Export Preparedness Index: Nagaland's overall performance
Morung Express News
Dimapur | August 27
How prepared is Nagaland to engage in global trade and how is the State’s export ecosystem?
Not ready yet, but the State has potential to improve, indicated the first EPI- ‘Export Preparedness Index 2020’ released by NITI Aayog on August 26.
With an overall score of 29 out of 100, Nagaland was ranked 24th out of 36 states and Union Territories (UTs) in the index “developed to study export preparedness and competitiveness at the sub-national level.”
The index divided the States/UTs into five categories - Major States (Coastal); Major States (Landlocked); Himalayan States; and UT/City States.
Nagaland was slotted sixth in the 9 ‘Himalayan States’ category, comprising of 7 States in North East excluding Assam and two others – Uttarakhand and Himachal Pradesh.
Uttarakhand topped the category, followed by Tripura and Himachal Pradesh.
Gujarat topped the overall index with Export Preparedness score of 75.19, followed by Maharashtra (75.14) and Tamil Nadu (64.93).
Jammu and Kashmir, Daman and Diu, and Lakshadweep were top-bottom three respectively in descending order.
What is EPI?
The EPI, prepared by NITI Aayog in partnership with the Institute of Competitiveness, examine the export preparedness and performance of Indian states.
“The EPI intends to identify challenges and opportunities; enhance the effectiveness of government policies; and encourage a facilitative regulatory framework,” an official release informed.
The structure of the EPI includes 4 pillars –Policy; Business Ecosystem; Export Ecosystem; Export Performance – and 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.
The development of the EPI Index was an inclusive process and contains extensive engagement with the states in the process of data collection, the release informed.
At the release, NITI Aayog Vice Chairman Dr Rajiv Kumar said that the EPI was prepared to realise the vision of the potential of India becoming a strong exporter on the world stage.
The Index would be a helpful guide for the state governments to benchmark regional performance with respect to export promotion and thus deliver key policy insights on how to improve and enhance the same,” added Amitabh Kant, Chief Executive Officer, NITI Aayog.
‘Contrasting pictures’
According to the report, on Policy Pillar, Nagaland was ranked 20th while on Business Ecosystem and Export Performance, the State ranked 24th and 20th respectively.
However, in Export Ecosystem pillar, Nagaland performed worst with just 3.17 score out of possible 100 and was the second worst performing State/UT after Lakshadweep.
Delving deeper into sub-pillars, the report presented contrasting pictures for Nagaland and indicated that while policy-wise, the State seems to be in tune with others but the implementation stage told a different story.
For instance, Nagaland scored a 100 in ‘existence of a valid’ export policy and appointment of full-time export commissioner as well as designating export as a ‘thrust sector.’
However, it scored ‘zeroes’ in marketing support, emphasis on product quality and standards, existence of co-ordination cell, grievance redressal, international access and newsletter.
The report particularly pointed out that “Capacity Building/Orientation Workshops” and ‘Membership of Exporters in trade promotion council’ were missing values in Nagaland.
In Business Ecosystem pillar, the State performed well in infrastructure including 100 points in ‘number of IY/Software/Food Parks as well as 100 under power cost, in parameters like labour reforms, investors’ summits, signing of MoU, single-window clearance, hubs and air cardo facilities etc, the State scored zero.
Under Business Environment category, Nagaland suffered most in ‘Access to Finance’ sub-pillar with just 0.42 score out of 100 with lack of banking facilities, credit and loan schemes for exporters.
On Export Eco-system Pillar, in which the State was ranked second lowest in India, trade support was zero, while it scored below 5 in both export and R&R infrastructure.
Despite lack of export eco system, it was ranked 20th mostly propelled by growth and orientation, and export diversification, however, export remains just 0.4 percent of the State GDP.
“Himalayan states such as Nagaland, Arunachal Pradesh and Mizoram that have performed poorly, need to take concrete measures for example introducing single-window clearances, for attracting more investments in order to better their business environment,” the report said.
