated at US$ 127.76 billion according to data from the Ministry of Commerce and Industry. It was seen that the contribution of export from merchandise was US$ 314.31 billion and from services was US$ 214.14 billion in 2019-20. In FY20, total export from India (merchandise and services) stood at US$ 528.45 billion, while total import estimated at US$ 598.61 billion according to data from the Ministry of Commerce and Industry. The Government has planned to improve exports through trade policies and reforms such as Goods and Services Tax and by incentive creation through the Merchandise Exports Scheme, Service Exports from India Scheme and Trade Infrastructure for Export Scheme. Though it was seen that Prime Minister Mr Narendra Modi has sought to solve the problem by exhorting Indians to become “Aatmanirbhar” or self-reliant, one of the main components to strengthen domestic demand and supply chains. The domestic demand was increasing which might strengthen imports faster than exports, leading to a widening deficit. Manufacturing in the country was halted, thereby effecting the export badly. There has been a massive shift in the global trade because of the ongoing COVID-19 pandemic. The structure of the EPI includes four pillars – policy, business ecosystem, export ecosystem, and export performance – and 11 sub-pillars – export promotion policy, institutional framework, business environment, infrastructure, transport connectivity, access to finance, export infrastructure, trade support, research and development (R&D) infrastructure, export diversification, and growth orientation. The idea of developing such report came in 2019 at NITI Aayog. The Index ranks States and UT on critical parameters required for promoting the country’s exports. The report was prepared in partnership with the Institute of Competitiveness. Thus, NITI Aayog, the think tank of the country, took a substantial step by developing the first-ever Export Preparedness Index (EPI) 2020 for Indian states. The necessary policy changes would need strong engagement with the States and UT to identify export opportunities and develop their institutional structures. India’s export will require a boost through various policy mechanisms, including the improvement of Ease-of-Doing-Business (EoDB), promoting size and scale as well as adapting to global standards. The efficient strategy can help the country in achieving the required double-digit growth. India can increase its efficiency with a focused policy shift towards integration with major global supply chains. India plans to become a US$ 5 trillion economy by 2024 and the target is basically linked with export-oriented approach. India is a vast and geographically diverse country with 28 States and 8 Union Territories (UT).
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