{"id":70913,"date":"2020-11-25T18:08:52","date_gmt":"2020-11-25T12:38:52","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=70913"},"modified":"2021-05-10T17:18:36","modified_gmt":"2021-05-10T11:48:36","slug":"india-eu-trade","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-eu-trade\/","title":{"rendered":"India-EU trade"},"content":{"rendered":"<p><span style=\"color: #000000;\"><strong>Context-<\/strong>\u00a0The recently concluded 15th Summit of India and EU, the broad consensus that emerged is to strengthen the <a style=\"color: #000000;\" href=\"https:\/\/forumias.com\/blog\/india-eu-trade\/\" target=\"_blank\" rel=\"noopener\">EU-India<\/a> Strategic Partnership.<\/span><\/p>\n<p><strong>India-EU areas of convergence-<\/strong><\/p>\n<ul>\n<li>India\u2019s largest trading partner, while India is the EU\u2019s ninth biggest trading partner.<\/li>\n<li>India is among the few nations that run a surplus in services trade with the EU.<\/li>\n<li>Both share similar \u2018universal values\u2019 of democracy, pluralism, respect for international institutions and multilateralism.<\/li>\n<li>Share common interest in tackling climate change, and building trade.<\/li>\n<\/ul>\n<p>However,\u00a0India\u2019s exports in the competitive EU market are not doing well such as-<\/p>\n<ul>\n<li><strong>Agriculture Commodities<\/strong>\u2013 Apart from processed rice, the share of India\u2019s agriculture commodities in EU\u2019s import is invariably less than 3 per cent.<\/li>\n<li><strong>Marine products<\/strong>\u00a0\u2013 EU imports more from ASEAN than India despite its longer coastline.<\/li>\n<li><strong>Labour intensive products<\/strong>\u2013 Bangladesh exports more such products like apparels and leather products than India.<\/li>\n<li><strong>pharmaceutical sector-<\/strong>\u00a0EU imports more by-products of same (chemicals, rubber plastic products) from China and ASEAN than India<\/li>\n<\/ul>\n<p><strong>What are the reasons for lower share of Indian export in the EU market?<\/strong><\/p>\n<ol>\n<li><strong>High production\u00a0cost<\/strong>\u00a0in India leading to higher import cost in EU market compared to other countries;<\/li>\n<li><strong>High logistics\u00a0costs and poor connectivity<\/strong>\u00a0that make Indian exports uncompetitive in EU market.<\/li>\n<li><strong>Inefficiency\u00a0in\u00a0trade facilitation<\/strong>\u00a0measures leading to high cost of export or consignments being rejected, which has spill-over effects.<\/li>\n<li>India\u2019s exports\u00a0being subjected to\u00a0<strong>higher para-tariff<\/strong>\u00a0in comparison to other countries.<\/li>\n<li><strong>India\u2019s exports\u00a0not meeting the European standard<\/strong>. Indian products have been rejected\/ banned due to failure to comply with EU standards and this legacy is affecting India\u2019s exports.<\/li>\n<\/ol>\n<p><strong>How India can boost EU trade?<\/strong><\/p>\n<ol>\n<li><strong>Reduction on production cost<\/strong>\u2013 Advance logistics\/trade facilitation measures can keep the production cost low which increases the competitiveness.<\/li>\n<li><strong>Better infrastructure<\/strong>\u2013 This leads to lower logistic cost and faster and direct connectivity of consignment to Europe.<\/li>\n<li><strong>Enhancing connectivity<\/strong>\u2013\u00a0Facilitating people\u2019s mobility and connectivity to improve mutual understanding and create opportunities for innovation and growth.<\/li>\n<li><strong>Following Chinese strategy<\/strong>\u2013 Indian products have been rejected\/banned due to failure to comply with EU standard. On the flip side, China produces goods complying with European standards at higher price than what they produce for African\/Indian market.\u00a0This way, China protects their brand value and manages cost.<\/li>\n<\/ol>\n<p><strong>Way forward-<\/strong><\/p>\n<ul>\n<li>Indian producer needs to pay much more attention to complying with specific EU market standards.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Context-\u00a0The recently concluded 15th Summit of India and EU, the broad consensus that emerged is to strengthen the EU-India Strategic Partnership. India-EU areas of convergence- India\u2019s largest trading partner, while India is the EU\u2019s ninth biggest trading partner. India is among the few nations that run a surplus in services trade with the EU. Both&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-eu-trade\/\">Continue reading <span class=\"screen-reader-text\">India-EU trade<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":72298,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[1474,1333],"class_list":["post-70913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","tag-foreign_policy_india","tag-ir_0","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/11\/India-EU-trade.jpg?fit=1200%2C628&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704875917},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/70913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=70913"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/70913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/72298"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=70913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=70913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=70913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}