According to a recent report by the National Institute of Technology (NIT) Aayog on the Export Preparedness Index 2022, the northeast states of Manipur (Manipur), Tripura (Sikkim), Nagaland (Mizoram), Meghalaya (Arunachal Pradesh), and Mizoram are lagging behind the national average when it comes to exports.
The objective of the report, which was issued by Vice-President Suman Bery on behalf of the Government of India, is to assess the current export situation of India and to provide useful information to Member States and interested parties for the development of targeted strategies and improvements.
The report focuses on four fundamental pillars: Policy; Business Ecosystem; Export Ecosystem; and Export Performance. It uses 56 indicators to evaluate the export readiness of the States and Union Territories. It is essential for the Northeastern States to strengthen their respective business and export eco-systems, especially in the manufacturing industry, which has witnessed a decline in value addition in all but one state, Arunachala Pradesh.
Insights About the Reports
The report focuses on four fundamental pillars: Policy; Business Ecosystem; Export Ecosystem; and Export Performance. It uses 56 indicators to evaluate the export readiness of the States and Union Territories.
 It is essential for the Northeastern States to strengthen their respective business and export eco-systems, especially in the manufacturing industry, which has witnessed a decline in value addition in all but one state, Arunachala Pradesh.
The report suggests that measures to enhance export performance should be implemented, including increasing FDI inflow, addressing power shortages in the State of Arunachal, and strengthening inter-industry connections to strengthen the cluster strength. Furthermore, it emphasizes the importance of improved connectivity and the establishment of air cargo terminals and cold storage and warehouses to facilitate export and overcome geographical handicaps.
What Basically the Reports Suggests About The Economy of North East
The report also proposes the development of knowledge dissemination portals to facilitate exporters, the organization of exhibitions and capacity building workshops, and the utilisation of the northeastern states’ rich cultural heritage to create distinctive export products. It further emphasizes the need to identify more GI(Geographical Indication) products for export in order to broaden the export portfolios of the northeastern states.
The report finds that Sikkim performs approximately in line with the national average when it comes to policy support. However, Mizoram is lagging behind due to a lack of export-promoting policy measures. Furthermore, Assam faces difficulties when it comes to export promotion policy, as only 37% of its districts have developed plans. The report highlights the need for sectoral policy measures, disseminating information on quality standards to the public, and promoting exports through awards or incentives.
Thus, Arunachal Pradesh’s and Sikkim’s institutional framework needs to be improved in order to facilitate growth, as there are no coordination cells or institutionalised grievance redressal mechanisms for exporters. Mizoram has a lack of a one-window facility, whereas Assam, Odisha, and Mizoram offer significant value-added in the manufacturing sector.
According to the report, the export performance of states such as Odisha and Gujarat, as well as Karnataka, showed a significant increase in exports in the year 2021-22 as compared to the year 2019-20, which saw a decrease in exports due to the pandemic.
Gujarat was the top exporting state in the country with an export value of USD 127 billion, accounting for more than 30% of India’s total merchandise exports.
On the whole, the report emphasizes the need for specific initiatives and improvements in a variety of areas to improve export performance of northeastern states in order to increase their competitiveness in the international market.
