Delhi: US President Donald Trump’s 90 -day tariff suspension has been relieved, but his trade war with China has raised new problems for India. China is trying to sell more and more goods in other markets including India. For this, he has all kinds of policies including temptation. The government is cautious.
Preparation to stop cheap sugar imports
Concerned over the floods of cheap Chinese goods, Indian policy makers are now identifying such markets and products that can be protected through minimum import price, security duty or other measures. The need to take drastic steps in this direction has increased by the US to increase import duty by 125% with immediate effect on goods imported from China. A few hours ago, China announced a tariff of up to 84% on products coming from the US. Now the US market is closing for Chinese products. Has really dumped and this has damaged the domestic industry? Whether it is so, it will be detected through investigation. China is also facing challenges in India: Chinese suppliers are facing challenges in the Indian market due to production-related incentives, compulsory quality control certification from the Bureau of Indian Standards and increasing import duty on components. As a result, India aims to increase its component and sub-assembly production by $ 145–155 billion by 2030.
5% discount on electronics goods
Concerned over the ongoing tariff war with the US, Chinese electronic component manufacturers have offered a price cut of up to 5% to Indian companies, as Indian companies are now starting dialogue for new supply contracts. This is a significant discount, as this industry works on extremely low margin of 4-7%. This can help refrigerators, TV and smartphone makers to save up to 2-3%. Indian companies can increase demand by transporting some part of this savings to customers as discounts. About three-fourths of components used in electronic products in India are imported from China.
Electronics market eye
1) Imports of electronic devices have increased by 36.7%.
2) In 2024 it will be $ 34.4 billion.
3) This is 118.2% higher than in 2019.
In 2024, the United States imported electrical and electronic equipment worth $ 127.06 billion from China. Dependence on imports: chips, compressors, inner tube cells, TV panels, printed circuit boards, battery cells. From the display camera module to flexible printed circuits, 75% of the components of smartphones used in India are imported from China.
What are the solutions?
• In some cases a tariff may be imposed to prevent China, but not in all cases.
• The Directorate of Trading Treatment can take cognizance of the complaint of dumping by taking initiative itself and starts an investigation.
• There is a discussion that India should not wait until the industry is damaged. • The government is now identifying products on which minimum import price can be imposed.
• Anti-dumping duty is levied to a specific country, while the security duty applies to all importers.
• Between April and January 2024-25, goods worth $ 95 billion were imported from China.
The post carefully! Dragon started the new trick, China first appeared on News India Live in an attempt to sell more and more goods in other markets including India | Breaking India News, The Indian Headline, India Express News, Fast India News.
