BHUBANESWAR: The highest growth in the industrial sector in the last decade and favourable policies notwithstanding, Odisha has slipped eight places in the recently released NITI Aayog’s Export Preparedness Index 2021.
According to the think tank’s report, the State has slid from the fifth spot in 2020 to 13th place in 2021 with an overall score of 42.04 out of 100. Gujarat topped the list, followed by Maharashtra and Karnataka.
The Export Preparedness Index assesses readiness of the states in terms of their export potential, policies and performance. Other states in the top five ranking include Tamil Nadu and Haryana.
Odisha scored the lowest 1.04 in trade support, 12.33 in R&D infrastructure, 14.59 in infrastructure, 29.63 in export diversification, 31.64 in growth and orientation, 35.17 in access to finance, 35.83 in transport connectivity, 38.72 in export infrastructure, 59.32 in the institutional framework and 62.15 in a business environment.
Among the eight coastal states, Odisha ranked sixth. The State’s score is 26.05 in the overall export ecosystem, 30.64 in export performance, 36.94 in the business ecosystem and 79.66 in policy. Four coastal states including Odisha scored a perfect 100 in export promotion policy.
“A score of 100 here only indicates the state's ability to implement the strategic measures evaluated relative to the rest of the country. Moreover, policy measures alone cannot drive export promotion in any region. States would need to implement these measures to increase their export growth,” the NITI report stated.
Although Odisha, unlike its other high-performing coastal and landlocked counterparts, has not attracted significant investments within the assigned period, it has taken additional measures to create an enabling environment to attract businesses.
The State has been rated as the most cost-competitive state judged by the cost of setting up and running a business. Cost-competitiveness is a practice that can be emulated by other states across all the categories to boost their business environment.
While the performance of Karnataka and Andhra Pradesh improved significantly, there is a fall in the overall ranks of Odisha and Kerala. The State secured 22nd position in the business ecosystem, 18th in export ecosystem, 10th in export performance and fifth place in policy pillar.
Ideally, all coastal states score higher on export performance. Their combined share of exports is more than 54 percent, especially compared to the rest of the country. Odisha exports aluminum ingots (not alloyed) of Rs 13,557 crore to 25 countries, iron ore lumps of Rs 4,308 crore to five countries, agglomerated iron ore pellets of Rs 6,875 core to 10 countries, sheets of flat-rolled products of Rs 4,337 crore to 13 countries and high carbon ferro-chrome of Rs 4,051 crore to 24 countries.
Similarly, the State exports high flash high-speed diesel fuel worth Rs 3,109 crore to 11 countries, vannamei shrimp of Rs 2,787 crore to 24 countries, alumina calcined of Rs 2,526 crore to eight countries and aluminum billets (alloyed) of Rs 2,408 crore to 34 countries.
HIGHLIGHTS
Odisha has scored 100 in export promotion policy
State rated as the most cost-competitive as far as cost of setting up and running a business are concerned
LOWEST GRADES
Trade support - 1.04
R&D infrastructure - 12.33
Infrastructure - 14.59
Export diversification - 29.63