Export Preparedness Index (EPI)

The NITI Aayog has released the Export Preparedness Index (EPI) 2024, which assesses the export readiness of India’s States and Union Territories (UTs). This is the fourth edition of the index, with the first edition having been published in August 2020.

About the Export Preparedness Index (EPI) 2024

The Export Preparedness Index is a comprehensive assessment tool designed to evaluate how well States and UTs are prepared to promote and sustain exports. It recognises the diversity of India’s subnational economies and their crucial role in advancing the country’s global trade ambitions.

The index aims to promote competitive and cooperative federalism by encouraging states to improve their export ecosystems through better infrastructure, governance, and business environments.

Framework and Structure of the Index

The EPI 2024 is structured around four pillars, which are further divided into 13 sub-pillars and 70 indicators. Each pillar measures a different aspect of export preparedness.

1. Export Infrastructure (20% Weightage)

This pillar assesses the availability and quality of infrastructure required to support exports. It includes logistics facilities, transport connectivity, trade-supporting infrastructure, and digital connectivity.

2. Business Ecosystem (40% Weightage)

This pillar carries the highest weightage of 40%, highlighting its importance. It evaluates the overall business environment, including ease of doing business, access to finance, industrial capacity, and availability of skilled labour.

3. Policy and Governance (20% Weightage)

This pillar examines the effectiveness of state-level export policies, institutional support mechanisms, and implementation efficiency.

4. Export Performance (20% Weightage)

This pillar measures actual export outcomes, including export growth, diversification, and the state’s contribution to national exports.

Classification of States and Union Territories

For meaningful comparison, States and UTs are grouped into four categories:

• Large States

• Small States

• North Eastern States

• Union Territories

Within each category, they are further classified as:

• Leaders – States/UTs with high export preparedness.

• Challengers – States/UTs with moderate preparedness and scope for improvement.

• Aspirers – States/UTs at an early stage of export ecosystem development.

Leading Performers in EPI 2024

Large States

The leading performers among large states are:

• Maharashtra

• Tamil Nadu

• Gujarat

• Uttar Pradesh

• Andhra Pradesh

Small States, North Eastern States and UTs

The leading performers in these categories are:

• Uttarakhand

• Jammu and Kashmir

• Nagaland

• Dadra and Nagar Haveli & Daman and Diu

• Goa

These states and UTs have demonstrated strong performance across infrastructure, governance, and export outcomes within their respective categories.

Significance of the Export Preparedness Index

The EPI 2024 is significant because it:

• Encourages states to improve their export competitiveness.

• Identifies gaps in infrastructure and policy frameworks.

• Promotes data-driven policymaking.

• Strengthens India’s efforts to increase its share in global trade.

By focusing on subnational export readiness, the index supports India’s broader vision of export-led growth and balanced regional development.

Conclusion

The Export Preparedness Index 2024 highlights that India’s export growth depends not only on national trade policies but also on the strength of state-level infrastructure, governance, and business ecosystems. It serves as an important tool for guiding reforms and enhancing India’s global trade performance.