Government considering increasing customs duty on many products from China


As a part of its latest move to restrict import from China, the Government is now considering increasing customs duty on many products which includes, laptops, cameras, textiles, and Aluminium goods while placing some steel items under the import licensing. Now the issue is before the finance ministry which has earlier spurned the proposal from the ministry of commerce and industry.

By notifying some tariff hikes a senior officer said that the revenue department is expected to move ahead. Another officer explained that it is not a specific China duty action, but it is an overall increase in the customs duty, even though the idea is to focus on products which are coming in large volume from China.

Recently as the government has noticed the diversion of imports from the countries with which India has free trade agreements especially  Asian members such as Vietnam and Thailand. The government has been wary of duty hikes. By a few decades, the perceived inaction by the revenue department has prompted the commerce department to impose the curves such as the import licensing of the tires and the TV sets which many in the government believe is turning the clock back.

The Directorate General of Foreign Trade which is a licensing agency the steel products are being considered for the import restrictions. Above all such import restrictions, the Prime Minister Narendra Modi’s administration has also banned about over 59  Chinese apps while shifting the foreign direct investment (FDI) from the China-based entities to the approval route instead of the earlier system which only required company’s to inform the  Reserve Bank of India (RBI) post investments. A new registration system has been created for the Chinese suppliers and the contractors who wish to participate in government contracts. These moves are mean to signal India’s this pleasure at the recent intrusion in the Ladakh which resulted in the death of over 20 armies personal.

An officer said that even if it means higher cost we cant do business with them by offering incentives to mobile manufacturers and pharma companies producing bulk drugs, with a few more sectors the government is working to promote the domestic manufacturing. India has a massive trade with China which was estimated $ 48.7 billion in  2019-20 which is the lowest in the five years, while the government has also accused China of not responding to its request to allow more exports from India, resulting in a higher deficit.


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