NTBs in Asean making Indian products uncompetitive: Ficci

Non-tariff barriers like cumbersome registration process of pharmaceutical products and complex custom clearance procedures are making Indian products uncompetitive in the South East Asian countries, a Ficci survey said today.

The survey, 'Impact of India-Asean FTA on Indian Industry', said that Indian pharma products face non-tariff barriers (NTBs) like cumbersome registration process in Indonesia.

"There are also other issues of NTBs with Indonesia on carbon black, wheat flour, uncoated writing and printing paper and milk products," it said.

Gems and jewellery companies send their shipments to Thailand through Hong Kong due to high custom duty and complex custom clearance procedures.

The chamber, therefore, asked the government to identify such barriers and resolve them to increase the competitiveness of Indian products in the Asean countries.

It said that quality check should be imposed on the standard of products imported from the Association of South East Asian Nations (Asean), with whom India has implemented a free trade agreement in goods last year.

The survey has also asked the government to closely monitor imports.

It said that although the free trade pact has opened up more opportunities for Indian industries, there has been some negative impact of duty reduction on imports from Asean countries in India�s domestic market.

However, out of the 78 companies that participated in the survey, majority foresaw no negative impact of duty reduction on the domestic market.

About 80% said that the import of products belonging to their sector has not increased from the region since the implementation of the pact.

The remaining 20% felt the imports were rising at a substantial rate in their respective sectors, including engineering products, processed food, textiles, garments, plantation crops and auto parts.

About 40% said that they have seen some negative impact in the domestic market arising out of duty reduction on imports from Asean in to India.

The two sides are intensely engaged in widening the scope of the free trade pact by including services, the mainstay of the Indian economy, and investments.

"India has made requests for liberalising the movement of professionals to Asean member countries in a number of areas including teaching, nursing, architecture, chartered accountancy and medicine," the survey said.

The country is also keen on expanding its telecom, IT, tourism and banking network in the region, it added.

The Asean countries are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand, Singapore and Vietnam.

India-Asean trade in 2010 was $50.33 billion. Both the sides aim to take it to $70 billion by 2012.