India Expands Duty-Free Items to Sri Lanka

4 February 2015

India plans to reduce the number of sensitive items subject to import duty under the South Asia Free Trade Agreement (SAFTA) for Pakistan and Sri Lanka. It has already decreased the number of sensitive list items for least developed countries (LDCs) of the South Asian Association for Regional Cooperation (SAARC) region. According to A.M. Gondane, Joint Secretary, SAARC, this will have Customs revenue implications for both countries. 

In previous years, India has steered the trade liberalization process under SAFTA to accelerate the process of economic integration. A step in this direction is the reduction of its sensitive list for LDCs. Sensitive lists include products with significant Customs tariff imposed by countries to protect domestic industries that supply similar products. 

SAFTA facilitates intra-regional trade by reducing tariff and non-tariff barriers. SAARC Leaders, SAFTA Ministerial Council and Meetings of SAARC Finance Ministers have urged further reductions of products actively traded or have the potential of being traded under SAFTA. 

Sri Lanka’s Department of Commerce reports bilateral trade between India and Sri Lanka at US$3.63 billion in 2013. Balance of trade favors India with exports from Sri Lanka at $543.3 million and total imports from India at US$3.09 billion. 

 

Related Links: 

India to expand list of duty free items to Sri Lanka under SAFTA
Revised Sensitive Lists under SAFTA (Phase-II)
8th SAFTA Ministerial Council Focuses on Regional Economic Cooperation

Research on the impact of cross-border energy trade in Bhutan noted that the country’s electricity exports in 2020...

Read More


The Governments of Bangladesh and India are preparing to conduct comprehensive trial runs for the transshipment of cargo...

Read More


The potential of the Siliguri corridor and its surroundings to be developed as a logistics hub for India’s...

Read More


Bhutan’s Minister for Economic Affairs Loknath Sharma was in New Delhi, India, on 18–21 July 2022. He met...

Read More


The three industrial corridors of Andhra Pradesh, the Chennai - Bengaluru Industrial Corridor (CBIC), Visakhapatnam - Chennai Industrial...

Read More


The Governments of Bhutan and Nepal are expediting the process to sign the bilateral trade agreement. At the...

Read More


Nepal now sells a total of 364 megawatts (MW) of electricity to India through the...

Read More