Non-tariff measures and Indian textiles and clothing exports

Abstract

This paper provides some important indicators of non-tariff measures in Indian textiles and clothing exports. The paper identifies major trading partners and HS codes to study the impact of Non Taiff Measures (NTMs) on Indian exports. First, using count measures i.e. frequency and coverage ratios, suggests that more than 60% of export value is affected by the NTMs in USA, EU-25 and Canada at various points in time. Second, it calculates Ad-Valorem Equivalents using price differential methods which are imposed in the SMART model under the partial equilibrium framework to know the trade impact of NTMs. A total trade loss of about billion 2.34 US$ (16.8% of base trade value) is estimated, while the zero tariff gains are roughly billion 1.36 US$ that’s 9.8% of base trade. Also this paper develops the framework for the primary research in the field of Non-Tariff Measures.