Stab Knife Behind! Abruptly Ban The Export Of Masks, And Increase Import Tariffs On China'S Closing Of The Cotton Market.

Recently, Keqiao cloth boss searched three continents, spent nearly million yuan to buy 400 thousand masks, cards can not be shipped back in India!

The export of masks is banned at the critical moment and the market is closed to China.

In recent years, many local start-ups in India have sprung up, but because of their small scale, it is difficult to raise funds in the open market. In this case, China invested nearly $2 billion 500 million (about 17 billion 500 million yuan) to India start-ups in 2018, and the figure has reached nearly 1 billion yuan (about 7 billion yuan) in the first half of 2019. However, after obtaining quite a lot of investment funds from the Chinese market, India has made many unexpected moves in recent times.

After the ban on export masks, India closed the cotton market to China.

According to China cotton net February 3rd, Kotak, the largest exporter of cotton in India, said recently that China's ports and banks were interested in postponing business, and the company decided to stop exporting cotton to the Chinese market.

It is understood that the cotton giant will find other overseas buyers in the international market, such as Bangladesh, Indonesia and Vietnam, to fill the vacant position of Chinese buyers.

As one of the largest importers of cotton in the world, China is also the biggest buyer of cotton in India, and imports more than 200 thousand tons of cotton per year. Specific data show that as of this year, India has shipped 60-70 million bales of cotton (about 170 kg / bag) to China, and 75% of them are in transit. Originally, India exporters also predicted that 300 thousand packages would be shipped by the end of February. However, from the current situation, this export target is probably very difficult to achieve.

In fact, in addition to closing the cotton market to China, India even took measures to restrict exports of medical products in the face of the epidemic. Last Friday (January 31st), the official website of India foreign trade administration issued a circular that India banned the export of personal protective equipment such as masks and protective clothing during the outbreak of pneumonia. However, India officials did not give the reason for the ban.

Charges for 93 kinds of Chinese goods!

India appealed to Chinese capital to join the "100 trillion capital construction plan"

Whether it is to temporarily suspend exports of cotton to China or to ban export masks under key circumstances, India's current economic and trade measures are not surprising.

At the end of 2019, when the 15 economies in the world thought that the 7 years of negotiations could come to a successful conclusion, India decided at the final critical moment to decide the "absent" regional comprehensive economic partnership agreement (RCEP).

People familiar with the matter said that the reason why India decided not to take part was because of fears that commodities such as China and Australia would pour into the market after joining the RCEP and hit India industry. But for this reason, international trade and economic experts point out that India's stragglers are not only a loss to themselves, but also a "unsatisfactory" outcome to RCEP, which will reduce the total economic volume of RCEP by 1/5, and the economic benefits of member states can also be reduced correspondingly from RCEP.

It is worth mentioning that in recent years, India has also set many obstacles to products originating in China on the basis of "protecting local industries". In mid last month, India was exposed to the additional cost of importing solar cells and modules. China is the largest supplier of solar cells and components. According to incomplete statistics, India has already added 93 surcharges to China's commodities at the end of last year.

At the end of last year, India also announced that it would open a "5 year plan" in the field of infrastructure, and invest 100 trillion rupees (about 10 trillion yuan) in the next 5 years to carry out a number of large-scale infrastructure projects. However, India has said that it is difficult for the country to invest in all infrastructural areas only because of its investment. Therefore, it is now striving for investment from China, hoping to attract Chinese capital into investment areas such as infrastructure development, highways, energy and so on. However, under the current various initiatives in India, the two countries' trade and investment risks will also be faced with great pressure.

From men's underwear to the automotive industry, India's economy is on the decline.

Last August, a taxi driver living in Mumbai, India said to his passenger Tucao that his home refrigerator was old and originally planned for a new one. But because of the recent unstable income, he could only make use of it.

