India's Path to Cutting Trade Costs with Paperless Systems

India can significantly boost export competitiveness by adopting paperless trading systems, as suggested by ICRIER and RIS. The Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific (CPTA) drives this shift. Though India is yet to join, doing so could streamline its trade processes.

India stands to gain a competitive edge in exports and reduce trade costs by adopting paperless trading systems. A joint report by ICRIER and RIS reveals that trade costs for Asia-Pacific economies could drop by 25% with such initiatives.

Momentum is building in the region for cross-border paperless trade, a process relying on electronic communication, with the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific (CPTA) playing a pivotal role. This agreement promises streamlined trade procedures, lower logistics costs, and enhanced regulatory collaboration.

By January 2025, 16 countries will be part of the CPTA; however, India has yet to join, despite domestic reforms like SWIFT and electronic tax document handling. Arpita Mukherjee of ICRIER emphasizes that India's next trade evolution lies in seamless cross-border integration. Joining the CPTA could bolster India's trade integration, aiding exporters and MSMEs by reducing bureaucratic hurdles and customs barriers.