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Building Access for “Waste-Water Management” Companies
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Eliminating Trade Barriers:
Coming FTA talks are at an opportune time for India and Europe
to work towards eliminating trade barriers that are unfavourable
to free trade between the two partners. There is a growing intent
on either side to reduce / eliminate tariff and non-tariff barriers,
enabling greater trade. We have identified and closely analysed
the key trade barriers that continue to thwart open trade between
India and Europe. Mutual trade will greatly benefit if these
bottlenecks are eliminated or significantly reduced.
Trade Barriers to be
eliminated by Government:
Tariff:
‣ High Import Duties
‣ Inter State Tax
Disparity
Non Tariff:
‣ Unclear Legal /
Regulatory
Environment
‣ Red Tapism
Following are the key tariff barriers that require attention:
Import Duties: India and EU should completely
eliminate duties on at least 90% of tariff lines with the
remaining 10% to be negotiated or completely excluded. This
high rate makes EU products uncompetitive in India. Special
provisions should be offered to Clean Technology sector with
import subsidies for all technologies.
Inter State Tax Disparity: Indian political set-up needs to
regulate inter-state taxation. Government needs to simplify and
rationalise the inter-state tax structure, GST has been
proposed that will greatly help eliminate this problem and
enable uniform pricing across all Indian states
Non Tariff-Barriers that need to be addressed:
Weak or Unclear Legal / Regulatory Environment: India
needs to enforce stringent rules and ensure timely
implementation for environmental policies and judicial
redressal. IPR related issues should be resolved proactively to
protect the interests of domestic and foreign investors and
encourage import of advanced technology solutions. Various
EU wastewater products have been copied in India and fraud
cases are still awaiting justice.
Red-Tape: Government needs to have a central body to deal
with market entry procedures and requirements for a smooth /
speedy process. There is need to welcome FDI by eliminating
unnecessary paperwork and expediting timely decision making.
Part of the shift to a more sustainable waste management
mechanism, the public sector is expected to be proactive in
creating a welcoming environment for EU waste management
companies. To find solutions, we will need to draw on a cocktail of
existing and new policy approaches, a more transparent approach
and stringent legislative machinery. This will encourage EU
companies to successfully enter and conduct business in India.
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