Assam ranks 21 in Niti Aayog's Export Preparedness Index

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• Jul 26, 2023 | Dhupali Das

In the recently released Niti Aayog's Export Preparedness Index 2022, Assam has been ranked 21...

Digital Desk: In the recently released Niti Aayog's Export Preparedness Index 2022, Assam has been ranked 21 among the 36 states and Union Territories in India. The index evaluates and assesses the export readiness of different regions based on more than 20 indicators, focusing primarily on the state's ecosystem and infrastructure. While the report sheds light on some positive aspects, it also points out several key drawbacks that hinder Assam's export potential.

The State scored 43.91 in the Index, falling below the country's average of 46.56. This disparity in export preparedness among regions highlights the urgent need for targeted improvements in various areas to bolster export capabilities. Coastal Tamil Nadu claimed the top spot in the rankings with an impressive score of 80.89, followed closely by Maharashtra and Karnataka.

The pillar-wise ranking revealed that Assam performed relatively better in the 'policy' category, securing the 15th rank. However, it lagged significantly in terms of business ecosystem (rank 20), export ecosystem (rank 26), and export performance (rank 24).

One major area of concern highlighted in the report is the lack of district export action plans in Assam. The report indicated that only 37 percent of the districts in the state have drafted such plans. These action plans are crucial for stakeholders to act efficiently towards achieving their export goals. Thus, the report emphasizes that states without a plan should take immediate measures to rectify this situation.

On a positive note, the report acknowledged that both Odisha and Assam recorded the highest value addition from manufacturing compared to the previous year. However, Assam's share of merchandise exports in its GDP remained relatively low, accounting for just 1.29 percent in 2020–21, which only slightly increased to 1.35 percent in 2021–22.

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The report recommended several measures for Assam to enhance its export strategies. Firstly, the state should develop district-level action plans to strengthen its export capabilities. It is essential for the state government to focus on reducing tariffs for high-tension power supplied to industries to improve the business ecosystem. Neglecting the power supply issue could result in a power deficit. Additionally, improving internet connectivity and attracting more foreign direct investments (FDIs) were also suggested to boost the state's export potential.

The Niti Aayog report highlighted that despite varied performance, all states that participated in the assessment experienced positive export growth and an increase in the number of exporters. To sustain this momentum and further strengthen their export preparedness, timely measures to enhance the business and export ecosystem are essential for these states.

In the broader picture, Gujarat emerged as the leading state in terms of export share in 2021–22, accounting for over 30 percent of India's total merchandise exports, valued at USD 127 billion.

The rankings and insights provided by the Niti Aayog's Export Preparedness Index 2022 will serve as valuable guidance for policymakers and stakeholders in Assam to address the identified challenges and work towards fostering a conducive environment for export growth and economic development in the state.