Eye on China, India looks to increase barriers on imports from Asia
NEW DELHI: New Delhi is considering measures to prevent trade partners mainly in Southeast Asia from re-routing Chinese goods to India with little added value, two go nment sources said, amid strained ties with Beijing and a push for self-reliance.
India is planning to raise quality standards of imports, impose quantity restrictions, mandate stringent disclosure norms and initiate more frequent checks at ports of entry for goods coming from many Asian countries, the officials said, declining to be named as they were not authorised to talk to the media.
The moves will mainly target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among other items, the officials said.
Last week, India's trade ministry issued a notice to restrict inbound shipments of TVs by requiring importers to get a special licence.
The moves are expected to primarily hurt Malaysia, Thailand, Vietnam and Singapore - members of the Association of Southeast Asian Nations (ASEAN) with which India has a free trade agreement (FTA). India is also worried about heavy trade flows from South Korea.
"Raising duties has a limited impact," said one of the officials. "Now we want to raise quality standards and also make sure that goods in FTA routes have roots in those countries. So customs would be more vigilant than before."
India's trade ministry did not immediately reply to an email seeking comment.
The go nment will also discuss raising the value-addition requirement for products imported from those countries from the current level of 20%-40%, the official said, adding FTAs could be reviewed too.
"A lot of the Asian partners have become a place from where just Chinese goods are routed. We are going product by product to design various kinds of action, most of which will be on non-tariff lines," the official added.
China is also India's second-biggest trading partner, with trade worth $87 billion in the fiscal year ending March 2019, and a trade deficit of $53.57 billion in China's favour, the widest India has with any country.
Thai and Malaysian authorities said they had not received any official communication on the issues of raising non-tariff barriers or re-routing of goods.
Meanwhile, Indian officials said the go nment was inclined to only stick to those FTAs that it deems mutually beneficial. India has a trade deficit with most of the countries it has signed FTAs with.
A R Raju
india should learn from US. ACT FAST, INDIA IS LOOSING MONEY.
Vaithianathan R M
Many ASEAN economies are controlled by Chinese settled diaspora businessmen. They import cheap raw materials from China, then re-assemble, fabricate or manufacture the final product, then export it to India, ultimately to the benefit of China companies. GoI better re-negotiate all FTAs with ASEAN countries.
TSR The Urbanist
High time India develops stringent Indian standards and mandates BIS Standards for all products being manufactured or imported. We need to set a benchmark across the World by 2025 atleast
Cut all imports. Buy local.
Be indian buy indian!
Jaisimha D R
MEA has to renegotiate FTA's with ASEAN countries & explain that FTA's are for products manufactured in the countries exporting.
However, we have FTAs and cordial relations with ASEAN countries and it will neither advisable nor possible to ban imports from these countries. Under rules of origin, we can restrict indirect imports containing substantial Chinese inputs coming from these countries.
Hem Chandra Pant
Modi has done excellent work. All Chinese imports to be banned and India should also stop all exports to China
no imports, no good products.
no export, no economy growth.
Even if MS takes over Tik Tok, ban should not be lifted as we need to not buckle under US pressure and stand alone on our policy matters.
Corrupt Manmohan Government did Free Trade deal with China to get under the table money to Gandhi family trusts.
China was far behind till 1980.Who has failed us? 73 long years passed since Independence and we have still have 34 per cent of population living below poverty. What is absent is true patriotism.
With China we have negative trade balance. What Modi does is right thing.
While steps to balance our trade with ASEAN countries is desirable under FTAs, it should be ensured that it is in WTO complianet.
All Videsis, Want to sell in India, Come make in India. Invest Billions. Invest with local partners. Pay local taxes. Support local jobs. Cheers
Lets cut imports from all videsi countries.Buy local
Indians are not born entrepreneurs. we love to serve others. its the by product of 1400 years of sl very.
Need to do from very first time
This is moronic and damaging to the transition planned for a self reliant economy. Instead of tariffs and customs red tape which affects even normal business adversely , incentives and. Plans to grow, support and reward home grown innovation are needed. Barriers are counter productive
We must review ftas in case we have a negative trade balance with such countries