First export readiness index in classifying states, UT probably in January 2020

New Delhi, November 3 () The government is likely to publish the first index to rank the states and territories of the Union based on their readiness to promote exports, an official said.

The exercise would help promote healthy competition between states and TUs to work on the parameters to promote the country's exports, which is one of the key indicators to boost economic growth.

The index will classify them into some key parameters, such as the business environment, infrastructure, transport connectivity, access to financing, export infrastructure and commercial support, the official said.

Both Niti Aayog and the Ministry of Commerce are working on this index.

In addition to the general classification, it will also be there for coastal states, landlocked states and mountainous states.

According to experts, the exercise would help give a direction to the states and UT to work on their policies and infrastructure to attract both investors and exporters.

It would give an empirical tool to the states and the TU for the introspection of their preparation for export. Exporters will also get an address and guideline, said Indian Institute of Foreign Trade (IIFT) professor Rakesh Mohan Joshi.

The government is already carrying out a similar exercise to classify the states and UT in the ease of doing business.

Several measures are being taken to promote foreign trade, as it constitutes 45 percent of the country's economy. There is an objective to increase the share of the country's exports in world trade.

India's share of world merchandise exports and services was 1.7% and 3.4%, respectively.

The country's exports fell 2.39 percent to USD 159,570 million during April-September 2019-20.

Since 2011-12, India's exports have been around USD 300 billion. During 2018-19, shipments totaled USD 331 billion. Promoting exports helps a country create jobs, boost manufacturing and earn more currencies. RR HRS