India suddenly announced a tax increase on more than 300 kinds of imported goods! Chinese enterprises bear the brunt?

Release time:

2018-08-16

Following last month's increase in import duties on other products, including fiber and clothing, India has recently prepared to implement a second tax increase on textiles.

Following last month's increase in import duties on other products, including fiber and clothing, India has recently prepared to implement a second tax increase on textiles. In fact, thanks to the high yield of cotton in India, India's cotton textile industry has developed rapidly in recent years. According to statistics from the US Department of Agriculture, India's cotton production reached 6.096 million tons in 2016, making it the world's largest cotton producer. In the face of the booming domestic industry, why does India begin to "worry?

One after another! India announces to double import duty on over 300 textile products

According to the Indian newspaper "Mint" reported last week, India has decided to double the import tax rate on more than 300 kinds of textiles to 20%. As the world's largest cotton producer, India's domestic textile industry has been hit by low-priced imported products. This move is expected to ease its pressure and try to curb the growth of Chinese textile imports. As of March 2018, India's textile imports surged 16 percent to a record $7 billion, with about $3 billion of that coming from China, the paper said.

The Federation of Indian Textile Industry said that due to the increase in the tax rate to 20%, it is expected that India's textile imports in 2018-2019 may drop to $6 billion. In fact, based on sufficient labor resources and textile raw materials, as well as India's policy support and other advantages, the Indian textile industry occupies an extremely important position in the country's national economy. According to the annual report of India's textile industry 2016-2017, the textile industry contributes 2% of India's GDP, 10% of the total output value of manufacturing industry and 13% of export earnings.

Chinese companies have been hit, and India's life is not very easy......

In order to make the domestic textile industry no longer affected by the impact of low-priced imported products, India now chooses to double the "tolls" to protect itself. Some professionals said that Chinese companies, especially those that rely on exports to India, will bear the brunt and become the victims of India's import tax measures. According to ITC data, China is the first source country of India's textile and clothing imports. China's textile and clothing exports to India in 2016 totaled US $4.09 billion billion, accounting for about 67.3 per cent of India's total textile and clothing imports.

However, India's move will also allow its own enterprises to be "counter-attacked". International company Krasny Projects Private Limited that India is still unable to make up for the reduction in imports with domestic products. "The high cost of raw materials, production costs, inter-worker conflicts, inefficient management and backward technology will not allow Indian producers to benefit from high import taxes". In this way, this move will allow Indian consumers to pay more for lack of Chinese products, or reduce purchases, affecting the development of India's domestic industry.

Originally, it was to protect the development of its own industry, but in the end, it still pitted its own enterprises. I am afraid that India will lose more than it gains this time. Instead of trying to prevent the entry of other products, it is better to focus time and energy on the development of its own industry. Perhaps this can achieve India's own goal of "catching up with China.

Operation Analysis and Forecast of Chemical Fiber Industry in the First Half of 2018

Return to List

August 20 PP plastic prices | slightly down

More information