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ARTHA

What Determines the Export Preparedness of States

The Export Preparedness Index evaluates the entire ecosystem supporting export activities across four pillars:

1. 2. 3. 4.

Export Infrastructure Business Ecosystem Policy and Governance Export Performance

These pillars are further disaggregated into 13 sub-pillars and 70 indicators; each assigned a specific weight based on their
relative importance in enabling exports. States are scored across individual indicators, aggregated at the sub-pillar and pillar
levels, and then ranked based on overall performance.

Figure: Export Preparedness Index 2024: Pillars and Sub-pillars

MSME ecosystem (10%)

(10%)
Utilities
Macro (10%)
economy
Logistics
(10%)
Export
Business Industrial
infrastructure
Regulatory (20%)
environment ecosystem & innovation
& compliance (40%) environment
(5%) (5%)
Policy &
Finance &
Governance accessibility
credit
(20%)
(5%)
Policy
support & (20%) performance Export Cost
governance
Human
capital
(5%)
(15%)
(5%)
Exports & trends (5%) Export promotion & facilitation (5% (10%) market Export competitiveness
portfolio &
access

Note 1: The Inner Circle represents the four pillars, while pies in the outer circle represent the sub-pillars for each pillar.
Note 2: The number in brackets reflect the weight of each indicator in overall index.
Source: NITI Aayog’s Export Preparedness Index (EPI) 2024

Based on their overall scores assigned through this market access, infrastructure depth, demographic
method, States are classified into three categories: composition, fiscal capacity and administrative
• Leaders bandwidth, states are grouped into two categories – first,
• Challengers Large States, and second, Small States, North-East
• Aspirers States & Union Territories. These structural factors shape
both reform capacity and competitiveness outcomes of
To account for structural differences, such as variations in the states, and they are ranked separately.
economic scale, industrial base, geographic location,

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