India Plans To Raise Tariffs On 300 Products, Such As China.

Two India government officials said on Thursday (June 18th) that India plans to set up higher trade barriers and import tariffs on some 300 products from China and other regions, which is part of efforts to protect domestic enterprises.

According to a government document read by Reuters, the plan has been under review since at least April this year. The plan is in line with the recently announced campaign of self-reliance for promoting domestic products by Prime Minister Modi of India.

Those who do not want to be named said that the new tariff structure could be gradually drawn up in the next 3 months, as the plan is still being finalized.

The officials said the government is considering increasing import tariffs on 160-200 products and implementing non-tariff barriers to other 100 products, such as licensing requirements or more stringent quality checks.

The first official, who knew directly about the plan, said the decision would target imports worth 80-100 billion US dollars, with a view to preventing unnecessary imports of low quality products that led to the lack of competitiveness of India's products.

"We are not targeting any country, but this is one way to reduce the trade deficit with China and other countries," the second officials said.

In the fiscal year ending March 2019, bilateral trade between China and India amounted to US $88 billion, and the trade deficit with China was US $53 billion 500 million, the largest source of trade deficit in India.

According to the latest data, India's trade deficit with China from April 2019 to February 2020 was 46 billion 800 million US dollars.

Another industry insider familiar with the matter said that engineering products, electronic products and some medical equipment were included in the project.

Third government sources said that non-tariff barriers, such as more stringent quality control certification, may be applied to imported products such as air conditioners.

Since taking office in 2014, Modi has promised to promote and protect the local manufacturing industry. In recent years, he launched the "India made" program and announced the "India independence" campaign last month.

In February this year, India has increased the import tax rate of commodities such as electronic products, toys and furniture, and criticized it as a protectionist move against foreign enterprises. For example, Sweden's IKEA (IKEA) said at the time it was disappointed with higher tariffs.

A government document shows that ministries and commissions in India have asked for feedback on the list of about 300 products. The document also said that since 2014, India has increased tariffs of more than 3600 items, covering products such as textiles and electronic products.

"We are promoting a policy to strengthen India's manufacturing industry, taking into account its strengths and weaknesses," fourth government officials said.