Chinese market barriers hampering Indian exports

According to economic think tank Global Trade Research Initiative (GTRI), China’s regulatory and internal market barriers are hampering Indian exports to its neighbour, along with other factors. GTRI suggested mirroring the restrictions on Chinese exports to India and take up all the market access issues faced by Indian exporters.

GTRI said that considering India exports to over a 100 countries worldwide, the quality of exports shouldn’t be a problem that hampers Indian exports to China. In fact, apart from the regular customs regulations, China uses four significant barriers to control imports from India. These are regulatory, internal market, trade defence, and political barriers.

An Indian firm exporting to China needs to register its product with the specified Chinese authority, which means submitting many documents, including details about the firm and its products. There is also a requirement of meeting the inspection, product testing, and quality certification. On the other hand, for a Chinese company exporting to India, there is a simple registration system, making the entire process much simplified.

In light of the aforesaid facts, it becomes obvious that China slipped from 2nd position in India’s top export destinations, and landed at the 4th position during April to August 2022. India’s exports to its neighbour dropped 35% to USD 6.8 billion during the said period.

India’s major exports to China include engineering goods, agricultural and allied products, ores and minerals, chemicals and related products, and petroleum and crude products.

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