Like the taxi drivers, there is also the macroeconomic data of India, which has slowed down for five consecutive quarters, slowing GDP sales for 10 consecutive months, and the unemployment rate has reached a 45 year low.

After a high-profile re-election, Modi handed in his worst report card in six years.

When Alan Greenspan runs a consulting company, if he wants to predict the trend of the economy, he will usually take the sales of men's underwear as an index.

Greenspan, who later acted as the chairman of the Federal Reserve, believes that in times of economic difficulties, men will first stop replacing worn underwear that outsiders can not see, and then cut down other expenses.

If this standard is measured, India is in a severe recession.

"Sales fell by 50%." Tevlin Moses pointed to the New York Times in a few boxes of men's cotton underwear worn on underwear shelves in the southern city of India.

In September -11, it was time for shopkeepers and dealers across the country to order shirts, trousers, dresses and fabrics in Mose's wholesale store. "Now, people are not coming."

A few people walk on the streets of the market in the market, and businesses say these streets should be very busy.

The weakness of clothing sales, such as underwear, has dragged down the textile industry in India. As the second largest industry after agriculture, 45 million Indians live on it.

The sale of men's underwear for nearly half a century was down 4% from Dollar Industries, which is shocking.

"I have never experienced such a depression." Gaurav Gupta, one of the founders of the company, visited the factory and said, "a customer used to buy six clothes, and now he may only buy four pieces." Gaurav Gupta

At present, although the company has not laid off workers, it has cut the working hours and wages of workers by 10%-20%. Gupta said his factory is turning to warm underwear for cold winter production in northern India. He hopes that local festivals will soon bring about better sales.

　　 Factories for clothing accumulation in the DAL Industry Company

And underwear can also directly show that India's economic recession has been seen as a "locomotive" of economic growth in the automotive industry.

In July and August last year, the number of cars and SUV sales in India plummeted by about 30%, the biggest decline in twenty years. New safety and emission standards increase costs, sales continue to slump, and banks are reluctant to grant loans. Carmakers warn they will lay off 1 million people.

Bhargava, chairman of India's biggest carmaker, SUZUKI R.C., said, "all of these happen in a year, and the combined effect of a cyclical recession has turned into a severe depression in the automotive industry." (Bhargava)

Some automakers are now asking the government to cut taxes on new car buyers or to eliminate old cars with old cars and cash in cash schemes.

　　 India's largest comprehensive motor company Tata dropped 32% in August, and its share price shrank by 30%.

Modi administration's desperate drug: "billion billion infrastructure project"

Not long ago, the India government released a worrying economic report. In the 4-6 months of last year, the country's GDP grew by only 5%, falling to its lowest level in nearly 6 years, compared with 8% a year ago.

Moreover, according to data released by the government, the growth rate of eight core industries in India dropped to 2.1% in July last year due to shrinking coal, crude oil and natural gas production. Among them, the manufacturing industry occupying GDP 17% in India last year dropped to the lowest level in 15 months in August.

As early as prime minister Modi's first term in India, he was accused of ignoring the early signs of economic slowdown.

Since winning the re-election in May last year, boosting the economy has become the core issue of the Modi administration. For this reason, he has promulgated a series of measures: reducing taxes on start-ups, reducing the cost of housing and vehicle loans, injections of 700 billion rupees into state-owned banks (69 billion 570 million yuan), relaxing restrictions on foreign investment, opening up huge coal industries to India and adjusting foreign investment. Purchase rules for international retail brands in India...

To support these policies, the Central Bank of India announced at the beginning of the month that it would transfer about $25 billion of excess reserves to the government.

However, the effectiveness of government measures is doubtful. The central bank's bailout does not seem to ease the government's fiscal deficit to boost economic weakness.

"These measures are not enough to stimulate economic growth, which is too little and too late. We do not have any immediate solutions. " After the release of GDP data, Subramanian Swami, a hardline member of the India people's party, Modi, stressed in a tweet that the country needs courage and knowledge to boost the economy, but the cruel reality is "we have neither."

