The recent UNESCAP Global Survey on Digital and Sustainable Trade Facilitation has put India in the spotlight with an impressive score of 90.32%, a significant leap from 78.49% in 2019.
Understanding the UNESCAP Survey
Held biennially by the United Nations Economic and Social Commission for Asia Pacific (UNESCAP), the survey assesses 58 trade facilitation measures laid out by the World Trade Organization’s Trade Facilitation Agreement. The measures comprise various aspects such as risk management, advance ruling on tariff classification, pre-arrival processing, expedited shipments, automated customs systems, and more. Among these, publishing existing import-export rules on the internet holds paramount importance.
The performance of a country in this survey essentially helps businesses make informed investment decisions. The UN Regional Commissions collectively conduct this survey covering around 143 economies worldwide, with UNESCAP handling the Asia Pacific sector.
Evaluating India’s Performance
India exhibited commendable improvement across all five key indicators of the survey. The Transparency rating skyrocketed to 100% in 2021 from 93.33% in 2019. Formality scores spiked to 95.83% in 2021, increasing from 87.5% in 2019. Institutional Arrangement and Cooperation rose to 88.89% in 2021 from 66.67% in 2019. Paperless Trade saw a significant growth to 96.3% in 2021 from 81.48% in 2019. Lastly, Cross-Border Paperless Trade scored 66.67% in 2021, improved from 55.56% in 2019.
India’s Global Standing
India’s performance leaves behind the South and South West Asia region at 63.12% and the Asia Pacific region at 65.85%. Furthermore, India’s overall score bests many OECD (Organisation for Economic Cooperation and Development) countries such as France, UK, Canada, Norway, and Finland. It also surpasses the average score of the European Union.
Driving Forces behind India’s Leap
The Central Board of Indirect Taxes and Customs (CBIC) has been a spearhead in reforming under the ‘Turant’ Customs initiative, introducing a Faceless, Paperless, and Contactless Customs protocol through various changes. These reforms were particularly beneficial during the Covid-19 pandemic, helping expedite the import of essential goods like oxygen-related equipment, life-saving medicines, and vaccines.
Insight into UNESCAP
UNESCAP represents the regional development arm of the United Nations for the Asia-Pacific region. Founded in 1947 and headquartered in Bangkok, Thailand, it consists of 53 member states and 9 associate members, including India. UNESCAP aims to combat some of the region’s biggest challenges by providing result-oriented projects, technical assistance, and capacity-building to its member states. The latest report by UNESCAP is titled ‘Economic and Social Survey of Asia and the Pacific 2021: Towards post-Covid-19 resilient economies’.