Again To China'S Products! India Wants To Increase The Cost Of The 300 Products, And Has Made 12 Rounds This Year.

The situation of the spread of the epidemic is grim and India's economy is facing a simultaneous examination. Considering that, the world bank believes that India's economy will shrink by 3.2% in the 2020-2021 fiscal year. The lowest level in 8 years, the rating outlook has also been lowered. In order to improve the economy, India also needs to sell Chinese goods?

In June 18th, the State Council Tariff Commission issued the latest announcement that since July 1, 2020, 97% of the taxable products exported to Bangladesh will enjoy "zero fee" treatment. According to print media, two officials in India said in June 18th that India plans to set up higher trade barriers to about 300 products from China and other regions and increase import tariffs to protect India's domestic enterprises.

In order to improve the economy, India has done its best. In April, it contacted with Chinese and American enterprises. It wanted to attract more than 1000 companies in China and the United States, and even laid a place for them to build factories. Today, India is also planning to launch 300 products from China, such as China, to protect its domestic enterprises.

According to China's trade relief information network, in June 18th, the Ministry of Commerce and industry of India issued a notice. It is proposed that the additional cost of the measuring tape imported or imported from China for a period of 5 years, and a provisional charge for another product black toner from China, will be more than $834 per ton.

Reported that, in fact, from April, India's plan is being examined. According to sources, India is considering increasing import tariffs of 160 to 200 products and implementing non-tariff barriers to 100 other products. The new tariff structure is expected to be worked out in the next three months.

It is worth noting that this is not the first time that India has increased the cost of Chinese goods for the first time this year. Since the beginning of this year, India has also charged the cost of rubber carbon black, fluorine rubber, PVC decorative film, copper and copper alloy rolled materials, ciprofloxacin hydrochloride, natural mica pearlescent industrial pigment, aniline, electronic calculator, sodium citrate, nylon filament yarn and other products imported from China. More than that, at the end of April this year, India also revised the new FDI rules to tighten investment in neighboring countries. This unreasonable new rule has deterred many Chinese investors who are eager to go to India. Roughly calculated, India has made 12 rounds of Chinese goods this year.

India's rating outlook is down

Fitch is one of the three largest credit rating agencies in the world. Recently, it has adjusted the level of investment in India. Due to the "pandemic" impact, weak prospects for India's economic growth, heavy public debt burden and geopolitical risks, Fitch lowered India's rating outlook from "stability" to "negative" and set India's long term foreign currency issuer rating as "BBB -", 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 8 years. Although there are signs of a gradual recovery in India's economy, the outlook is not optimistic. Goldman Sachs predicts that India's GDP will shrink by 45% in the second quarter, which is far more than 20% of its previous forecast.

Fitch forecasts that India's economic activity will shrink by 5% in the current fiscal year (fiscal year 2021) next March, which means India will face its first economic contraction in more than 40 years. In the 2021 fiscal year, India's debt will jump to 84.5% of GDP, up nearly 13.5% from the previous fiscal year.