Why in news?
In mid‑January 2026, NITI Aayog released the fourth edition of its Export Preparedness Index (EPI). The report benchmarks how Indian states and Union Territories are ready to expand exports, a crucial step toward India’s goal of reaching a trillion‑dollar export economy by 2030. The latest rankings highlight both established leaders and emerging performers, encouraging healthy competition and cooperation among regions.
Background
The Export Preparedness Index is a data‑driven tool designed by NITI Aayog to evaluate sub‑national export readiness. States are grouped into two broad categories — Large States and Small States, Northeastern States & Union Territories. Within each category they are further classified as Leaders, Challengers or Aspirers based on their scores. The index rests on four pillars:
- Export infrastructure: quality of transport networks, ports, warehouses and utilities that lower trade costs.
- Business ecosystem: availability of skilled labour, finance and a supportive regulatory environment.
- Policy and governance: state‑level policies, trade facilitation measures and ease of doing business.
- Export performance: value and diversification of exports during 2022–24, including resilience to shocks.
These pillars are further broken down into 13 sub‑pillars and 70 indicators, with 50 designated as vital parameters. By analysing this wide spectrum of data, the index offers each state clear guidance on strengths and gaps.
Highlights of the 2024 rankings
- Top large states: Maharashtra tops the list, followed by Tamil Nadu, Gujarat, Uttar Pradesh and Andhra Pradesh. These states have robust infrastructure, diversified export baskets and proactive policy support.
- Leading smaller states/UTs: Uttarakhand leads the smaller‑state category, with Jammu & Kashmir, Nagaland, Dadra & Nagar Haveli & Daman & Diu, Goa and Tripura also performing well.
- Classification insight: Leaders are states with comprehensive export ecosystems; Challengers have solid foundations but need to improve in specific areas; Aspirers are developing states with considerable scope for growth.
- Policy tool: The EPI emphasises peer‑learning and targeted investment. It recommends that states improve last‑mile logistics, streamline regulations for small exporters and develop district‑level export hubs.
Why it matters
The index promotes cooperative and competitive federalism by encouraging states to emulate best practices. Strengthening export readiness at the state level will help India integrate more deeply into global value chains, create jobs and realise its vision of a developed, export‑led economy by 2047. The report also underscores the importance of tailored interventions rather than one‑size‑fits‑all policies.
Source: PIB
