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