×
435
Fashion Jobs
BIANCA
Merchandise Planner
Permanent · MUMBAI
THE PHOENIX MILLS LTD.
Assistant Manager - Marketing & Communication
Permanent · BENGALURU
DAKS INDIA
Senior Manager Quality
Permanent · GREATER NOIDA
DAKS INDIA
Ppc Head
Permanent · GREATER NOIDA
DAKS INDIA
Production Manager
Permanent · GREATER NOIDA
JOBZ DADDY
Category Head
Permanent · GURUGRAM
BANNARI AMMAN SPINNING MILLS LTD
Senior Marketing Manager
Permanent · COIMBATORE
LIFESTYLE BRANDS
Area Manager-Projects Execution (Telangana &Amp; Andra Pradesh)-Hyderabad
Permanent · BENGALURU
ACME INTERNATIONAL LTD
Fabric Marketing Manager
Permanent · AHMEDABAD
SANGUINE CONSULTANTS
Senior Executive - Cosmetics Product
Permanent · DELHI
ASCENT HUMAN SOLUTIONS PVT. LTD.
Senior Executive - International Marketing
Permanent · DELHI
SHOPPERS STOP LTD
Zonal Marketing Head
Permanent · BENGALURU
AMAX PLACEMENT SERVICES
Candidate For Sales
Permanent · KANPUR
RELIANCE INDUSTRIES LTD
Territory Sales Manager
Permanent · KOTTAYAM
RELIANCE INDUSTRIES LTD
Territory Sales Manager
Permanent · KOLLAM
RELIANCE INDUSTRIES LTD
Territory Sales Manager
Permanent · KANNUR
RELIANCE INDUSTRIES LTD
Territory Sales Manager
Permanent · KOCHI
RELIANCE INDUSTRIES LTD
Territory Sales Manager
Permanent · PATHANAMTHITTA
RELIANCE INDUSTRIES LTD
Territory Sales Manager
Permanent · THRISSUR
RELIANCE INDUSTRIES LTD
Territory Sales Manager
Permanent · PALAKKAD
V2 RETAIL LTD
Line Supervisors
Permanent · GURUGRAM
V2 RETAIL LTD
Line Supervisors
Permanent · NOIDA

India likely to raise import duties on more than 50 items

By
Reuters API
Published
today Jan 24, 2020
Reading time
access_time 3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

India plans to increase import duties on more than 50 items including electronics, electrical goods, chemicals and handicrafts, targeting about $56 billion (£42 billion) worth of imports from China and elsewhere, officials and industry sources said.




Finance Minister Nirmala Sitharaman could make the announcement when she presents her annual budget for 2020/21 on Feb. 1, along with other stimulus measures to revive sagging economic growth, one of the government officials said.

Higher customs duties are likely to hit goods such as mobile phone chargers, industrial chemicals, lamps, wooden furniture, candles, jewellery and handicraft items, two government sources with direct knowledge of the matter said.

The move could hit smartphone manufacturers that still import chargers or other components such as vibrator motors and ringers, along with retailers such as giant IKEA that is in the process of expanding its footprint in India.

IKEA had previously flagged higher Indian customs duties as a challenge.

The government had identified items and decided to increase import tariffs by 5%-10% as recommended by a panel of trade and finance ministry officials, among others, the second government official said.

"Our aim is to curb imports of non-essential items," said the official, adding a hike in import duties would provide a level playing field for local manufacturers-hit by cheap imports from China, the Association of Southeast Asian Nations (ASEAN), and other countries that enjoy trade pacts with India.

The sources asked not be identified as the discussions were private.

A spokesman for the finance ministry and a spokeswoman for the commerce ministry declined to comment.

Since taking charge in 2014, Prime Minister Narendra Modi has imposed several restrictions on imports while allowing more foreign investment in manufacturing, defence and other sectors.
Modi's ruling Bharatiya Janata Party (BJP) has also asked the government to increase duties on non-essential items to boost local manufacturing.

"We expect the budget will address the issue of ... cheap imports under free trade pacts," Gopal Krishan Agarwal, the head of BJP's Economic Affairs Cell, told Reuters.

A committee of trade ministry officials in consultation with local industries had initially planned to target more than 130 items accounting for roughly $100 billion worth of imports, but it has since pruned the list, the first official said.

IMPORT QUALITY STANDARDS

The government is separately considering imposing "quality standards" on imports as less than 10% of India's tariff lines are regulated for safety, health and environmental standards, an industry official, who is participating in the pre-budget consultations, said.

Ahead of the budget, the trade ministry has also asked the finance ministry to consider a Border Adjustment Tax (BAT) on imported goods to level the playing field for domestic players that also have to pay local taxes like electricity duties and levies on fuel, the second government official said.

The official added this could be imposed on top of any tariffs further raising the costs of imported goods.

Last July, the government raised import tax on more than 75 items, including gold and automobile parts, in its post-election budget.

India's goods imports, which had been growing faster than exports in the last several years, fell some 8.90% during the April-December period from year-earlier levels, compared to a roughly 2% decline in exports.

This has helped the Modi administration cut its trade deficit that stood at $118 billion during April-December, down from $148 billion a year earlier.

The United States wants India to buy at least another $5-6 billion worth of American farm goods if New Delhi wants to win reinstatement of a key U.S. trade concession and seal a wider pact, four sources familiar with the talks told Reuters.

U.S. President Donald Trump cited trade barriers last year when removing India from its Generalized System of Preferences programme that allowed zero tariffs on $5.6 billion of exports to the United States. In retaliation, India slapped higher tariffs on more than two dozens U.S. products.

© Thomson Reuters 2020 All rights reserved.