As India marches toward the ambitious goal of Viksit Bharat 2047—a developed nation by 2047—the engine of growth must be fueled by exports. The target is clear: $1 trillion in merchandise exports by 2030. However, national targets are achieved only through state-level execution.
The Export Preparedness Index (EPI) 2024, released by NITI Aayog in collaboration with the Institute for Competitiveness, serves as the definitive report card for India’s trade ecosystem. It does not merely rank states; it dissects the structural, policy, and logistical arteries of the Indian economy.
This extensive analysis breaks down the 300+ page report, offering a pillar-by-pillar evaluation, a state-by-state diagnostic, and a roadmap for the future.
Part 1: The Methodology – Measuring the Invisible
To fix a problem, one must first measure it. The EPI 2024 moves beyond simple export volumes (which can be misleading due to commodity price fluctuations) to measure the ecosystem that enables trade.
The 2024 edition introduces significant enhancements over the 2022 version, incorporating new dimensions like Macroeconomy, Cost Competitiveness, and the MSME Ecosystem. The evaluation is built upon a robust framework of 4 Pillars, expanded into 10 Sub-pillars (functionally 13), and measured across 70 Indicators.
The Four Pillars of Export Readiness
The following table details the weightage and focus of each pillar, forming the backbone of the index:
| Pillar | Weightage | Core Objective | Key Indicators & Data Points |
|---|---|---|---|
| 1. Export Infrastructure | 20% | The Hardware: Does the state have the physical capacity to move goods? | • Logistics (10%): Road density, rail connectivity, dry ports, and cold storage capacity.<br>• Utilities (10%): Availability and cost of industrial power and water. |
| 2. Business Ecosystem | 40% | The Soil: Is the environment conducive to business growth? | • Macroeconomy (10%): GSDP growth, fiscal deficit.<br>• MSME Ecosystem (10%): Number of MSMEs, credit availability.<br>• Human Capital (5%): Availability of skilled labor and R&D institutes. |
| 3. Policy & Governance | 20% | The Software: Is the government actively supporting exporters? | • Export Policy (15%): Existence of state-specific export policies and investor charters.<br>• Regulatory Environment (5%): Ease of obtaining certifications and resolving grievances. |
| 4. Export Performance | 20% | The Output: What are the actual results? | • Growth & Diversification: Year-on-year export growth, diversity of the export basket, and global market penetration. |
Critical Insight: The heaviest weightage (40%) is assigned to the Business Ecosystem, reflecting the reality that a state cannot be a good exporter if it is not first a good place to do business. Factors like power costs, labor availability, and access to finance are foundational.
Part 2: The Titans – Analysis of Large States
The report categorizes states to ensure fair comparison. Large States account for the overwhelming majority of India’s industrial output and export volume.
The Leaderboard: Large States
| Rank | State | Score | Classification | Key Strength |
|---|---|---|---|---|
| 1 | Maharashtra | 68.01 | Leader | Diversified basket (Gems, Auto, Engg) & Port Infrastructure. |
| 2 | Tamil Nadu | 64.41 | Leader | Electronics powerhouse & Auto components. |
| 3 | Gujarat | 64.02 | Leader | Petroleum & Chemicals dominance; Coastline advantage. |
| 4 | Uttar Pradesh | 62.09 | Leader | Mobile manufacturing clusters & huge MSME base. |
| 5 | Andhra Pradesh | 60.65 | Leader | Marine exports (Shrimp capital) & Pharma. |
| 6 | Karnataka | 59.30 | Leader | Service-led exports & High-tech manufacturing. |
| 7 | Punjab | 58.32 | Leader | Agriculture (Basmati) & Textiles. |
| 8 | Telangana | 57.14 | Leader | Pharmaceuticals (Vaccines) & IT services. |
Data Source: EPI 2024 Results.
Deep Dive into Key Performers
1. Maharashtra: The Resilient Giant
Maharashtra secured the top rank largely due to its Export Performance and Export Infrastructure.
• Strengths: It is India’s most diversified state. While other states rely on one or two commodities, Maharashtra has strong footholds in Gems & Jewelry, Automotive, Petroleum, and Pharmaceuticals.
• The Warning Sign: Despite ranking first, Maharashtra’s merchandise exports actually declined by 7.3% in FY24 (from ₹6.1 lakh crore to ₹5.6 lakh crore). This was driven by a sharp drop in the gems and jewelry sector due to weak global demand. The state must address high operational costs in Mumbai-Pune to prevent industrial flight.
2. Tamil Nadu: The Electronics Revolution
Tamil Nadu’s rise to the #2 spot is powered by a singular phenomenon: Electronics.
