India’s drive to emerge as a global export powerhouse will succeed only if states close persistent gaps in infrastructure, governance and district-level execution, according to a government-backed assessment that flags wide disparities in export readiness across the country.
The Export Preparedness Index (EPI) 2024, released by Niti Aayog, finds that while some states have built relatively robust export ecosystems, many others continue to lag on basic enablers such as logistics, regulatory capacity, access to finance and skilled manpower. The report warns that without targeted state-led reforms, India’s goal of reaching USD 1 trillion in merchandise exports by 2030 will remain uneven and vulnerable to external shocks.
The index evaluates all states and Union Territories across four pillars: export infrastructure, business ecosystem, policy and governance, and export performance, using 70 indicators. It classifies states into leaders, challengers and aspirers, underlining that export competitiveness in India is increasingly shaped at the sub-national level rather than by national policy alone.
According to the report, export infrastructure remains a binding constraint in several regions, particularly in logistics, last-mile connectivity and utility reliability. Limited access to ports, air cargo facilities and cold-chain infrastructure continues to raise costs and reduce competitiveness for exporters outside established industrial hubs. States with stronger logistics networks and better integration with national freight corridors score markedly higher on export preparedness.
The business ecosystem pillar highlights uneven progress in cost competitiveness, availability of skilled labour and access to finance, especially for micro, small and medium enterprises. MSMEs play a critical role in state exports, but the report notes that many states still lack effective export financing schemes, credit insurance mechanisms and targeted support for MSME clusters. High industrial power and water costs in some regions further erode export margins, it adds.
Policy and governance emerge as another area of divergence. While several states have adopted export-specific policies, digitalised procedures and single-window clearances, others continue to struggle with fragmented institutional structures and weak coordination at the district level. The report stresses that export outcomes improve significantly where states have empowered district export promotion committees and aligned them with clear action plans.
A key shift in the 2024 edition is the emphasis on districts as the core units of export competitiveness. Mapping district-level capabilities, infrastructure gaps and sectoral specialisations is essential for translating national export ambitions into measurable outcomes, the report says. Without stronger district execution, state-level strategies risk remaining largely aspirational.
The index also flags the need for diversification beyond traditional export baskets. While India’s export profile is gradually shifting towards higher-value manufacturing, digital services and green technologies, many states remain overly dependent on a narrow range of products and markets. This concentration increases vulnerability to global demand shocks and trade disruptions, particularly amid rising geopolitical uncertainty and supply chain realignments.
The report situates India’s export challenge within a volatile global backdrop marked by inflation, geopolitical tensions and a shift towards regionalised trade. It argues that resilient, diversified and innovation-led export capabilities at the state level are now central to sustaining growth, improving employment outcomes and strengthening India’s integration into global value chains.
Niti Aayog said the EPI is intended not just as a ranking exercise but as a policy tool to guide reforms, resource allocation and peer learning among states. The assessment was developed with Deloitte as the knowledge partner and draws on data from central ministries, state governments and official agencies.
“State-level excellence and coordinated policy action are central to realising India’s vision of becoming a globally competitive, export-oriented economy,” the report says, adding that export preparedness must be treated as a long-term governance priority rather than a short-term performance metric. |
