{"id":80725,"date":"2026-01-03T09:54:57","date_gmt":"2026-01-03T04:24:57","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=80725"},"modified":"2026-01-03T11:14:12","modified_gmt":"2026-01-03T05:44:12","slug":"export-bottlenecks-states-flag-testing-and-logistics-gaps","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/export-bottlenecks-states-flag-testing-and-logistics-gaps\/","title":{"rendered":"Export Bottlenecks: States Flag Testing and Logistics Gaps"},"content":{"rendered":"<h2><b>Export Bottlenecks in India Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beyond high US tariffs, India\u2019s goods exports are being hit by <\/span><b>costlier<\/b><span style=\"font-weight: 400;\"> raw materials, a <\/span><b>shortage <\/b><span style=\"font-weight: 400;\">of testing facilities to meet global quality standards, and <\/span><b>inadequate availability<\/b><span style=\"font-weight: 400;\"> of shipping containers, the Union Commerce and Industry Ministry said in response to an RTI application.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These concerns were raised by exporters at a <\/span><b>Board of Trade<\/b><span style=\"font-weight: 400;\"> meeting chaired by Commerce and Industry Minister Piyush Goyal on November 25, 2025.<\/span><\/li>\n<\/ul>\n<h2><b>Board of Trade(BoT)<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Board of Trade (BoT) is an advisory body under the Ministry of Commerce &amp; Industry, chaired by the Commerce Minister.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It serves as a key forum for shaping India\u2019s Foreign Trade Policy (FTP) by bringing together the Centre, States, industry, and trade bodies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Board of Trade acts as a bridge between policy and practice, ensuring that trade policies reflect ground realities and support export growth across regions and sectors.<\/span><\/li>\n<\/ul>\n<h2><b>Composition of the BoT<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chair: Minister for Commerce &amp; Industry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Members: Government officials, trade experts, and representatives from:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Export Promotion Councils<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Chambers of Commerce and Industry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Financial and trade institutions such as SBI, ECGC, and EXIM Bank<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Backdrop: US Tariffs and Stalled Trade Talks<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The BoT meeting took place amid slowing exports, driven by steep US tariffs of 50% and the failure of India and the United States to conclude a trade deal by fall 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India had been among the first countries to initiate trade talks after PM Modi visited Washington in February 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The tariffs, which came into effect on August 27, 2025, led to order cancellations, delayed payments, and fears of export diversion to competitors such as Bangladesh, Vietnam, and China.<\/span><\/li>\n<\/ul>\n<h3><b>Export Trends and Sectoral Impact<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exports declined in October but rose 19% in November, driven by products outside the tariff net.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Labour-intensive sectors such as garments and footwear face the risk of losing market share as shipments are increasingly replaced by competitors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rajasthan<\/b><span style=\"font-weight: 400;\"> reported that US tariffs led to order cancellations in the gems and jewellery sector, along with delayed payments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Spices Board<\/b><span style=\"font-weight: 400;\">: Flagged a crisis due to a 50% US duty on oleoresin, a key input for flavour and aroma in food products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pharmaceuticals:<\/b><span style=\"font-weight: 400;\"> Despite generic drugs being excluded, Goa highlighted that pharma exports were still affected by tariffs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Seafood:<\/b><span style=\"font-weight: 400;\"> The Seafood Exporters Association reported a significant drop in exports to the US.<\/span><\/li>\n<\/ul>\n<h3><b>India\u2019s Strategy<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To offset pressure from the US market, New Delhi is actively pursuing new markets.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2025, India signed three free trade agreements with Oman, New Zealand, and the United Kingdom, signalling a push towards export diversification.<\/span><\/li>\n<\/ul>\n<h2><b>Anti-Dumping and Countervailing Duties<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beyond tariffs, exporters raised concerns over anti-dumping duties:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Gujarat expressed apprehension over export losses due to US anti-dumping actions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Spices Board highlighted issues arising from anti-dumping and Countervailing Duties (CVDs).<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Although the United States has initiated most anti-dumping investigations against China, it has launched nine probes against Indian industrial exports since July last year, including:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Hexamine<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Oleoresin paprika<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Oleoresins help manufacturers achieve flavour and aroma in their final products.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Certain freight rail couplers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Overhead door counterbalance torsion springs<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Other Major Bottleneck<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Assam<\/b><span style=\"font-weight: 400;\"> flagged hurdles in tea exports due to shipping line<\/span><b> levies <\/b><span style=\"font-weight: 400;\">on empty containers, given the state\u2019s landlocked geography.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gujarat<\/b><span style=\"font-weight: 400;\"> also highlighted a <\/span><b>shortage of shipping containers<\/b><span style=\"font-weight: 400;\">, affecting exporters across sectors.<\/span><\/li>\n<\/ul>\n<h3><b>Lack of Testing Facilities<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rajasthan noted that export samples are sent to Surat and other states due to the <\/span><b>absence of local testing labs<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Uttarakhand reported no testing labs, forcing exporters to rely on facilities in Uttar Pradesh.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Labour-intensive sectors stressed that inadequate testing capacity leads to <\/span><b>delays and higher costs<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is need for more labs accredited by the Marine Products Export Development Authority and National Accreditation Board for Testing and Calibration Laboratories.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This is due to insufficient capacity with the Export Inspection Council.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Access to Inputs and High Cost Pressures<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MSME representatives stated that domestic raw material prices are 15\u201320% higher than international levels.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Textile exporters highlighted energy costs for spinning and manufacturing being 15\u201320% higher, seeking compensation or relief.<\/span><\/li>\n<\/ul>\n<h3><b>Regulatory and Compliance Burdens<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exporters pointed out that <\/span><span style=\"font-weight: 400;\">Bureau of Indian Standards (BIS) norms are being applied even for exports to the US and EU<\/span><span style=\"font-weight: 400;\">, despite differing standards\u2014raising <\/span><b>compliance complexity and costs<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MSMEs flagged difficulties with Quality Control Orders (QCOs), seeking a more facilitatory inspection approach.<\/span><\/li>\n<\/ul>\n<h3><b>Sector-Specific Issues<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Gem and Jewellery Export Promotion Council (GJEPC) raised concerns over restrictions on gold, platinum, and silver, seeking an automatic import route where duty benefits are unavailable; restrictions have made component imports costlier.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ceramics industry representatives noted that District Export Committees are not meeting regularly and need better monitoring.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/business\/exports-hurt-states-flag-facility-and-testing-gaps-at-board-of-trade-meeting-10452544\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.ndtvprofit.com\/economy-finance\/states-flag-testing-gaps-logistics-costs-at-board-of-trade-meeting\" target=\"_blank\" rel=\"nofollow noopener\">NDTVP<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>States and exporters warn that testing facility shortages, container gaps, and high costs\u2014along with US tariffs\u2014are eroding India\u2019s export competitiveness.<\/p>\n","protected":false},"author":18,"featured_media":80735,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[4527,60,22,59],"class_list":{"0":"post-80725","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-export-bottlenecks-in-india","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/80725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=80725"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/80725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/80735"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=80725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=80725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=80725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}