Bihar ranks 30th in Niti export index

PATNA: With a score of 21.5, Bihar is at the 30th position in the overall rankings of NITI Aayog’s Export Preparedness Index 2020 while neighbouring Jharkhand is ranked 14th rank with a much higher score of 48. The index has ranked 36 states and Union Territories on their export preparedness.Gujarat bagged the first position followed by Maharashtra and Tamil Nadu in the overall rankings based on four parameters— export policy, business ecosystem, export ecosystem and export performance.Leading economist Shaibal Gupta said the export ecosystem in the state is underdeveloped because of the small market size and minimal industrial activity. “Given the economic profile of Bihar, other than agricultural commodities like makhana and silk fabrics from Bhagalpur, domestic and international exports have a limited scope. It is due to low economic activity and small industry size in Bihar.”The report has also divided the states and UTs into four categories— coastal (8 states), landlocked (11), Himalayan (9) and UTs/city-states (8). Bihar is at the second last position among all landlocked states in India."Though Bihar exported 9.35 lakh MT of agricultural products amounting to Rs 2,025 crore during 2018-19, its share of export among Indian states stands at 0.5%, which is one of the lowest," said Barna Ganguli, assistant professor at the Asian Development Research Institute (ADRI), Patna. She added, "The low exports from the state can be attributed to many factors, including lack of established export houses in the states. At present, commodities from the state are exported through middlemen or traders who charge additional money from the manufacturers for the same.” She further said, "Other than agricultural products, Bihar also exports leather, processed food, textile, handloom, Madhubani paintings and Bhagalpur silk. However, there is no export policy in the state as of now.” Satyajeet Singh, a leading makhana exporter, said in the absence of dry ports in Bihar, exporters from the state have to go to other states such as like Maharashtra or West Bengal to load their containers and get customs clearance. Singh exports makhanas to 12 countries, including the US, the UK and the Middle-East. “There is no dry port or customs clearance in Bihar. Either I have to load my containers at Kolkata port or Mumbai port and get customs clearance from there. In the absence of any export infrastructure in the state, exporters have to pay the additional transportation and manpower costs,” he said.Singh added, “Not just in terms of export infrastructure, other factors such as comprehensive export policy, R&D infrastructure and access to finance should also be taken into consideration by the government to boost exports from the state.”