Guwahati: A recent report by NITI Aayog titled ‘Export Preparedness Index (EPI) 2022’ reveals that the northeastern states of Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram are performing below the national average in terms of exports.
The report, released by Vice Chairman Suman Bery, aims to evaluate India’s export scenario and provide valuable insights to states and stakeholders for targeted strategies and improvements.
The report examines four key pillars: Policy, Business Ecosystem, Export Ecosystem, and Export Performance, using 56 indicators to assess the export preparedness of states and union territories. The northeastern states need to focus on enhancing their business and export ecosystems, particularly in the manufacturing sector, which has experienced a decrease in value addition across all states except Arunachal Pradesh.
To improve export performance, the report recommends measures such as improving foreign direct investment (FDI) inflows, addressing power deficits in Arunachal Pradesh, and strengthening linkages between industries to enhance cluster strength. It also highlights the importance of improving connectivity and establishing air cargo terminals, cold storage, and warehouses to facilitate exports and overcome geographical disadvantages.
The report also suggests creating knowledge dissemination portals for exporters, organising exhibitions and capacity-building workshops, and leveraging the rich cultural heritage of the northeastern states to develop unique export products. It also emphasises the importance of identifying more Geographical Indication (GI) products for export to diversify the export baskets of these states.
In terms of policy support, Sikkim performs close to the national average, while Mizoram and Arunachal Pradesh lag behind, lacking export-supporting policy measures. Assam faces challenges in export promotion policy, with only 37 per cent of its districts having drafted plans. The report emphasises the need for sector-specific policy measures, public dissemination of information on quality standards, and export promotion measures through awards or incentives.
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The institutional framework in Arunachal Pradesh and Sikkim requires improvement, with the lack of coordination cells and institutionalised mechanisms for grievance redressal of exporters hindering growth. Mizoram faces the absence of a single-window facility, while Assam and Odisha excel in value addition in the manufacturing sector.
The report also highlights the export growth of states like Odisha, Gujarat, and Karnataka in 2021-22 compared to the pre-pandemic year of 2019-20. Gujarat emerged as the top state in terms of export share, doubling its export value to US$127 billion, representing over 30 per cent of India’s total merchandise exports.
Overall, the report emphasises the need for targeted strategies and improvements in various areas to enhance the export performance of the northeastern states, enabling them to become more competitive in the global market.
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