Export Preparedness Index (EPI) 2021
2022 MAR 26
Preliminary >
Economic Development > Indian Economy and Issues > External sector
Why in news?
- Gujarat has been named India’s top State in terms of export preparedness for the second year in a row as per the Export Preparedness Index (EPI) 2021 released by the NITI Aayog.
About Export Preparedness Index (EPI):
- It aims to identify challenges and opportunities, enhance the effectiveness of government policies and encourage a facilitative regulatory framework for export.
- The index entails four pillars, eleven sub pillars and sixty indicators and covers across 28 states and 8 UTs.
Four Pillars:
- Policy:
- A comprehensive trade policy providing a strategic direction for exports and imports.
- Business Ecosystem:
- An efficient business ecosystem helping states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
- Export Ecosystem:
- Assess the business environment, which is specific to exports.
- Export Performance:
- This is the only output-based parameter and examines the reach of export footprints of States and Union Territories.
Eleven Sub-pillars:
- The index also took into consideration 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.
PRACTICE QUESTION:
Export Preparedness Index (EPI) is released by:
(a) Ministry of Commerce and Industry
(b) NITI Aayog
(c) EXIM Bank
(d) Director General of Foreign Trade
Answer