Assam ranks 24th in Export Preparedness Index 2024: NITI Aayog

GUWAHATI, Jan 19: Assam has been ranked 24th among 36 states and Union territories in the ‘Export Preparedness Index 2024’, which assessed their export readiness and potential for growth.

Assam’s rank is below Nagaland and Tripura in the assessment which was done in terms of export infrastructure, business ecosystem, export performance and policy and governance, broken into 70 parameters.

Exports from the State stood at Rs 3,700 crore in the financial year 2024.

The major export for Assam is tea, where the State has a long-standing global reputation. Coke and semicoke form another key category, supported by coal availability and small-scale coke production units in the region.

The export of medicaments has also grown, aided by pharmaceutical manufacturing hubs near Guwahati that produce formulations and antibiotic-based medicines for domestic and global markets. Lastly, coal and bituminous coal contribute to resource-based exports, facilitated by state-owned coal mining operations, stated the index by Niti Aayog.

Beyond these leading segments, the report highlighted that several commodities represent untapped potential for export growth. For instance, Assam exports wood charcoal and shell/nut wood in small volumes, indicating possible opportunities for expanding exports through better value addition and sustainable forestry practices.

Similarly, in the fragrances and cosmetics segment, products like odoriferous substances and skincare preparations are emerging exports that could benefit from branding, quality enhancement, and targeting niche global markets.

Sesame seeds and other oleaginous fruits also present growth potential, given Assam’s agri-climatic suitability for oilseed cultivation.

“If supported by processing infrastructure and certification schemes, these could be positioned for exports to East and Southeast Asian markets,” it noted.

Even as it mentioned some of the key strengths of the State like growing infrastructure connectivity, the reported observed that 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.

“Assam’s export value chain is weakened by the shortage of NABL-accredited and EIC-approved testing centres for tea and agri-products. Exporters are majorly dependent on out-of-state labs in Kolkata and Hyderabad, leading to delays, higher logistics costs and certification bottlenecks. This hampers export competitiveness, especially for small and medium enterprises,” it stated.

Further, inadequate cold chain infrastructure, and limited cargo services have worsened logistics inefficiencies.

Dependence on third-party logistics and inter-state hubs raises operational costs and weakens export competitiveness. The State’s export concentration is another risk, with Bhutan accounting for approximately 23 per cent of total exports, making Assam vulnerable to disruptions in bilateral trade.

In addition, the State faces a serious threat from unaccounted exports due to exporters bypassing formal trade channels and ignoring standard export procedures. Practices like under-invoicing, non-registration, and routing through informal networks or neighbouring states lead to revenue loss and distorted trade data. This compromises product traceability, damages Assam’s export credibility, and hinders the development of a transparent export ecosystem, it added.