The NITI Aayog has asked the Maharashtra government to take measures to support its manufacturing sector as its value addition to the State economy has suffered a setback.
NITI Aayog in its third edition of the report titled ‘Export Preparedness Index (EPI) 2022’ has stated that although the State has the second highest inflow of Foreign Direct Investment (FDI), which can be attributed to its nurturing business ecosystem, it has decreased in value over the previous year by nearly $730 million.
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“Taking measures to enable growth in its manufacturing sector, and consistently increasing its FDI inflow can help the state in improving on its current performance, and use exports to increase development in the State,” the report added.
Maharashtra exported products worth over $73 billion in 2021-22, with its top products being diamond and jewellery products, automobiles, petroleum products, and pharmaceutical products.
“The State has recorded an exceptional policy ecosystem to facilitate exports by formulating district-level and sector-specific export promotion policies, along with identifying thrust sectors, strategised investments in which can further boost its exports,” the report added.
Robust Economy
The State has also crafted a robust business ecosystem laced with a high number of industry-specific parks (311), which contribute to its high cluster strength (80). All of its districts are exporting districts and have connectivity facilitated by air cargo terminals and Free Trade Zones.
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The report added that these measures have helped it build a robust business ecosystem which has contributed to its exceptional export performance. In numbers, the State currently has over 32,000 exporters and an increase in export from $58 billion in 2020-21 to its current value.
The EPI 2022 report seeks to empower State governments with region-specific insights to assist decision-making, identify strengths, address weaknesses and foster comprehensive growth across States and UTs of India. The EPI also recognises that by unlocking regional competitiveness and leveraging innate diversity, India can enhance its export potential.