New Delhi: The government is likely to release the first index to rank states and Union territories based on their preparedness to promote exports, an official said.
The exercise would help in promoting healthy competition among states and UTs to work on parameters for promoting the country's exports, which is one of the key indicators for boosting economic growth.
The index will rank them on some key parameters such as business environment, infrastructure, transport connectivity, access to finance, export infrastructure and trade support, the official said.
Both the Niti Aayog and the commerce ministry is working on this index.
Besides overall ranking, it will also be there for coastal states, landlocked states and hilly states.
According to experts, the exercise would help in giving a direction to states and UTs to work on their policies and infrastructure to attract both investors and exporters.
"It would give an empirical tool to states and UTs for introspection for their export preparedness. Exporters will also get a direction and guideline," Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said.
The government is already carrying out similar exercise to rank states and UTs on the ease of doing business.
Several steps are being taken to promote foreign trade as it constitutes 45 per cent of the country's economy. There is a target to increase share of the country's exports in global trade.
India's share in global merchandise exports and services was 1.7 per cent and 3.4 per cent, respectively.
The country's exports dipped by 2.39 per cent to USD 159.57 billion during April-September 2019-20.
Since 2011-12, India's exports have been hovering at around USD 300 billion. During 2018-19, the shipments aggregated at USD 331 billion.
Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.