India improves score in ease of cross-border trade

Source – Live Mint

Synopsis – India has improved its ease of cross border trade ranking, the overall score is higher than many OECD nations and the average of the EU.

Introduction 

• India has made significant progress in the ease of cross-border trade as per the latest UN Global Survey on Digital and Sustainable Trade Facilitation, which studied 143 different economies over a period of two years,
• As per UN Survey, India’s rank moved up from 78.49% in 2019 to 90.32% in 2021. India was among the best-performing country in the South and South-West Asia region and in the Asia Pacific region.
  • In South Asia, Bangladesh and Sri Lanka were far behind India with a score of 64.5% and 60.2%.

The key parameter in the UN survey

The survey tracks 58 measures identified with trade facilitation which are seen as the global best practices, For example-

• Electronic submission of declarations
• Electronic payment of duties and fees
• Electronic application for refunds

What steps were taken by India to improve cross border trade?

• Faster clearance at customs such as
  • Electronic submission of custom declaration
  • Electronic issuance of import and export permits.
  • Facilitate processing of shipments without direct interaction with merchants.
• Paperwork to be done within a specified time frame
• Constant checking of smuggling and tax evasion
• Facilitate trade in times of emergencies

Way forward

The improvement in cross-border trade facilitation is a promising indicator of post-pandemic economic recovery.

• The findings are particularly encouraging for policymakers who are attempting to increase the country’s appeal as a business destination

This will also help India to grab a greater share in the global supply chain of goods and services

Terms to know:

• OECD