Export Preparedness Index (EPI) 2020 : NITI Aayog - UPSC

Question : The Export Preparedness Index (EPI) 2020 is published by the ~

a. NITI Aayog and Ministry of Trade & Commerce
b. NITI Aayog and the Institute of Competitiveness 
c. NITI Aayog and Ministry of Finance
d. NITI Aayog and WTO

Answer : ✓ (b) NITI Aayog and the Institute of Competitiveness 

For Prelims :
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NITI Aayog in partnership with the Institute of Competitiveness released the First Export Preparedness Index (EPI) 2020.

This first report examine export preparedness and performance of Indian states.

Aim : To identify challanges and opportunities, enhance the effectiveness of government policies and encourage a facilitative regulatory framework.

Parameters for States Ranked :


By Four Key Pillars :


I. Policy : A comprehensive trade policy provides a strategic direction for export and import.
II. Business Ecosystem : An efficient business ecosystem can help states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
III. Export Ecosystem : This is aim to assess the business environment, which is specific to export.
IV. Export Performance : This is the only output-based pillar and examines the reach of export footprints of States and Union Territories.
&

By 11 Sub-Pillars :

Export Promotion Policy
Institutional Framework
Business Environment
Infrastructure
Transport Connectivity
Access to Finance
Export Infrastructure
Trade Support
R & D Infrastructure
Export Diversification and
Growth Orientation

NITI Aayog (National Institution for Transforming India) :
established : 1 Jan 2015 
Replaced Planning Commission of India
• Approaches : Bottom-Up
• Vision : "Sankalp Se Siddhi" (attainment through resolve)
• NITI is neither a Constitutional body nor a Statutory body. It is a extra-Constitutional body.
• NITI Aayog, is a think-tank of the  Government of India.
Functions :
+ To provide strategic, directional and technical advice for key elements of policy/development process at Local, State or Central levels.
+ It will monitor and evaluate the implementation of  programmes.
+  It is also promote better Inter-Ministry Coordination and better Center -State Coordination.
Part of NITI Aayog : National and International experts, practitioners and partners are intended to be a part of the NITI Aayog.
Composition of NITI Aayog :
• Chairman : Prime Minister
• Vice Chairman :  Dr. Rajiv Kumar
• Chief Executive Officer : Amitabh Kant
• Governing Council : Chief Minister of all the States and Lt. Governors (UTs)...


According to Report :-


• EPI has shown most of the Indian States perform well in three Sub-Pillars - Export Diversification, Transport Connectivity, and Infrastructure (the average score of Indian states in these three Sub-Pillars was above 50%).
Best Performers : most of the Coastal States. Under top ten ranking States - 6 from Coastal States.
Top 3 Ranked States : Gujarat 1st, Maharashtra 2nd, and Tamil Nadu 3rd.
Among landlocked states, Rajasthan has performed the best, followed by Telengana and Haryana.
In the Himalayan States, Uttarakhand ranked highest, followed by Tripura and Himachal Pradesh.
• Across the Union Territories, Delhi is the highest, followed by Goa and Chandigarh.
• At present, 70% of India's export by 5 States - Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telengana.

Three Fundamental Challenges :

 According to report, export promotion in India faces three major challanges -

I. Intra-regional and Inter-regional disparities in export infrastructure;
II. Poor trade support and growth orientation among states; and
III. Poor R&D infrastructure to promote complex and unique exports.

To Mitigate Challenges :


• A joint development of export infrastructure;
• Strengthening industry-academia linkages;
• Creating state level engagements for economic diplomacy.
• Promote competitive local products.
• To development of indigenous products basket.
• Harnessing the innovations and technological to provide use of new products.
• States need adequate support from the Centre.
• States need to focus on dynamic export policies and plans.

Way Forward :

To increase exports from all the states and union territories can help India move from an emerging economy to a developed economy by focusing on 'Atma Nirbhar Bharat'. The export can also aid to generate jobs in India.

Question : The best performing State in EPI ~

a. Tamil Nadu
b. Maharashtra
c. Rajasthan
d. Gujarat

Answer : ✓ (d) Gujarat


References
PIB
NITI Aayog
GoI
AIR


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