Demystifying the role of barriers at and behind borders in India: A Case of Indian Pharmaceutical Products

Abstract

With the significant reduction of tariff barriers to international trade, other forms of barriers, such as barriers at the border and behind borders are considered as the major challenge to the growth of global trade. These barriers are often high in developing countries as compared to developed ones and arise due to divergent regulatory frameworks, inefficient customs procedures, cumbersome exportimport procedures, administrative hassles, hidden taxes, congestion fee and sub-optimal trade infrastructure. Against this backdrop, this Discussion Paper attempts to understand the role of different types of barriers in the importpharmaceuticalproductsin India. It analyses the effect of three main barriers: tariff barriers; non-tariff barriers; and barriers at the border with a particular focus on understanding the role of procedural and regulatory impediments.