Kerala improves rankings from 19 to 11 in NITI Aayog’s Export Preparedness Index

Kerala improved its ranking to 11 among all states in NITI Aayog’s Export Readiness Index (EPI) 2024 rankings released earlier this week. In the previous 2022 edition of the index, the State was ranked 19th. The State was placed in the competitors category by scoring 44.03 points compared to Maharashtra, which was the leading State with 68.01 points. The index is prepared by taking into account many factors such as export policies, business environment, infrastructure quality and export results.

The report observes that in the financial year, Kerala also experienced a remarkable export growth rate of 86.9% year-on-year, with exports worth Rs 68,375 crore, highlighting the State’s increasing competitiveness in global markets. In 2023-24, Kerala achieved a Gross Domestic Product (GSDP) of Rs 11.1 lakh crore. The Micro, Small and Medium Enterprises (MSME) sector saw significant growth in 2023-24, up 97.7% from the previous year; This points to a thriving entrepreneurial ecosystem.

Kerala’s export profile covers sectors such as petroleum products, spices, seafood, coconut and information technology. Petroleum products account for approximately 48% of the State’s total commodity exports. Of Kerala’s total exports of ₹68,375 crore, ₹32,635 crore comes from petroleum oils, driven by the production and refining capacity of the Kochi refinery. According to the report, the state’s well-diversified export basket reaches more than 100 countries, with strong West Asian connections supported by a large diaspora.

High rankings in Ease of Doing Business, supported by digital platforms such as K-SWIFT and K-CIS, as well as investor-friendly laws such as the Kerala Investment Promotion and Facilitation Act and MSME Facilitation Act, facilitate permits and reduce compliance burdens, the report said. Entrepreneurship incentives and policy support further strengthen Kerala’s competitive, export-friendly ecosystem.

challenges

According to the report, Kerala’s industrial growth is slowing down due to high population, small holdings and lack of large, connected land due to strict land use rules. High costs, local resistance and complex negotiations make land acquisition difficult. It is also stated that strengthening cold chains, modern packaging facilities and spice sterilization units will reduce post-harvest losses and meet stringent international standards. Improved logistics through Cochin and Vizhinjam ports and improved air cargo infrastructure in Thiruvananthapuram, Kochi and Kannur will expand global access for perishable products.

Sounding a note of caution, the report says Kerala’s industrial dynamism and long-term export sustainability could be at risk without strategic interventions to retain talent, boost R&D and foster innovation ecosystems.