New Delhi: The West Asia crisis has prompted the government to look at ways to step up exports to South Asia. The commerce and industry ministry is reviewing issues related to tariff, non-tariff, logistics, regulatory and quality certification hampering business with Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives and Afghanistan so as to iron out any challenges, said an official.
India's goods exports to these six countries increased 4.5% year-on-year to $25.5 billion in FY25. "We are reviewing the export performance in this region and have asked industry for the challenges they face," said an official, who did not wish to be identified. The exercise comes at a time when India's exports to West Asia are expected to decline in the wake of the US-Israel war on Iran. Goods exports to the region fell 0.81% year-on-year to $36.61 billion in February and challenges are likely to continue in March.
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Payments issues and specific trade promotion and other support needed to increase exports to the six South Asian nations are likely to be taken up at a review meeting planned between the ministry and industry later this week, according to people familiar with the matter.
Bangladesh is India's top export destination in South Asia, with outbound shipments of $11.48 billion last year, followed by Nepal ($7.38 billion) and Sri Lanka ($4.55 billion).
"There are challenges related to payments with Nepal while with Bangladesh, there are port restrictions that hinder trade," an industry representative said on condition of anonymity.
India doesn't allow imports of certain jute products such as fabrics, twine, ropes and bags from Bangladesh through land routes except Nhava Sheva Seaport in Maharashtra. The move is aimed at quality control or protection of domestic industry. Banned products include bleached and unbleached woven fabrics of jute or of other textile bast fibre; twine, cordage, rope of jute; and sacks and bags of jute. Imports of these products from Bangladesh will not be allowed from any land port along the India-Bangladesh border.
India's goods exports to these six countries increased 4.5% year-on-year to $25.5 billion in FY25. "We are reviewing the export performance in this region and have asked industry for the challenges they face," said an official, who did not wish to be identified. The exercise comes at a time when India's exports to West Asia are expected to decline in the wake of the US-Israel war on Iran. Goods exports to the region fell 0.81% year-on-year to $36.61 billion in February and challenges are likely to continue in March.
Also Read | Inside Iran’s Shahed drones: Cheap weapons with deadly tech edge
Payments issues and specific trade promotion and other support needed to increase exports to the six South Asian nations are likely to be taken up at a review meeting planned between the ministry and industry later this week, according to people familiar with the matter.
Bangladesh is India's top export destination in South Asia, with outbound shipments of $11.48 billion last year, followed by Nepal ($7.38 billion) and Sri Lanka ($4.55 billion).
"There are challenges related to payments with Nepal while with Bangladesh, there are port restrictions that hinder trade," an industry representative said on condition of anonymity.
India doesn't allow imports of certain jute products such as fabrics, twine, ropes and bags from Bangladesh through land routes except Nhava Sheva Seaport in Maharashtra. The move is aimed at quality control or protection of domestic industry. Banned products include bleached and unbleached woven fabrics of jute or of other textile bast fibre; twine, cordage, rope of jute; and sacks and bags of jute. Imports of these products from Bangladesh will not be allowed from any land port along the India-Bangladesh border.