• Success Story: Until FY22, Tamil Nadu ranked 4th in electronics. By FY24, it became India’s #1 electronics exporter, shipping $9.56 billion worth of goods—a staggering 414% increase in three years.
• Strategy: The state aggressively courted global giants like Foxconn and Pegatron, creating massive smartphone assembly clusters in Kanchipuram and Sriperumbudur.
• Weakness: The traditional sectors—Textiles and Leather—are seeing a decline in global market share due to competition from Bangladesh and Vietnam.
3. Telangana: The Landlocked Miracle
Telangana (#8) defies the logic that you need a coastline to be an export leader.
• The Pharma Capital: It exports over ₹24,000 Crore in medicaments annually. The “Genome Valley” cluster has made it the vaccine capital of the world.
• Success Story: The state’s Logistics Policy 2021-26 is a model for others. Recognizing its landlocked disadvantage, the state developed extensive dry ports and Inland Container Depots (ICDs) to seamlessly connect with seaports in neighboring states.
4. Gujarat: The Petroleum Powerhouse
While Gujarat ranks #3, its score is heavily reliant on one sector.
• Dependency Risk: Petroleum and petrochemical products make up over 50% of the state’s total export value. This makes the state economy highly vulnerable to global crude oil price fluctuations.
• The Diamond Hub: Surat processes 92% of the world’s diamonds, but this sector is currently facing a recession due to falling demand in the US and China.
Part 3: The Niche Players – Small States & Himalayan Region
This category highlights how specific policy interventions can overcome geographical disadvantages.
The Leaderboard: Small States, NE & UTs
| Rank | State/UT | Score | Key Export | Unique Strength |
|---|---|---|---|---|
| 1 | Uttarakhand | 52.07 | Pharmaceuticals | Integrated industrial estates (SIDCUL). |
| 2 | Jammu & Kashmir | 51.08 | Horticulture | GI-tagged Saffron and Apples. |
| 3 | Nagaland | 46.42 | Organic Chilli | Niche organic agriculture. |
| 4 | DNH & DD | 46.24 | Plastics/Textiles | Industrial clusters near ports. |
| 5 | Goa | 44.60 | Pharma | High-value, low-volume formulations. |
Data Source: EPI 2024 Results.
Success Stories from the Hills
Uttarakhand: The Industrial Hill State
Uttarakhand is the undisputed leader in this category. Its success is not accidental but policy-driven.
• The Pharma Hub: The state established the Pantnagar and Haridwar industrial estates, offering tax holidays that attracted major pharma companies. Today, it contributes nearly 20% of India’s generic drug output.
• Auto Components: It has also emerged as a significant hub for auto-ancillaries, supplying the major automotive belts in North India.
Sikkim: The Organic Brand
Sikkim (#14 in Small States) has a unique global brand: 100% Organic.
• High Value, Low Volume: Sikkim exports Medicaments worth ₹90 Crore and Cardamom worth vast sums relative to its size.
• Strategy: By banning chemical fertilizers years ago, Sikkim now commands a premium price for its agricultural exports (Large Cardamom, Ginger) in European and US markets.
Jammu & Kashmir: Converting Agriculture to Wealth
J&K (#2) has focused on its natural endowments.
• The Saffron Gold: With the GI tagging of Kashmir Saffron, the state prevents adulteration and commands higher prices globally.
• Lithium Potential: The discovery of lithium reserves in Reasi offers a future opportunity for the state to become a hub for EV battery raw materials.
Part 4: Commodity Analysis – What is India Selling?
The EPI 2024 provides granular data at the HS4 and HS6 commodity code levels. This data reveals the specific engines of state economies.
1. The Pharmaceutical Belt
• Himachal Pradesh: The Baddi-Solan cluster is Asia’s largest pharma hub. “Medicaments” account for nearly 50% of the state’s total exports, valued at ₹8,515 Cr.
• Goa: Despite its size, Goa produces 12% of India’s medicines. Its export basket is 50% pharmaceuticals, driven by a high-literacy workforce capable of meeting US-FDA standards.
2. The Agricultural Basket
• Andhra Pradesh: The state is the undisputed leader in marine products. Exports of Frozen Shrimp and Prawns were valued at ₹19,776 Cr in FY24.
• Tripura: A surprising leader in Rubber. It is India’s second-largest rubber producer. Exports include “Natural Rubber in Smoked Sheets”.
• Nagaland: Famous for the Naga Mircha (King Chilli). The state is leveraging GI tags to export this heat-intensive spice to markets like Bangladesh and the UK.
