India is set to raise trade barriers on imports from Asian countries. This was aimed to prevent India’s trading partners, especially in Southeast Asia, from rerouting or relabelling Chinese products to India with little added value, Reuters reported citing two government sources familiar with the matter. The barriers will come in the form of higher quality standards, quantity restrictions, stricter disclosure norms, and more frequent checks at entry points.
According to the sources, the targeted goods include toys, rubber, textiles, base metals, furniture, leather goods, air conditioners, televisions, as well as electronic components for laptops and cellphones among other items. The trade ministry last week issued a notice requiring TV importers to get a special licence.
The sources added that the Indian government might review free trade agreements (FTAs) with some Asian countries and increase the value-addition requirement for products imported from those countries from 20%-40% currently. Higher trade barriers are expected to hurt Southeast Asian economies which have FTAs with India.
A standoff in the Himalayan borders earlier this year has further deteriorated India’s uneasy relationships with China, its second-largest trading partner. India-China trade stood at $88 billion in the fiscal year ended March 2019, with India bearing a trade deficit of $53.5 billion, the widest deficit that India had with any trading partner at that fiscal year.
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Published on August 5, 2020 2:41 PM (GMT+8)Last Updated on August 5, 2020 2:41 PM (GMT+8)
