Measuring Export Preparedness using an Index is a great effort in right direction for India, and timing couldn’t have been better. In spite of the shattering COVID-19 second wave, FY 2021-22 has proven to be a smashing hit for India as it has been tactfully upping its game to expand its global export footprint. In Dec 2021, India’s figures of exported goods stood at USD 37.29 billion USD, hitting an all-time high for monthly data, whereas its merchandise exports hit almost USD 300 billion in Apr-Dec, higher by 48.85% year-on-year.
NITI Ayog released The Export Preparedness Index 2021 which is going to assist states and UTs to carve ambitious policies to further ensure a conducive export ecosystem. The Index ranks the states majorly on four main parameters or pillars- policy, business ecosystem, export ecosystem and export performance. This edition of Index has shown that most of the ‘Coastal States’ are the best performers with Gujarat being on the top, followed by Maharashtra, Karnataka, Tamil Nadu, Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Punjab, Andhra Pradesh and Telangana. Among union territories, Delhi topped is on the top, followed by Goa, Jammu and Kashmir and Chandigarh. In this way, EPI also promotes competitive federalism and a fair contest among States/UTs.
A plethora of new catalytic changes and initiatives have been rolled out like increasing the number of GI tagged items in the country, introduction of PLI scheme, EODB reforms, rationalisation of duties, clearing some pending tax refunds to exporters to improve their liquidity, and extension of interest subvention scheme to boost textile and engineering exports. Some other measures include tightening the Rules of Origin (RoO) norms, releasing of more than Rs. 56 crores against pending tax refunds of exporters, notifying Remissions of Duties and Taxes on Exported Products (RoDTEP) rates, Rebate of State and Central Levies and Taxes (RoSCTL) Schemes, and launch of Common Platform for Issuance of Certificates of Origin to facilitate trade and to increase FTA utilization by exporters. Besides, enormous efforts have also gone into promoting districts as export hubs by identifying products with export potential in each district. India is also aggressively negotiating FTAs with the EU, Australia, the UAE, the UK, Canada, Israel and the Gulf Cooperation Council, GCC.
Going forward, the strategies should also be on lines of how to emerge as an alternative to China as India is rightly placed to benefit from the vacuum that has been created by the US-China trade tussle aftermath, COVID-19 Pandemic, rising labour costs in China and other domestic and international factors. Thus, countries like India, which offer less complex business and investment framework and cheaper labour, are becoming an alternative to importing countries like Japan, South Korea and many other South-Asian nations, who are more than willing to strengthen the trade ties with India. Every step of India, thus must focus on expanding more and more business, domestic and overseas.
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