Northeast states show mixed export readiness in NITI Aayog’s EPI 2024

Guwahati: Export preparedness across Northeast India presents a mixed picture, with states like Nagaland, Tripura, and Assam emerging as regional leaders, while others continue to struggle with infrastructure gaps, limited value addition, and low export volumes, according to the Export Preparedness Index (EPI) 2024 released by NITI Aayog.

The index ranks states and Union Territories based on export infrastructure, business ecosystem, policy and governance, and export performance. Among the Northeast states, Nagaland (Rank 3), Tripura (Rank 6), and Assam (Rank 7) have been classified as “Leaders” in the Small States, NE & UTs category, reflecting relatively stronger export ecosystems.

Overall, Nagaland is ranked 18th in the country, followed by Tripura in 22nd position.

The EPI notes that Tripura’s improved connectivity, particularly through the Agartala–Akhaura corridor and access to Bangladesh, has helped boost export facilitation, while Assam’s diversified export base, including tea, petroleum products, and agri-commodities, continues to anchor its regional leadership.

Nagaland, despite its small economy, stands out for its policy-driven export approach and niche product focus, helping it outperform several larger states in the region.

"While Nagaland’s current exports are dominated by coal and forest products, there is clear potential for growth in other segments. Categories such as printed books, leaflets, and parts for machine tools, including tool holders for machines, represent opportunities for industrial diversification and expansion. The development of local manufacturing ecosystems and the enhancement of artisan skills could help scale up exports in these areas. Focusing on sustainable resource management, product innovation, and improved market access will be crucial for Nagaland to leverage its diverse export potential and drive broader economic growth," the report states.

Exports from Assam stood at Rs 3,700 crore in FY24. Assam’s export base remains narrow, with tea alone accounting for more than half of total merchandise exports. This over-reliance on a single commodity exposes the state to global price fluctuations and climate-related disruptions, weakening its export resilience. Simultaneously, limited high-value job opportunities are prompting youth migration to larger cities, resulting in a growing gap in the availability of skilled talent, particularly in innovation-driven industries.

Meghalaya, ranked 27th overall in the country and 10th among Small States, NE & UTs, has been placed in the “Challenger” category. The state’s exports remain largely resource-based, dominated by limestone, quartz, and niche agri-products such as Lakadong turmeric. However, the report flags poor connectivity, limited cold-chain infrastructure, and low value addition as key constraints.

Sikkim, another Challenger, continues to rely heavily on pharmaceutical exports and organic agri-products, with logistics bottlenecks and dependence on distant ports limiting scale.

States such as Arunachal Pradesh (Rank 15), Mizoram (Rank 17), and Manipur (Rank 18) have been categorised as “Aspirers,” reflecting low export readiness. The EPI highlights challenges, including difficult terrain, weak transport infrastructure, limited industrial base, and low awareness of export procedures among MSMEs as major barriers to export growth.

A key opportunity identified across the Northeast is cross-border trade with Bangladesh, Bhutan, and Myanmar. States with functional land customs stations and border haats are better positioned to leverage this advantage, particularly for agri-products, minerals, and forest-based goods.

However, the report stresses that without investments in logistics, warehousing, processing facilities, and export-oriented clusters, much of the region’s trade will continue to remain low-value and informal.

Despite rich natural resources, biodiversity, and GI-tagged products, the EPI 2024 notes that most Northeast states export raw or semi-processed goods, limiting income and employment generation.

Strengthening district-level export planning, improving cold chains, and expanding access to export finance for MSMEs are seen as critical steps to improve the region’s export competitiveness.

As India pushes toward its Viksit Bharat 2047 goals, the index underlines that targeted policy support and infrastructure investment in the Northeast could unlock significant untapped export potential, turning the region from a peripheral player into a strategic gateway for cross-border trade.