SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
NITI Aayog | Ministry of Commerce and Industry
NITI Aayog has released the fourth edition of the Export Preparedness Index (EPI) 2024, a comprehensive data-driven framework designed to assess the export readiness of India’s States and Union Territories (UTs). The index evaluates subnational export ecosystems across four critical pillars: Policy, Business Ecosystem, Export Infrastructure, and Export Performance. Aligned with India’s ambitious target of achieving USD 1 trillion in merchandise exports by 2030, the EPI 2024 identifies structural gaps and growth levers to enhance global competitiveness at the state and district levels.
Comparative Framework and Performance Rankings
Pillar Weightage: The index assigns 40% weight to the Business Ecosystem, followed by 20% each for Policy, Export Infrastructure, and Export Performance pillars.
Top Large States: Maharashtra emerged as the leading performer, followed by Tamil Nadu, Gujarat, Uttar Pradesh, and Andhra Pradesh.
Regional Leaders: Uttarakhand topped the category for Small States, North Eastern States, and UTs, with Jammu and Kashmir and Nagaland also ranking among the leading performers.
Categorization Strategy: States and UTs are classified as Leaders, Challengers, and Aspirers to encourage peer learning and targeted policy interventions based on their current stage of development.
Strategic Enhancements and District Focus
New Dimensions: The 2024 edition introduces refined indicators for macroeconomic stability, cost competitiveness, financial access, and the MSME ecosystem to improve analytical depth.
District-Led Growth: Greater emphasis is placed on districts as core units of competitiveness, translating national objectives into local value-chain linkages and industrial clusters.
Sub-pillar Disaggregation: The framework evaluates 13 sub-pillars including Trade & Logistics Infrastructure, Human Capital, and Institutional Capacity to provide granular policy insights.
What is ‘Export Preparedness’ in the context of subnational governance? It refers to the holistic readiness of a State or UT to engage in global trade, encompassing its regulatory environment, physical infrastructure, and the ability of its local firms to enter international markets. Unlike mere export outcomes, Export Preparedness evaluates the foundational “ecosystem” variables—such as electricity availability, R&D intensity, and ease of credit for MSMEs—that determine whether a region can sustain and scale its export trajectory despite global volatility. By measuring these drivers, NITI Aayog provides a roadmap for states to move beyond traditional sectors and integrate deeper into Global Value Chains (GVCs).
Policy Relevance
The EPI 2024 serves as a critical strategic tool for achieving the Viksit Bharat @2047 vision by promoting cooperative and competitive federalism in India’s trade sector.
Strategic Impact for India:
Bridging Regional Disparities: By identifying “Aspirer” states, the index directs institutional focus toward regions that require enhanced connectivity and industrial support to unlock their export potential.
Enhancing MSME Competitiveness: The inclusion of the MSME ecosystem as a key sub-pillar ensures that policy support reaches the grassroot level, fostering inclusive growth and local employment.
Institutional Capacity Building: The framework encourages states to adopt robust export policies and trade facilitation measures, creating a more predictable and transparent environment for global investors.
Standardizing Trade Infrastructure: Highlighting gaps in logistics and utility connectivity prompts targeted investments that reduce the overall cost of doing business in India.
Follow the full report here: NITI Aayog Export Preparedness Index 2024