Business · Trade · 6 hrs ago

India’s new trade deals will require exporters to meet tougher standards

India’s new trade deals will require exporters to meet tougher standards

Indian exporters are preparing to use new free trade agreements to sell more goods overseas.

The effort involves businesses across industrial hubs, including textile, garment, engineering and auto-parts makers.

India’s recent trade deals include agreements with the UK and New Zealand, while its deal with the European Union is awaiting implementation.

Lower tariffs depend on meeting trade rules, proving where goods were made and satisfying foreign quality standards.

Some firms are seeking certifications, while industry groups and government agencies are helping businesses understand the requirements.

Smaller firms may struggle to keep up because compliance requires money, reliable suppliers and strong systems.

Turning market access into export orders will take more than signing deals as India seeks to grow manufacturing and compete as an alternative to China.

The EU agreement is expected to be formally implemented early next year.

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What people are saying

Ashish Gujaratichairman and managing director of Aditya Textile Solutions
Many top European brands have set internal targets to sell more recycled fabric so this could be a big market for us. It is not rocket science but getting all these certificates will take up to a year
via Mint
Sanjay Notanipartner at Economic Laws Practice and head of International Trade and Customs
The market may be open on paper, but the ability to use that access is uneven. Businesses with finance, reliable suppliers and strong compliance systems are better placed to move first
via Mint
The policy challenge is to help smaller firms build those capabilities, so the gains do not remain concentrated among companies that already have them
via Mint