3. Minerals and Heavy Metals
• Odisha: A classic case of the “Resource Curse.” The state exports massive volumes of Iron Ore (₹21,068 Cr) and Aluminum (₹32,613 Cr). However, it lags in value addition—exporting raw metal rather than finished engineered goods.
• Jharkhand: Similar to Odisha, its basket is dominated by Iron & Steel and Electrical Energy. The report highlights the state’s struggle to transition from mining to manufacturing.
Part 5: Structural Weaknesses – The Roadblocks
No analysis is complete without understanding the failures. The EPI 2024 identifies four critical bottlenecks holding India back.
1. The R&D Deficit
A recurring theme across almost every state profile (except perhaps Karnataka and Telangana) is the negligible investment in Research & Development.
• The Consequence: India competes on cost (cheap labor/materials) rather than innovation. This makes exports vulnerable to countries with even cheaper labor (like Bangladesh or Vietnam).
• Data Point: States like Kerala have high literacy but R&D spending is less than 0.3% of GSDP.
2. Logistics Disparities (Coastal vs. Landlocked)
• Cost of Distance: Landlocked states like Haryana, Punjab, and Madhya Pradesh face significantly higher freight costs to reach ports.
• Infrastructure Gaps: Nagaland and Mizoram suffer from severe connectivity issues. In Mizoram, the lack of cold chains means unique products like passion fruit and ginger often rot before they can be exported.
• Port Congestion: Even coastal states like Odisha struggle because their ports (Paradip/Dhamra) operate at only 50% efficiency due to poor last-mile road/rail connectivity.
3. The “One-Product” Trap
Many states are dangerously over-reliant on a single sector:
• Assam: Tea accounts for more than 50% of total exports. A bad monsoon or a drop in global tea prices cripples the state’s trade balance.
• Gujarat: Over-reliance on petroleum makes it vulnerable to global oil politics.
• Surat (Gujarat): The diamond industry is currently suffering because it put all its eggs in one basket.
4. Limited Access to Export Finance
For MSMEs, getting credit is a nightmare.
• The Gap: In states like Manipur and Tripura, informal businesses and artisans cannot access export credit or insurance because they lack collateral and formal credit history. This forces them to sell to middlemen at low margins instead of exporting directly.
Part 6: The Roadmap to 2047 – Solutions from the Report
The EPI 2024 doesn’t just list problems; it offers a strategic roadmap for states to follow.
1. The “District as Export Hub” (DEH) Model
The report notes that the top 100 districts contribute 88% of India’s exports. The goal is to activate the remaining 600+ districts.
• Action Plan: Every district must identify one product (ODOP), create a specific export plan for it, and build the necessary micro-infrastructure (packhouses, testing labs) locally.
• Example: Varanasi (UP) has successfully revitalized its silk exports by focusing purely on that district’s strengths.
2. Aggressive GI Tagging and Branding
India loses value because its generic products compete with commodities.
• Solution: Ladakh (Sea Buckthorn/Apricot) and Meghalaya (Lakadong Turmeric) are urged to use Geographical Indication (GI) tags to market their products as premium, exclusive goods, commanding higher prices in Europe and the US.
3. Diversification of the Basket
States must move up the value chain.
• Odisha & Jharkhand: Must stop exporting raw iron ore and start exporting high-grade steel and engineered machinery.
• West Bengal: Needs to modernize its jute and leather sectors to move from raw materials to fashion goods.
4. Green Logistics and Sustainability
With regulations like the EU’s Carbon Border Adjustment Mechanism (CBAM) coming into force, “Green Exports” are no longer optional.
• Strategy: States like Tamil Nadu and Telangana are investing in EV manufacturing and renewable energy parks to ensure their exports meet global “green” standards.
Conclusion
The Export Preparedness Index 2024 reveals a nation running at two speeds. On one side, coastal giants like Maharashtra and Tamil Nadu are integrating into complex Global Value Chains (GVCs) with electronics and automobiles. On the other, resource-rich states in the interior and the Northeast are struggling with basic connectivity and value addition.
For India to hit the $1 trillion mark, the “Challenger” and “Aspirer” states must step up. The formula provided by NITI Aayog is clear: Decentralize planning to the district level, diversify the export basket beyond raw materials, and invest heavily in the “soft infrastructure” of R&D and quality certification.
As the report concludes, exports are not just about foreign exchange; they are about employment, innovation, and the structural transformation of the Indian economy toward Viksit Bharat.
All data, rankings, and insights in this blog are derived directly from the “Export Preparedness Index 2024” report by NITI Aayog and the Institute for Competitiveness.
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