India's Path to Cutting Trade Costs with Paperless Systems

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.