Gujarat retained the top rank even as most of the coastal states emerged better performers on the Niti Aayog’s Export Preparedness Index 2021, data for which was released on Friday.

Among the states and Union Territories, Gujarat has the highest score of 78.86 out of 100 and Lakshadweep with the lowest score of 2.12.

“Gujarat has topped the index with a strong display in various sub-pillars such as export promotion policy, business environment and infrastructure,” according to the report. Notably, other coastal states such as Maharashtra and Karnataka occupy the index’s second and third positions. All three states have performed consistently across pillars, thus consolidating solid scores. These states are among the top states in the export contribution of more than 50% in India in 2020-21, it said.

While the central government plays an active role in enhancing India’s exports, it is also essential for the state governments to actively strategise their industrial policies to achieve more significant exports. Moreover, the states have the predominant role in the allocation of factors of production – land, labour, electricity, water, infrastructure, etc. Therefore, India’s export policy has to be more decentralised and state-specific, the report noted.

India’s merchandise exports exceeded an ambitious target of $400 billion for FY22 nine days before the fiscal is set to end, staging a smart rebound after a 7% slide last fiscal in the wake of the Covid-19 outbreak and surpassing the previous high by a wide margin.

India faces stiff competition on its cost-effective exports from countries like Vietnam, Laos, Cambodia and the Philippines. The report explores the possibilities of expanding the long-term productivity of Indian exporters and further developing complex, unique, and value-added Indian products for the world.

The Export Preparedness Index (EPI) is a data-driven endeavour to identify the fundamental areas critical for subnational export promotion.

The EPI ranks states and UTs on 4 main pillars — policy, business ecosystem, export ecosystem and 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.

Releasing the report, Niti Aayog vice chairman Rajiv Kumar said it will help the states plan and execute sound export-oriented policies for ensuring a conducive export ecosystem, to make maximum utilisation of their export potential.