Published: Updated at 01:09 AM Sun, 27 March 22
Hyderabad: According to the second edition of the NITI Aayogs Export Preparedness Index (EPI-2021), Telangana topped the list for creating the best business environment. A strong business environment is a key factor in attracting investment to any region. Telangana was the top performer in this category with a score 100, while neighboring Andhra Pradesh received 99.61 and Gujarat 99.5.
Telangana is also among the top five exporting States. Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Telangana contribute 75 per cent of the country’s overall exports, Niti Aayog said.
Telangana, a state that is landlocked, has the highest performance with 100 scores. Uttar Pradesh and Rajasthan are behind. This is due to its innovation index performance, and lower power costs. Hyderabad, Telangana’s capital, is a hub for Information Technology and the pharmaceutical industry.
This is also reflected in its top 10 export basket commodities,” the report further said.
Hyderabad is becoming a data centre hotspot. Niti Aayog stated that IT, ITeS and pharmaceuticals are the key drivers of significant ticket investments. The National Payments Corporation of India, (NPCI), invests $70 million (about Rs 525crore) in its Tier-IV data centre in Hyderabad. This is reflected in its 48.6 Ease-of-Doing Business score.
“Telangana’s performance is a positive outlier; hence it must be understood relative to other States. The report noted that the States have made great efforts to improve the business climate. It acknowledged that there is still room for improvement.
Telangana is ranked fifth among landlocked states in export readiness. Among landlocked States, Haryana (53.20), Uttar Pradesh (51.09), Madhya Pradesh (51.03), Punjab (50.99) and Telangana (47.92) got the first five rankings respectively. Telangana ranked 10th in the overall ranking for export preparedness with a score 47.92.
“Telangana and Jharkhand need to fill gaps in their infrastructure facilities to improve the overall export ecosystem,” the report further said. Niti Aayog published an Export Preparedness Index last year to increase competition between States and encourage them adopt export promotion policies. The EPI provides a snapshot of the State-level opportunities and challenges in the sector of export. The EPI examines the export policy, business environment, export ecosystem, and export performance in all the States. It also offers policy suggestions for future implementation.
This year’s Export Preparedness Index framework is an improved version of its previous edition as it also includes information about the export-related policy at the district level. Telangana ranked tenth in the overall ranking with a scoreof 47.92. It was fifth in the category of landlocked States with a score 47.92. It was 12th in policy pillar (66.45), 7th in business ecosystem pillar (54.88), 12th export ecosystem (33.24), and 9th in export performance (31.67).
“On the export infrastructure, in the landlocked category Telangana (17.45) and Jharkhand (16.50) need to fill gaps in their infrastructure facilities to improve the overall export ecosystem. This can be achieved by creating SEZs for export promotion in the regions, and making trade guides more transparent with relevant export information. It suggested that this will improve the existing export infrastructure and increase export of various commodities as well as services. Telangana is now in fourth place in the category of landlocked countries. Its performance in the business environment and access to finance has improved. However, its overall scores in the export ecosystem and export performance areas have declined. It stated that the State must also increase its efforts to strengthen policy measures in order to achieve better performance in the export readiness index.
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