India begins global mapping of non-tariff measures to boost export compliance

India has started a detailed mapping of mandatory and voluntary non-tariff measures (NTMs) in major markets across the world as part of its efforts to ramp up export product quality and technical compliance in accessing major markets.

In a note to the Indian commerce ministry, the Directorate General of Foreign Trade (DGFT) said it is compiling a database of regulatory requirements, including certifications, testing protocols, inspections, audits and labelling norms, to support the recently approved Export Promotion Mission.

The DGFT sought inputs from exporters, export promotion councils, commodity boards and industry bodies in the form of information on NTMs within seven days.

It cautioned that non-submission of inputs may result in the relevant certifications or NTMs not being prioritised and consequently affect future support measures.

According to DGFT officials, NTMs matter because they relate to technical rules like standards, testing, certification, pre-shipment inspection and non-technical rules such as quotas, licensing, subsidies and procurement restrictions imposed by importing countries.

While technical rules are often built around safety, health or environmental protection issues, NTMs can become non-tariff barriers (NTBs) when they become arbitrary or go beyond scientific justification.

Although there is recognition that compliance with these rules raises the costs for exporters, it ends up being beneficial in the long run to sell exporters' products in key markets, they said.

Meanwhile, India also introduced an updated Trade Intelligence & Analytics (TIA) portal that Commerce Minister Piyush Goyal said will unlock new insights into data for importers, exporters, startups, MSMEs and smaller businesses even in the remotest regions. 

The facility was previously available only to larger enterprises.

The minister said the portal will help exporters better utilise free trade agreements. 

He made it clear that unless exports contribute significantly to India's foreign exchange reserves, it will be difficult to stabilise forex rates and the value of the Indian rupee. 

Without such stability, India will remain vulnerable to foreign forces, he added.

Goyal said the portal has the potential to support trade diversification and expand India's trade basket to newer areas and newer products.

Goyal described the global tariff situation as a wake-up call and urged that the government and the private sector pool resources at this critical moment to avoid regretting a lost opportunity.

In view of the need for a robust intelligence and analytics framework to support evidence-based policymaking and enable targeted sectoral interventions, the commerce ministry initiated the TIA Portal in March 2024.

The portal caters to various perspectives, including India, global and bilateral trade, with multiple databases covering trade and macro-economic indicators, providing trade insights crucial for informed decision-making. 

It also provides country and commodity-level intelligence through specialised tools and visualisations that allow users to identify global and bilateral trends with analytical capabilities for identifying market diversification opportunities.

The portal also incorporates trade indices such as the trade complementarity index, which assesses alignment between India's export profile and partner countries' import needs, and the comparative advantage index, which highlights products where India holds a competitive edge.