US urges India to drop non-tariff barriers: An explainer

New Delhi: The US has on multiple times raised concerns over certain non-tariff barriers being faced by American goods in the Indian markets.

On April 22 in , JD Vance urged India to drop non-tariff barriers, give greater access to its markets. Indian products too face these issues in the international markets including in America, EU, China, Japan, and Korea.

A list of Q&As (questions and answers) to explain these and related issues:

Q. What are non-tariff barriers (NTBs) in the international trade parlance?

A. Non-tariff barriers are trade restrictions that do not involve tariffs (taxes or duties on imports or exports). These barriers impact the seamless movement of goods across global boundaries. It is essential to differentiate between non-tariff measures (NTMs) and NTBs.

Most NTMs are domestic rules created by countries with the aim to protect human, animal or plant health and the environment. NTM may be “Technical” measures like regulations, standards, testing, certification, pre-shipment inspection or “Non-Technical” measures like quotas, import licensing, subsidies, government procurement restrictions, etc. When NTMs become arbitrary, beyond scientific justification, they create hurdles for trade and are called NTBs.

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Q: How NTBs affect exporters or importers?

A: These hurdles increase costs for traders. They may have to spend more to comply with destination country requirements such as mandatory certification, testing, or labelling. For example, an Indian agro product exporter might have to pay for EU-mandated laboratory tests for pesticide residues. Exporters sometimes need to redesign their products to meet technical standards or packaging rules in different countries.

It also causes delays in the arrival of consignments and heightens uncertainties. Complicated procedures to do paperwork, licensing rules, or inspections at borders can slow down shipments. For example, exporters to some African countries face long port delays due to strict verification checks.

Q: What kind of NTBs Indian exporters face?

A: Many of India’s food and agriculture products face problems due to higher pesticide levels, presence of pests and contamination due to foot and mouth disease. These lead to rejection of export consignments and compulsory Inspections before shipment.

Q: What are the major categories of these barriers?

A: Complex and expensive prior registration: Under this, companies intending to export have to first register with destination country authorities. Registration, in most cases requires physical submission of documents and payment of exorbitant fee. For example, to ship industrial products to China, a firm needs to register its product with the specified Chinese authority. This requires submitting a large number of documents, including details about the firm and its products.

Unreasonable domestic standards/rules: If a country makes stringent standards and quality rules for foreign goods, it affects trade. For example, getting approval for exporting medicines to Japan is complex. Indian medicines must conform to Japanese pharmacopeia and registration takes a long time.

Q: What are the major NTBs flagged by the US?

A: According to the 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers of the US, India maintains various forms of non-tariff barriers such as banned or prohibited items that are denied entry into India (e.g., tallow, fat, and oils of animal origin); items that require a non-automatic import license (e.g., certain livestock products, pharmaceuticals, certain chemicals, certain IT products); and items that are importable only by government trading monopolies and are subject to cabinet approval regarding import timing and quantity (e.g., corn under a tariff-rate quota).

The report also stated that India imposes Technical Barriers to Trade (TBT) such as mandatory quality control orders, and compulsory domestic testing and certification requirements for equipment.

For example, India imposes onerous requirements on dairy imports. India requires that dairy products intended for food be derived from animals that have not consumed feeds containing internal organs, blood meal, or tissues of ruminant or porcine origin and that exporting countries certify to these conditions, which lack a discernable animal health or human health justification.

Q: What barriers has the US raised in the services sectors in India?

A: According to the NTE, foreign investment in businesses in certain major services sectors, including financial services and retail, is subject to limitations on foreign equity, and foreign participation in professional services is significantly restricted.

In addition, barriers to digital trade and electronic commerce, such as those imposed on electronic payment providers, have secondary effects on a wide variety of services.

Q: What steps is India taking to help its exporters deal with NTBs?

A: The government raised these issues during bilateral meetings with respective nations. The department of commerce is developing a platform for registering non-tariff barriers faced by exporters and taking up with the concerned countries for their resolution.

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