International Business
Image Credit: ANI
Image Credit: ANI

India, Most Difficult Market For IT Companies To Import, Sell, Says US Trade Study

Team Republic |

A recent study reveals that India tops the list as the most difficult market for information technology (IT) companies to import and sell their products when it comes to product safety regulations. The study was conducted by the  Information Technology Industry Council (ITI), a Washington, D.C.-based trade association.

The ITI represents companies from the information and communications technology (ICT) industry that works to influence policy issues. The report names the EU as a top performer, with the United States ranked somewhere in the middle.

The report scores countries based on criteria drawn from the World Trade Organisation's Agreement on Technical Barriers to Trade, which governs the process by which countries enact technical regulations relating to IT equipment and other products.

The study says:

  • - Within the group of countries that have product safety requirements for a broad range of IT equipment, the median score for ease of doing business was 22 out of a perfect score of 30
  • - India ranked last with a total score of 7 due to onerous requirements from its Compulsory Registration Order
  • - Based on its Low Voltage Directive regulatory model for product safety, the EU received one of the highest scores of 28.
  • - Most countries with broad requirements, including the United States, Canada, Mexico, Russia, South Korea, and China, were ranked between 20 and 24 out of 30, with Argentina at 17 and South Africa at 15

The report further mentions India as creating major obstacles to doing business in this rapidly growing market. Giving it an overall score of 7, the study says that since its implementation in 2012, India's Compulsory Registration Order (CRO) has created major obstacles to doing business in this rapidly growing market.

"The Indian safety standard referenced by the CRO is based on the internationally accepted equivalent standard to which IT products are already tested. Despite this, manufacturers must still submit products from each factory for testing and registration by government approved labs located in India, rather than accepting international test reports from respected labs located in other parts of the world," the report says.

The report further says that India, unfortunately, has not taken a risk-based approach to regulating product safety, as evidenced by the inclusion of professional products such as servers and storage equipment in the CRO.

"As a result, manufacturers are struggling to comply and they have repeatedly asked the Indian regulatory authority to align its conformity assessment requirements with international norms, to exempt or reduce the burden on low-risk products, and to focus on improving the safety of products that pose the greatest risk to the Indian public," the reports says.

(With inputs from ANI)