India Suddenly Announced A Tax Increase On More Than 300 Kinds Of Imported Goods! Chinese Enterprises Bear The Brunt?

After raising import tax rates on other products, including fiber and clothing, last month, India recently prepared to implement a second tax increase on textiles. In fact, thanks to India's high yield of cotton, India's cotton textile industry has developed rapidly in recent years. According to the statistics of the US Department of Agriculture, India's cotton production reached 6.096 million tons in 2016, becoming the world's largest cotton producer. Why does India start to be "anxious" in the face of the booming domestic industry?

　　 one after another! India announced to double the import tax on more than 300 textiles

According to Indian newspaper Mint last week, India decided to double the import tax rate of more than 300 textiles to 20%. As the world's largest cotton producer, India's domestic textile industry has been hit by the impact of low-cost imports, which is expected to ease its pressure and try to curb the growth of China's textile imports. The newspaper said that by March 2018, India's textile imports had soared by 16% to a record $7 billion, of which about $3 billion came from China.

　　 Federation of Indian Textile Industries It is estimated that India's textile imports in 2018-2019 may decline to US $6 billion due to the increase of the tax rate to 20%. In fact, based on sufficient labor resources and textile raw material , as well as India's policy support and other advantages, India's textile industry plays an extremely important role in the country's national economy. The 2016-2017 annual report of India's textile industry shows that the textile industry contributes 2% of India's GDP, 10% of the total output value of the manufacturing industry, and 13% of foreign exchange earnings from exports.

　　 Chinese enterprises suffer from the impact, and India's life is not very easy

To make Domestic textile industry No longer impacted by imported low-cost products, India now chooses to protect itself by doubling the "toll". Some professionals said that Chinese enterprises, especially those that rely on exporting to India, will bear the brunt and become victims of India's import tax measures. According to ITC data, China imports textiles from India clothing The first source country, China's textile and clothing exports to India in 2016 totaled 4.09 billion US dollars, accounting for 67.3% of India's total textile and clothing imports.

However, India's move will also make its own enterprises suffer "backbiting". Krasny Projects Private Limited said that India is still unable to make up for the decrease in imports with domestic products. "The high cost of raw materials, production costs, conflicts among staff, inefficient management and backward technology will not benefit Indian producers from high import taxes". In this way, Indian consumers will pay more for the lack of Chinese products, or reduce their purchase and influence India Domestic industry Development of.

Originally for protection Domestic industry It is unexpected that India will lose more than it gains in the end of its development. Instead of trying to prevent the entry of other products, it is better to spend time and energy on the development of its own industry, perhaps this can achieve India's own goal of "catching up with China".