India to address non-tariff barriers in ASEAN-India FTA review

India is set to prioritise the examination of non-tariff barriers during its review of the ASEAN-India Free Trade Agreement (FTA). Since the FTA's implementation in 2010, India's trade with ASEAN nations has significantly increased. However, India faces a substantial trade deficit, prompting the government to address non-tariff barriers. Regarding textile trade, India engages in trade encompassing garments, fabrics, and various other products with ASEAN countries. The bilateral trade has exhibited significant volatility in recent times. 

Industry sources have revealed that the government is soliciting input from exporters regarding the intricate rules associated with non-tariff barriers. Such barriers may encompass quality and technical standards, as well as complex rules of origin. India aims to effectively negotiate the terms of the FTA during the review process, which is expected to continue for several months, possibly concluding by 2025. The FTA was initially implemented in 2010 with a regional bloc of 10 Southeast Asian countries, including Indonesia, Malaysia, The Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia. 

India exported fabric worth $210.048 million to ASEAN countries during January-August 2023, compared to $368.686 million in 2022, $244.281 million in 2021, $213.659 million in 2020, and $365.919 million in 2019. Additionally, India imported fabric valued at $113.408 million during the same period, compared to $185.565 million in 2022, $108.468 million in 2021, $68.156 million in 2020, and $95.736 million in 2019, according to Fibre2Fashion’s market insight tool TexPro. 

Apparel exports from India to ASEAN during the first eight months of 2023 amounted to $141.019 million, as opposed to $236.246 million in 2022, $147.966 million in 2021, $152.317 million in 2020, and $258.028 million in 2019. Conversely, India imported apparel worth $111.798 million from ASEAN nations during the same period, compared to $211.485 million in 2022, $103.146 million in 2021, $79.923 million in 2020, and $98.183 million in 2019. 

Yarn exports from India to ASEAN reached $206.335 million during the first eight months of 2023, while they were $283.717 million in 2022, $389.416 million in 2021, $330.169 million in 2020, and $353.737 million in 2019. Simultaneously, India's imports of yarn amounted to $166.323 million during the same period, compared to $314.501 million in 2022, $298.408 million in 2021, $165.314 million in 2020, and $331.131 million in 2019, as per TexPro. 

India's export of all types of fibre during the specified period totalled $92.431 million, contrasting with $206.201 million in 2022, $550.703 million in 2021, $281.062 million in 2020, and $199.448 million in 2019. In parallel, India imported fibre valued at $170.259 million, compared to $449.064 million in 2022, $201.324 million in 2021, $127.313 million in 2020, and $247.796 million in 2019. 

ALCHEMPro News Desk (KUL)