Why do Indian Coastal states fare better in NITI Aayog’s Export Preparedness Index?

Published: August 27, 2020

Niti Aayog’s Export Preparedness Index of 2020 has been released. Gujarat topped the list and followed by Maharashtra and Tamil Nadu. As per the report, six of eight coastal states secured their places in the top ten rankings. That clearly indicates the importance of the export facilities of the states.

The index

  • Niti Aayog has set up a partnership with the Institute of Competitiveness released to release the first Export Preparedness Index.
  • Four key parameters are Policy, Business Ecosystem, Export Ecosystem, Export Performance.

Key factors

  • The rapid growth of exports provided an impetus to long-term economic growth.
  • Favorable economic conditions of the coastal states helped the states to contribute to global value chains.
  • The presence of major ports like Porbandar, Jawaharlal Nehru port, Marmagao, New Mangalore, Tuticorin are beneficial for the export operation.
  • The abundance of natural resources in the coastal region
  • Rajasthan topped among the landlocked states.
  • Uttarakhand topped among the Himalayan states.
  • Chattisgarh and Jharkhand improved a lot even after being landlocked states.
  • India’s per capita exports is 241 USD.

India’s merchandise exports have experienced a growth of 331 billion USD in 2018-19.

Comment

To increase the GDP, the country must focus on the Atma Nirbhar Bharat scheme to enhance the export. Apart from the coastal states, focusing more on the landlocked states following Chattisgarh and Jharkhand and adopting the Production Linked Incentive Scheme an overall enhancement could be provided to set up a suitable environment for export throughout the country.

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