Until last Friday, the India government finally admitted the seriousness of the problem. It unexpectedly announced that it would reduce the income tax of all enterprises by 5 percentage points and implement additional incentives for manufacturers. Just this past weekend, Modi, Prime Minister of India, met Houston with U.S. President Trump, trying to resolve some trade disputes between the United States and India.

In a report earlier last year, CNN said that India's economic downturn was a sign of "turning into a crisis". India's media were more impolite to call this stage "quasi recession".

Macrotech, a large real estate developer who works with us president Trump to build residential buildings in Mumbai, has just fired 400 employees because of the decline in demand for new houses in the Indian area. The company has just fired up the number of new employees in the city of Mike.

Some families in India even started saving 7 cents a pack of paler biscuits. This biscuit is a "standard" for breakfast in India, serving as a staple food with milk and tea, but the recent sale of biscuits has dropped by 8%.

In order to keep the aura of "the fastest growing economy in the world", the Modi administration has offered an ultimate solution -- Investing 100 trillion rupees (10 trillion yuan) in the next 5 years to build infrastructure, trying to save unemployment and consumption, and help push India's economy back to two digit growth.

However, in the past ten years, from 2008 to 2017, India has invested a total of 78 trillion rupees in infrastructure, which has made the five billion plan a bit too ambitious.

What worries India economists more is the structural economic ills of the country. It is widely believed that there is no immediate solution to the recession in India.

The head of the India government think tank and the national transformation Commission even said that the degree of economic slowdown was unprecedented in India's 70 years of independence. The last five quarters of India's GDP slowed down to 1992. Reuters analysts expect the current slowdown to last two to three years.

When the ambitious Moody's with his own "global power" at the UN General Assembly in New York was greatly impassioned, thousands of miles away, his country's livelihood and economic prospects were still mixed.

Extended reading;

India substantially increases import tariffs

India government finance minister Nimara Siharaman (Nirmala Sitharaman) announced in its 2020-21 year government budget that the import tariffs of furniture, footwear, household appliances, mobile phone parts and toys and other products should be increased, and further revised the Section 28DA on anti dumping sales and related measures to restrict imports.

Products that specifically raise import tariffs include:

* footwear tariffs increased from 25% to 35%;

* toy duty increased from 20% to 60%;

* the tax rate on furniture such as seats, lamps and mattresses will be raised from 20% to 25%.

* tariffs on fixed items such as fans, Food Grinders, blenders, razors, water heaters, toasters, toasters, coffee machines, heaters and irons, as well as filing cabinets and paper plates increased from 10% to 20%;

* tariffs on commercial refrigerators increased from 7.5% to 15%;

* tariffs on refrigerators and air conditioners increased from 10% to 12.5%;

* tariffs on railway transport fans increased from 7.5% to 10%;

* tariffs on welding and plasma cutting machines increased from 7.5% to 10%;

* in terms of electric vehicles, tariffs on imported fully built electric buses and electric trucks increased from 25% to 40%. The tariffs on semi manufactured goods from buses, trucks and two wheeled vehicles increased from 15% to 25%, and the tariffs on passenger cars and tricycles increased from 15% to 30%. The import packages of all electric vehicles (parts and components imported to India for further assembly) increased tariffs from 10% to 15%.

* the duty of walnut will be increased from 30% to 100%.

Tariff adjustment document screenshot

　　 The India government said the new tax accords with the "India manufacturing" plan of prime minister Narendra Modi aimed at promoting domestic industrial development.

In addition, the government budget of India added 1 new chapters in the tariff law in 2020. The establishment of FTA origin inspection will be more strictly regulated. The India government has further revised the relevant provisions of the Section 28DA on anti-dumping and defense measures to restrict imports. At present, the number of anti-dumping investigations by India is only second of that of the United States, ranking the world's largest.