Manufacturing
The decision to postpone the reciperochl tariff by the US for 90 days has brought an important strategic opportunity for India. This is especially time to intensify efforts to attract electronic manufacturing companies that want to diversify their production bases outside China. The US has decided to impose a huge tariff of 125 per cent on China. US President Donald Trump shocked everyone on Wednesday night banned the tariffs imposed on most countries for 90 days. While the rate of tariff on sugar imports increased to 125 percent. However, 10 per cent tariffs applied from April 5 will still remain on everyone. The US imposed an additional 26 per cent import duty on India.
India should take advantage of the opportunity
Pankaj Mohindru, chairman of the India Cellular and Electronics Association (Icea), emphasized the urgency of this situation. He said that other countries, especially Vietnam, is ready to take advantage of the ban on this tariff and hence India should also move faster and decisively. Mohindru said, “This period opens an important strategic gate to expedite efforts to attract investment in electronic manufacturing for India. Especially from companies that want to diversify their production bases beyond China. ICEA is committed to expedite transfer of this production to India.”
Do not be late …
He warned that if we delayed taking advantage of this “favorable period”, we can miss a golden opportunity, as companies can choose alternate destinations that provide more benefits. According to the ICEA, the 90 -day ban on the reciperochl tariff by the US administration is a welcome step. He urged to adopt an action oriented approach, saying, “We appreciate the Government of India for not taking any hurry, but instead adopted a balanced approach that reflects the strategic understanding of the opportunities presented. However, we also see that the basic duty of 10 percent on imports from most countries including India is still effective.”
Great opportunity for trade deal also
Ashok Chandak, chairman of the India Electronics and Semiconductor Association (IESA), believes that temporary relief businesses on tariffs and India provide an opportunity to stabilize the supply chains and optimize operations. Also, it also gives policy makers an opportunity to work towards more sustainable trade agreements.
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