Sell Chinese goods again! India wants to charge more for 300 kinds of products, and has sold 12 time
Sell Chinese goods again! India wants to charge more for 300 kinds of products, and has sold 12 times this year!
The world bank believes that India's economy will shrink by 3.2% in the fiscal year 2020-2021. It is the lowest level in eight years, and its rating outlook has also been lowered. In order to improve the economy, India still needs to sell Chinese goods?
On June 18, the Tariff Commission of the State Council announced that since July 1, 2020, 97% of Bangladesh's tax products will enjoy the treatment of "zero charge" when they are exported to China. According to Indian media, two Indian officials said on June 18 that India plans to set higher trade barriers on about 300 products from China and other regions, and raise import tariffs to protect Indian domestic enterprises.
India has tried its best to improve its economy. It contacted with the enterprises in Huamei in April, and wanted to attract more than 1000 enterprises in Huamei, and even set aside places for these enterprises to build factories. Today, India also plans to sell 300 products from China and so on to protect its domestic enterprises.
On June 18, the Ministry of Commerce and industry of India announced that it is recommended to charge an additional fee of 5 years for measuring tapes originated or imported from China, as well as a temporary fee for another black toner product from China, with an extra charge of US $834 per ton, China trade relief information network reported.
In fact, India's plan has been under review since April, the report said. India is considering increasing import tariffs on 160 to 200 products and imposing non-tariff barriers on another 100, the source said. It is expected that the new tariff structure will be worked out in the next three months.
It's worth noting that this is not the first time India has increased its charges on Chinese goods this year. Since this year, India has also charged additional fees for products such as carbon black for rubber, fluororubber, PVC decorative film, copper and copper alloy rolling materials, ciprofloxacin hydrochloride, natural mica pearlescent industrial pigment, aniline, electronic calculator, sodium citrate, nylon filament yarn, etc., which are originated or imported from China. In addition, at the end of April this year, India also revised new regulations on FDI to tighten investment in neighboring countries. This unreasonable new regulation has deterred many Chinese investors who are full of hope to go to India. Roughly speaking, India has sold Chinese goods 12 times this year.
India's rating outlook downgraded
Fitch international is one of the three largest credit rating agencies in the world. Recently, Fitch international adjusted its investment level in India. Due to the impact of the "pandemic", India's weak economic growth prospects, heavy public debt burden, and geographical risks, Fitch lowered India's rating outlook from "stable" to "negative", and rated India's long-term foreign currency issuers as "BBB", which is the lowest level of investment.
Affected by the "pandemic", India's economy grew by only 3.2% in the first quarter of this year, the lowest level in eight years. Although there are signs that India's economy is gradually recovering, the outlook is not optimistic. Goldman Sachs forecasts that India's GDP will shrink 45% month on month in the second quarter, far more than it had previously predicted by 20%.
Fitch international forecasts that India's economic activity will shrink by 5% in the fiscal year to March next year (fy2021), which means that India will face the first economic contraction in more than 40 years. Fitch international also forecasts that India's debt will jump to 84.5% of GDP in fy2021, an increase of nearly 13.5% compared with the previous fiscal year.