How India Faces Trade Protections? An Analysis of Trade Barriers

Abstract

India has been witnessing falling shares in world exports and imports. India faces significant non-tariff barriers that limit its trade with the world. Any sort of trade protection such as tariff and/or non-tariff raises the price in home market while lowering the price in foreign market. Number of such barriers has increased in the first half ongoing decade. In terms of imposition of new SPS/TBT measures, EU comes at the top, followed by Japan and USA. The major concern today is how to revive India’s export growth in the wake of slow growth of trade in world and rising trade protections. This article analyses the intensity of trade barriers that India has been facing in global market. One of the policy recommendations of this article is that India has to continue with trade policy reforms to improve competitiveness, thereby bringing back the confidence of exporters and importers in the economy. Simulations of this article show that India is likely to gain enormously from trade facilitation, which could generate benefits all its trade partners.