EEPC asks govt to take up non-trade issues with Russia

Engineering exporters body EEPC today asked the government to take up the issue of non-trade barriers with Russia to allow better market access to Indian products.
"We urged the high-level official delegation accompanying the Prime Minister to impress upon the Commonwealth of Independent States (CIS) countries, particularly Russian leadership to allow better market access to the Indian products," Engineering Export Promotion Council (EEPC) said in a statement.
Non-tariff measures (NTMs) adopted by the CIS countries play a major role in determining the market access of exporters.
Among the CIS countries, Russia is the most intensive user of these measures, followed by Kazakhstan and Belarus, it said.

Apart from the technical barriers, there are a number of NTMs such as a cumbersome customs procedure and documentation process which hinders India's exports, it added.
"Most of the CIS countries adopt significantly large domestic value content criteria, whereby the exporters from other countries outside CIS are restricted," it said.

It added that there is very less interaction in terms of strengthening commercial relations between the business communities of India and CIS.
Geographical distance, inadequate transit facilities, costly and cumbersome exports, lengthy process, poor logistic facilities, weak and unsound banking and financial institutions, language barriers and weak legal systems are the major issues which need to be sorted out to enhance trade ties, it said.

It added that Prime Minister Narendra Modi's visit to the Commonwealth of Independent States countries will help in strengthening trade ties between this region and India.
India's engineering exports stood at USD 71 billion in 2014-15 and the exports to the CIS countries were only USD 960 million, of which 70 per cent were shipped to Russia and Ukraine, it added.