Assam has been ranked 24th among 36 States and Union Territories in the Export Preparedness Index 2024, released by NITI Aayog, highlighting both the strengths and structural gaps in the State’s export ecosystem.

What is the Export Preparedness Index?

• The Export Preparedness Index, first launched in 2020, assesses how ready Indian States and Union Territories are to promote and sustain exports.
• The assessment is based on four broad pillars:
  • Export infrastructure
  • Business ecosystem
  • Export performance
  • Policy and governance
• These pillars are broken into 13 sub-pillar and 70 detailed parameters, offering a comprehensive picture of export capacity.

Highlights of EPI 2024 

The 2024 rankings showed a significant shift, with Maharashtra overtaking Tamil Nadu to secure the top spot among large states.

Top Performers by Category:

• Large States:
  1. Maharashtra (Rank 1)
  2. Tamil Nadu
  3. Gujarat
  4. Uttar Pradesh
  5. Andhra Pradesh
• Smaller States, NE States & UTs:
  1. Uttarakhand (Rank 1 in this category)
  2. Jammu and Kashmir
  3. Nagaland
  4. Dadra and Nagar Haveli & Daman and Diu
  5. Goa

Assam’s current export profile

• Assam’s exports stood at ₹3,700 crore in the financial year 2024.
• Tea remains the dominant export, contributing more than half of total merchandise exports, reflecting Assam’s long-standing global reputation.
• Other key export items include:
  • Coke and semi-coke, supported by coal availability
  • Medicaments, aided by pharmaceutical hubs near Guwahati
  • Coal and bituminous coal, linked to resource-based industries

Untapped export potential

The report identifies several underutilised sectors with export promise:

• Wood charcoal and shell or nut wood, with scope for value addition and sustainable forestry
• Fragrances and cosmetics, including odoriferous substances and skincare products, which need branding and quality certification
• Sesame seeds and other oilseeds, suited to Assam’s agri-climatic conditions and potential markets in East and Southeast Asia

Key challenges highlighted

• Over-dependence on tea, making exports vulnerable to global price fluctuations and climate risks
• Weak logistics ecosystem, including inadequate cold storage and cargo services
• Shortage of accredited testing laboratories, forcing exporters to rely on facilities outside the State
• Export concentration risk, with Bhutan accounting for nearly 23 per cent of exports
• Informal export practices, such as under-invoicing and bypassing formal channels, affecting credibility and revenue

One-line wrap

Assam’s low export readiness ranking reflects strong commodity strengths but also urgent structural gaps in logistics, diversification and formal trade practices.

Exam Hook 

Q. With reference to the Export Preparedness Index, consider the following statements:

1. It is released by NITI Aayog.
2. It assesses States only on export volume and value.
3. Over-reliance on a single export commodity can weaken export resilience.

Which of the statements given above is/are correct?
Answer: 1 and 3 only.

SOURCE