Introduction

Indian exports face growing challenges due to non-tariff measures (NTMs) imposed by developed economies. These NTMs, including carbon taxes, deforestation declarations, and industrial policies, restrict market access and create additional compliance burdens. To counter these hurdles, India is implementing strategic initiatives to strengthen its export sector.

Key Challenges for Indian Exports

Challenge	Description
Non-Tariff Measures (NTMs)	EU carbon tax, deforestation-related declarations, and industrial policies like the USA’s Inflation Reduction Act and UK’s advanced manufacturing plan.
Limited Integration with Global Value Chains	India faces structural challenges in embedding itself into global supply networks.
High Import Duties	Tariffs increase costs for Indian manufacturers, affecting competitiveness.
Technology Disadvantages	Lagging behind advanced nations in innovation and digital adoption.
High Logistics Costs	Logistics costs account for 8-9% of GDP compared to 5-6% in developed economies.

Export Credit Deficiencies

Metric	Current Value (2023-24)	Required Value
Export Credit as % of Total Exports	28.5%	Higher required share
Total Export Credit ($ Billion)	124.7	284
Projected Export Credit Gap by 2030 ($ Billion)	–	525

A significant gap in export credit availability limits India’s ability to scale up exports and meet international demand efficiently.

Government Initiatives to Support Exporters

Initiative	Objective
MSME Export Support Schemes	Provide credit at easier terms and promote alternative financing instruments.
BharatTradeNet	A unified platform for trade documentation and financing solutions to ease exporter burden.
Export Promotion Mission (2025-26)	Announced in the Union Budget to streamline policies and address NTMs.
Export Credit Guarantee Corporation (ECGC)	Currently covers $44.9 billion out of $124.7 billion in total export credit, with plans to expand coverage.
Collaboration Across Ministries	Commerce, MSME, and finance ministries work together to mitigate NTM impacts.
Technical and Compliance Support	Assistance in meeting health, safety, and environmental standards of importing nations.
Capacity Building & Awareness Programs	Training exporters to comply with NTMs and improve competitiveness.

Conclusion

India is proactively addressing NTMs and export limitations by enhancing credit availability, supporting MSMEs, launching BharatTradeNet, and streamlining compliance processes. These measures are crucial in positioning India as a strong global trade player amidst evolving international regulations.