Maharashtra Tops Export Preparedness

Chennai: Maharashtra is the top state in terms of export preparedness, followed by Tamil Nadu, Gujarat, Uttar Pradesh and Andhra Pradesh, as per the Export Preparedness Index 2024 by Niti Aayog.

The index looks at the export infrastructure, business ecosystem, policy and governance, and export performance of states while rating them.

With merchandise exports worth Rs 5.3 lakh crore, Maharashtra’s export performance is anchored by key sectors such as gems & jewellery, engineering goods, electronics, chemicals, and pharmaceuticals. It toppled Tamil Nadu, which topped in the previous edition of the survey.

Despite its strong position, Maharashtra’s export performance saw a year-on-year decline of 7.3 per cent in FY24 dropping from Rs 6.1 lakh crore in FY23 to Rs 5.6 lakh crore with gems and jewellery sector witnessing a reduction of around Rs 30,962 crore.

To counter recent export declines and enhance global trade competitiveness, the Maharashtra Vision 2030 outlines a clear strategy to double the state’s exports by 2030 and increase its share in national exports to over 20 per cent. The plan emphasizes strengthening logistics infrastructure through multi-modal parks, port connectivity, and industrial corridors like the DMIC and Samruddhi Mahamarg, while promoting SEZs and Export-Oriented Units. It aims to diversify the export basket by boosting high-growth sectors such as electronics, biotech, and defence manufacturing.

Tamil Nadu’s export numbers have shown growth and in FY24 it crossed Rs 3.6 lakh crore. A blend of skilled labour, matured infrastructure and forward-thinking policies ensures Tamil Nadu’s place among India’s leading export contributors. Automobiles and auto components, engineering, pharmaceuticals, garments, and textile products are key sectors. Its robust IT industry accounts for a prominent share of India’s service exports.

Despite positive year-on-year export growth, Tamil Nadu’s export sector is facing a slowdown, with the rate of increase diminishing, potentially raising concerns with the formation of a slump. Products like automotive components are susceptible to price fluctuations and demand shifts. Textile exports too saw a slight decline in FY24.

Gujarat’s export profile is heavily skewed towards petroleum and petrochemical products, which make up over half of the state’s total export value, exposing it to global oil price volatility and environmental policy shifts. Despite a strong manufacturing base, the state’s export basket remains heavily dependent on traditional sectors such as petroleum, gems and jewellery, and textiles, limiting diversification into emerging high-growth industries. Export activity concentrated in cities like Ahmedabad, Surat, and Jamnagar are creating disparities in industrial development and infrastructure access.

Gujarat, Maharashtra, and Tamil Nadu continue to be India’s top exporting states, collectively accounting for approximately 56 per cent of the country’s total exports.