India has asked Indonesia to consider removing Non-Tariff Barriers (NTBs) on the import of Indian pharma products into Indonesia.

During the bilateral meeting between Shri Kamal Nath, Union Minister of Commerce and Industry, and the Indonesian Trade Minister Ms. Mari Elka Pangestu, observed that such a step would be beneficial for Indonesia to take benefit of India’s cost effective drugs and source pharmaceutical products from India.

He further stated that the Indian pharmaceutical products are exported to many countries including highly regulated markets of US, Europe, Japan and Australia. Both sides discussed the issues regarding non-tariff barriers on carbon black, wheat flour, uncoated writing and printing paper and milk products and ascertained the concerns of each other to remove barriers to free flow of trade in these goods.

Shri Kamal Nath underlined the potential of small and medium enterprises (SMEs) in both the countries and stressed the need to explore the opportunities in the markets of the other. The Commerce Minister stated that there is lot of scope for widening the trade basket particularly in the services sector and highlighted the strengths of financial and banking sector.

The bilateral trade between India and Indonesia in 2006-07 was US$ 6.20 billion, which was a massive jump of 41.22% over the previous year. In this, the share of India’s exports to Indonesia was 2.03 billion US $ whereas Indonesia’s exports to India were 4.17 billion US $ with the balance of trade in favour of Indonesia. Bilateral trade has shown impressive growth over the last 5 years with Indian exports growing at a Compounded Annual Growth Rate (CAGR) of 30.6% and Indian imports growing at 32%.