Indian exporters urged the commerce ministry to establish a separate division focused on addressing non-tariff barriers (NTBs) imposed by other countries, which they say are hampering outbound shipments.

The request came during a meeting with commerce minister Piyush Goyal. Ajay Sahai, director-general of the Federation of Indian Export Organisations (FIEO), emphasised the need for a dedicated NTB division “to have a focused approach” in addressing these challenges.

NTBs encompass a broad spectrum of regulations and practices, including technical measures such as product standards and testing requirements, and non-technical measures such as quotas and import licensing.

Exporters also requested an extension and increased rates for the government’s interest equalisation scheme, which subsidises export credit.

Discussions focused on various hurdles faced by exporters, including limited container availability in hinterlands, some shipping lines bypassing Indian ports, product standard issues, port delays, and the need for free trade agreements (FTAs) to secure wider market access.

Interest equalisation

The government on Friday extended the interest equalisation scheme on pre- and post-shipment rupee export credit for two months to promote the country’s outbound shipments. The scheme which provides exporters interest benefits was ending on June 30 this year.

However, apex exporters’ body Federation of Indian Export Organisations (FIEO) expressed disappointment over the move as the extension was applicable only for MSME exporters.