Export Propensity Index Analysis

Analyzing Export Propensity Index (EPI)

EPI denotes the overall degree of reliance of domestic producers on foreign markets. Higher the EPI, tendency of domestic producers to export as against selling in domestic market is predominant. Hence higher EPI would indicate acceptance of Indian exports in the world market on one hand. On the other, it also indicates less competition in the domestic market. Hence an export startup should pick up the sector with high EPI, operate for a few years in the domestic market without much competition and then plunge into the export market which in any case is promising.