India will now have to look at creating technical barriers to foreign exports because most of the tariff lines are likely to be eliminated within two years. Foreign companies will start looking at the Indian market in a bigger way, which can be detrimental to the domestic industry, a top commerce ministry official said.
Union commerce secretary GK Pillai said that tariff would no more be a barrier in trade.
?Tariffs are all going to be zero in two years time but non- tariff barriers or technical barriers will increase,? Pillai said.
?In India we have to build our own technical barriers to trade in terms of our own especiality. The regulation in trade will wholly be in terms of standard within the next two years? Pillai said.
Pillai, who was attending an EEPC India session, said that many of the foreign car-makers, when they come to India, fail to meet India?s automobile pollution standards because of the different driving cycle here.
In India, a vehicle?s polluting level is measured at driving in variable speeds with a number of braking incidents in the full course of a single drive. In America pollution level for cars is measured while driving steadily at 80km per hour, which is not possible in India.