India urges Indonesia to reduce import quota restrictions on auto sector

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India has asked Indonesia to reduce import quota restrictions on the auto sector, and has reiterated its demand for greater market access to agriculture exports.

During a meeting with Indonesian trade minister Enggartiasto Lukita, Commerce and Industry Minister Piyush Goyal on Tuesday flagged the import quota restrictions faced by Indian auto and auto component makers on completely built-up units (CBU) and tyres, in Indonesia.


“The restricted import quota prescribed by Indonesia for Indian vehicles in CBU condition has adversely impacted exports. Long lead time taken for regulatory certification for new vehicles also affects launch of new products. Indonesia adopts standards for emission that is not commensurate with global emission norms for fuel efficiency in automobiles. Further, others have better market access advantage over Indian automakers due to bilateral FTA arrangements,” the Commerce Department said.


With bilateral trade of $21.13 billion in FY19, Indonesia is India’s second-largest trade partner in the Asean region after Singapore. However, India’s trade deficit stands at a sizeable $10.57 billion.


Goyal requested the Indonesian side to allow Indian-origin Frozen Halal Buffalo Meat (FHBM) for free — a major import for the Muslim-majority nation — directly to importers/distributors through various important ports, without quotas and restrictions.


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