Why northeast states must improve their business and export ecosystem

Guwahati: A recent report by NITI Aayog titled ‘Export Preparedness Index (EPI) 2022’ reveals that the northeastern states of Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram are performing below the national average in terms of exports.

The report, released by Vice Chairman Suman Bery, aims to evaluate India’s export scenario and provide valuable insights to states and stakeholders for targeted strategies and improvements.

The report examines four key pillars: Policy, Business Ecosystem, Export Ecosystem, and Export Performance, using 56 indicators to assess the export preparedness of states and union territories. The northeastern states need to focus on enhancing their business and export ecosystems, particularly in the manufacturing sector, which has experienced a decrease in value addition across all states except Arunachal Pradesh.
To improve export performance, the report recommends measures such as improving foreign direct investment (FDI) inflows, addressing power deficits in Arunachal Pradesh, and strengthening linkages between industries to enhance cluster strength. It also highlights the importance of improving connectivity and establishing air cargo terminals, cold storage, and warehouses to facilitate exports and overcome geographical disadvantages.