Impact of non-tariff measures on India’s exports to ASEAN

Purpose This study aims to assess the impact of non-tariff measures (NTMs) imposed by the Association of South East Nations (ASEAN) on India’s exports and examine whether India’s free trade agreements (FTAs) with the ASEAN have played any role in reducing any trade-impeding impact of NTMs. Design/methodology/approach An augmented gravity model has been used. Poisson pseudo maximum likelihood regression and random effect generalized least squares model with time, sector and importer specific effects have been used along with clustered standard errors. Findings Sanitary and phytosanitary measures, technical barriers to trade, quality control measures, measures affecting competition and trade-investment measures have positively impacted India’s exports to ASEAN. Finance measures negatively impact India’s exports. Pre-shipment inspection measures and price control measures negatively impact India’s exports at HS2-digit and positively impact ASEAN’s imports from India at HS6-digit. Export-related measures positively impact India’s exports at HS2-digit and negatively impact the mirror data at HS6-digit. India’s FTAs with ASEAN countries have helped in reducing the trade-impeding impact of NTMs. Originality/value Studies assessing the impact of NTMs on India’s trade have concentrated largely on establishing only the imposition of NTMs. Those studies that have quantified the impact of NTMs on India’s trade have focused only on select sectors. Thus, this paper is novel in assessing the impact of NTMs on India’s overall exports to ASEAN and examining the role of FTAs in reducing any trade-impeding impact of NTMs for India.