Page 21 - CII Artha Magazine 2022

State of States

Export Table 2: Bottom 5 States in Terms of Overall Ranking States Table 4: Bottom 5 States Under Policy Pillar

Increase/
Export
States
Increase/
Export
Export
Export
Preparedness

Preparedness

Decrease in
Preparedness
Decrease in
Preparedness
Preparedness Nagaland Index 2020 Index 2021 value w.r.t Puducherry Index 2020 Index 2021 value w.r.t

2020 index

2020 index
13.99
10.99
0.00
29.00
13.39
34.66
Meghalaya
Delhi
7.58
9.05
Arunachal
29.53
Mizoram
12.58
5.69
7.26
Index Arunachal 28.28 11.18 Pradesh 0.00 - -
Pradesh
Dadra Nagar & 0.00
Daman and Diu
Lakshadweep 12.4
2.12
0.00
Lakshadweep 0.00
Being closer to the coast, by promotion policies and
itself, does not necessarily help provided a conducive followed by Dadra, Nagar and
states to qualify for a high score institutional environment to DELHI TOPS THE
in the index. Industrial activity at boost exports at the Haveli and Daman & Diu, LIST IN ATTRACTING
Arunachal Pradesh and Delhi.
sub-national level. It comprises
the state level and a conducive
I ndia’s vision of emerging as a has announced the Export business environment are also of two sub-pillars namely A comparison with the INVESTMENTS AND
CREATING THE
Preparedness Index (EPI),
US$5 trillion economy in
among the key export drivers.
Export Promotion Policy
near future is inextricably 2021. The Index ranks the This is made evident from the and Institutional aggregate rankings shows that, in REQUISITE
linked to the export-oriented states and Union territories fact that West Bengal, Kerala and Framework. general, a conducive policy INFRASTRUCTURE
approach to development. based on their preparedness R&D infrastructure, export heels are the landlocked Goa, despite being coastal states, environment has a positive FOR BUSINESS
This would entail a rapid to promote exports. The diversification, and growth states while the Himalayan are in the middle rung in terms influence on exports at the EXPANSION
expansion of India’s external purpose is to promote orientation. states and the city states/ of export preparedness MADHYA PRADESH sub-national level. Hence,
trade through a mix of competition among states union territories account for rankings. The city state of LEADS THE WAY IN Gujarat, Maharashtra, Karnataka and creating the requisite
infrastructure support and a which would help improve COASTAL STATES lower scores on the index. Lakshadweep brings up the ADOPTING EXPORT and Tamil Nadu, which have the infrastructure for expanding
prudent policy push- to their export performance and The coastal states, which also bottom in the Index followed by PROMOTION top score in the EPI, also do well business. An efficient business
achieve US$1 trillion worth of enhance their readiness to EMERGE AS BEST boast of high industrial Arunachal Pradesh, Mizoram, POLICIES under the policy pillar. Similarly, ecosystem strengthens the
merchandise exports in the scale up the overseas PERFORMERS ON activity, lead in the rankings of Meghalaya and Nagaland. Madhya Pradesh, which has the backward and forward
near term. A concerted transactions. The Index would EXPORT PROMOTION export preparedness. first rank in the policy pillar is linkages of the exporting
government effort in this also help the states to PREPAREDNESS Accordingly, the top ranking Let us now look at the The state level ranking shows also among the top in the index industry, thereby enhancing its
direction has resulted in the benchmark their performance has been accorded to the performance of states on four that Madhya Pradesh has with a high seventh rank. output and growth. The
export target of US$400 against the best-ranking states coastal state of Gujarat. This major pillars which are the notched the top score on the Business Ecosystem pillar
billion being surpassed in and learn from their The ranking, at the aggregate is followed by Maharashtra, key enablers which would policy pillar. This is closely Nevertheless, the comparison evaluates states’ performance
FY22, a landmark achievement experience. level, suggests that coastal Karnataka and Tamil Nadu. facilitate export growth. The followed by Maharashtra, also indicates that policy alone across four sub pillars namely
which, if sustained and states are among the best The land-locked state of first is the Policy pillar. This Karnataka, Gujarat and Odisha. does not upscale the state’s business environment,
improved upon, would The overall ranking of 36 performers. Close on the Haryana is fifth in the ranking. pillar shows whether the state The lowest score has been position. This is borne out from infrastructure, transport
catapult India to the league of states and union territories is has adopted facilitative export awarded to Lakshadweep the fact that Haryana occupies connectivity and access to
th
major exporting nations, a result of a state’s ranking the 5 position in EPI despite finance.
th
going forward. However, the across the four pillars of ranking 17 under the policy
th
continuation of this robust export preparedness namely Table 1: Top 5 States in Terms of Overall Ranking Table 3: Top 5 States Under Policy Pillar pillar. Similarly, Assam is placed 7 Delhi has the highest score
export performance would policy, business ecosystem, in the policy pillar which is ahead under this pillar. This is followed
th
depend essentially on active export ecosystem and export States Export Export Increase/ States Export Export Increase/ of Tamil Nadu but has a 15 rank by Maharashtra, Karnataka,
Preparedness

Preparedness
Decrease in
participation of the states performance. For a Index 2020 Index 2021 value w.r.t Preparedness Preparedness Decrease in in EPI while Tamil Nadu is fourth Haryana, Gujarat and Tamil
which would work in tandem comprehensive and granular 2020 index Index 2020 Index 2021 value w.r.t in the EPI ranking. Bihar is Nadu- states which are also
with the Centre in this analysis, the index takes into 2020 index another state which have done the front ranking exporting
pursuit of expanding India’s consideration eleven Gujarat 75.19 78.86� Madhya Pradesh 49.47 94.66 well in policy but lags in the states with an outstanding EPI
global footprint. sub-pillars namely export Maharashtra 75.14 77.14 overall score. score. The bottom ranking
promotion policy, institutional Maharashtra 75.14 82.47 goes to Lakshadweep followed
To assess the preparedness of framework, business Karnataka 55.17 61.72 Karnataka 55.17 81.12 The second is the Business by Ladakh, Nagaland, Andaman
states to promote exports, environment, infrastructure, Tamil Nadu 64.93 56.84 Gujarat 75.19 80.03 Ecosystem pillar. This relates & Nicobar Islands, Arunachal
the NITI Aayog, in transport connectivity, access Haryana 56.03 53.20 to the enabling and facilitative Pradesh and Meghalaya. These
collaboration with the to finance, export Odisha 58.23 79.66 environment provided by the states are also in the bottom
Institute of Competitiveness, infrastructure, trade support, state for attracting investments rung in terms of the overall EPI.
20 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 21
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2022 MAY 2022