Impact of Non-Tariff Reduction on India-ASEAN Trade: A Partial Equilibrium Analysis

Non-tariff measures (NTMs) play a crucial role in shaping international trade, often acting as hidden barriers that influence market access, trade costs, and competitiveness. This study examines the impact of reducing NTMs on trade flows between India and ASEAN member states using a partial equilibrium analysis. By leveraging sector-specific trade data and assessing the effects of reducing NTMs, the study evaluates changes in trade volume, consumer welfare, and market access for Indian exports. The analysis highlights key sectors where NTMs pose significant challenges and assesses the potential trade gains from regulatory harmonization and mutual recognition agreements. Findings indicate that reducing NTMs can lead to substantial trade expansion, particularly in sectors such as pharmaceuticals, processed food, and textiles, which face stringent sanitary and technical regulations. The study provides policy insights for enhancing India-ASEAN trade relations by addressing non-tariff barriers through targeted trade facilitation measures.