The recent Indo-China border clashes are bringing a new shift in the way two countries carry out their bilateral ties.
One significant move in that direction is the ongoing push for a ban on Chinese products and equipment, and excluding Chinese participation in many Indian projects.
In another recent update on the same lines, India is reportedly considering ‘trade barriers’ on imports from and in other nations.
As the sources say, India is planning to impose higher trade barriers and raise duties on 300 products from China in a move safeguarding local businesses.
The Center has reportedly been considering this idea since April 2020 and is line with the PM’s ‘Made in India’ pitch to make India ‘self-reliant’.
As per undisclosed government sources, the plan is in the final stages of preparation, and the updated duty structures will be outlined over the next three months.
According to the officials, around 160-200 products will be subjected to the rise of import duties, and over 100 products will be considered for strict licensing and non-tariff barriers.
The decision is likely to be effective on around USD 8-10 billion worth low-quality products making Indian products uncompetitive.
“We are not targeting any country, but this is one of the ways to reduce a trade deficit that is lopsided with countries like China,” says an official.
An industry source familiar with the improvements says engineering, electronics, and medical equipment imports are likely to face the new rules.
Earlier in February 2020, the government had raised taxes on the import of toys, furniture, and other products.
India has increased duties on more than 3,600 tariff lines products from different sectors, including textiles and electronics, among others.
“We are pushing for a policy to strengthen Indian manufacturing, keeping in view its strengths and weaknesses,” says another official.
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