India cites 350 US non-tariff measures imposed in 2023, stresses need to lower logistics costs
NEW DELHI : India has cited data from the World Bank, which indicates the presence of 350 Non-Tariff Measures (NTMs) in the United States in 2023. Referring to NTMs such as the Carbon Border Adjustment Mechanism (CBAM) and the European Union Deforestation Regulation (EUDR) imposed by the EU, the Directorate General of Foreign Trade (DGFT) has highlighted that such measures limit market access in advanced countries under the guise of energy transition or climate change.
NTMs like Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) measures are often imposed by foreign countries to restrict imports of various products. TBTs include mandatory technical regulations, voluntary standards, and conformity assessment procedures for agricultural and industrial goods, such as regulations on the size and use of fertilisers in edible products. SPS measures cover basic rules for food safety to protect consumers from food-borne risks, as well as animal and plant health requirements to prevent damage from pests or diseases.
Pointing out India’s high logistics costs, which stand at 8.9% of GDP compared to 5-6% in developed economies, according to data from the National Council of Applied Economic Research (NCAER), the DGFT called for enhanced infrastructure in ports, Inland Container Depots (ICDs), cold chain systems, and warehousing to reduce logistics costs. India launched the PM Gati Shakti initiative on 13th October 2021 to improve multi-modal connectivity and reduce logistics costs. Plans are underway to expand PM Gati Shakti to plan infrastructure projects both within India and at the district level, as well as overseas. The PM Gati Shakti experiential centre in New Delhi was recently praised by former Supreme Court Justice of Hawaii, Michael Wilson.
Addressing the challenges in achieving export targets, the DGFT highlighted issues such as a lack of domestic manufacturing competitiveness, high import tariffs, insufficient integration with Global Value Chains (GVCs), and the critical role of technology as the biggest strategic differentiator, as noted in the Economic Survey 2024. Referring to aggressive industrial policies like the US’s Inflation Reduction Act (IRA) and Chips Act, the UK’s Advanced Manufacturing Plan, and the EU’s Green Deal, the DGFT stated that these measures have narrowed India’s export windows. The DGFT also pointed out that India’s share of manufacturing in GDP has remained stagnant between 13-14% over the past five years.
Source : CNBC TV18