NITI Aayog's Export Preparedness Index 2024 and Wholesale Inflation Uptick signal India's economic momentum toward $1 trillion exports amid easing deflation. These developments offer UPSC aspirants rich material linking governance, economy, and current affairs.
Key Facts:
NITI Aayog released the 4th Export Preparedness Index (EPI) 2024 on January 13, 2026, evaluating all states/UTs across 4 pillars—Export Infrastructure, Business Ecosystem, Policy & Governance, Export Performance—with 13 sub-pillars and 70 indicators, including new metrics like macroeconomic stability and MSME access. Maharashtra topped large states (68.01 score), followed by Tamil Nadu (64.41), Gujarat (64.02), Uttar Pradesh (62.09), Andhra Pradesh (60.65); Uttarakhand led small states/UTs (52.07), then Jammu & Kashmir (51.08), Nagaland (46.42). Separately, wholesale price index (WPI) inflation rose to 0.83% in December 2025 from -0.32% in November, driven by manufactured products (1.82%), primary articles (0.21%), ending 7-month deflation trend.
Analytical Insights
EPI 2024 shifts focus to district-level strategies, promoting inclusive growth via GVC integration and Viksit Bharat@2047 vision, but reveals gaps in laggard states needing policy reforms for $1 trillion merchandise exports by 2030. Inflation rebound, below RBI's 4% target, stems from food/manufacturing pressures, signaling potential policy tightening while supporting export competitiveness through stable costs . For Odisha (Challenger category per prior editions, though not top-5 here), it underscores leveraging ports like Paradip for eastern export hubs.
Expert Views
NITI Aayog CEO B.V.R. Subrahmanyam stressed states' role in export infrastructure and transparent policies to seize trade opportunities. Member Dr. Arvind Virmani emphasized PM Modi's product quality focus for global edge, urging structural gap closure. Economists note WPI uptick as mild, with accommodative RBI stance intact amid low retail inflation (1.3%).
Static-Dynamic Linkage
Static: EPI framework draws from constitutional federalism (7th Schedule trade lists), NITI Aayog's evolution from Planning Commission (GS-2 Governance), WPI computation by Office of Economic Adviser (Economic Survey basics, GS-3).
Dynamic: 2026 release aligns with $1T export pledge (Union Budget 2023-24), post-COVID GVC shifts; inflation data ties to MPC decisions under Inflation Targeting Act 2016 .
Prelims Questions
- Which state topped NITI Aayog's EPI 2024 for large states? (a) Gujarat (b) Maharashtra (c) Tamil Nadu (d) Uttar Pradesh
- WPI inflation in Dec 2025 was primarily driven by rise in: (a) Fuel (b) Manufactured products (c) Primary articles (d) All
- EPI 2024 has how many pillars? (a) 3 (b) 4 (c) 5 (d) 13
Mains Questions
- "EPI 2024 underscores subnational competitiveness as pivotal to India's $1 trillion export ambition. Discuss its pillars and implications for federal economic strategy." (GS-3 Economy) [1]
- "Examine the interplay between moderating wholesale inflation and export preparedness in sustaining India's growth trajectory amid global uncertainties." (GS-3)
Model answers address the Prelims MCQs and Mains questions with UPSC-style precision, incorporating facts from official releases.
Prelims Answer Key:
1. (b) Maharashtra
2. (b) Manufactured products
3. (b) 4
Prelims Explanations
Maharashtra topped large states in EPI 2024 with 68.01 score, ahead of Tamil Nadu (64.41) and Gujarat.
WPI rise to 0.83% in Dec 2025 was led by manufactured products inflation at 1.82%, up from 1.33%, due to machinery, food products, textiles.
EPI 2024 uses 4 pillars (Export Infrastructure, Business Ecosystem, Policy & Governance, Export Performance), 13 sub-pillars, 70 indicators.
Mains Model Answer 1
Introduction: NITI Aayog's Export Preparedness Index (EPI) 2024 fosters competitive federalism to propel India toward $1 trillion merchandise exports by 2030, aligning with Viksit Bharat@2047 by benchmarking states on export ecosystems.
Pillars Discussion:
- Export Infrastructure: Assesses logistics, ports, airports; Maharashtra excels via Mumbai/JNPT hubs.
- Business Ecosystem: Covers MSMEs, finance access, human capital; new 2024 focus on cost competitiveness.
- Policy & Governance: Evaluates incentives, institutional frameworks; Gujarat's policy edge noted.
- Export Performance: Measures diversification, GVC integration; district-level granularity promotes clusters.
Federal Implications: Encourages peer-learning (Leaders like Maharashtra vs Aspirers), reduces disparities, boosts employment via local strategies, but demands Centre-state coordination on trade pacts. Challenges include laggards' infrastructure gaps.
Conclusion: EPI operationalizes Atmanirbhar Bharat in trade, urging reforms for inclusive growth. (250 words)
Mains Model Answer 2
Introduction: Wholesale inflation's moderation to 0.83% (Dec 2025) from deflation intersects with EPI 2024's export push, stabilizing costs amid global volatility like US tariffs, Red Sea disruptions.
Interplay Analysis:
- Inflation-Export Link: Low WPI (below 4% RBI target) aids competitiveness via cheaper inputs; manufactured goods rise (1.82%) supports export hubs like Maharashtra/Tamil Nadu.
- Growth Sustainment: EPI's infrastructure pillar benefits from stable prices, enabling GVC entry; food pressures (primary articles 0.21%) risk pass-through to CPI.
- Uncertainties: Geopolitics, rupee volatility challenge trajectory; accommodative policy (RBI cuts) balances growth-inflation.
Policy Way Forward: Integrate EPI with inflation-targeting via state-specific incentives, forex reserves for buffers.
Conclusion: Synergy fortifies resilience, targeting 15% export CAGR for $1T goal. (248 words)