Prime Minister Narendra Modi went to Singapore on June 1, where he talked about free trade and economic integration with Prime Minister Li Shien Lung.
Narendra Modi had said, “The solutions to the problem are not found within the boundaries but they are met by hugging, we want equal level for all, India stands in favor of open and stable international trade.”
The United States decided to increase import duty on steel and aluminum. In such a case, India has decided to increase import duty of some products in response to this.
In this notification issued by the Government of India, this decision has been stated as necessary under “immediate action in the current situation”.
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India has increased the import duty on agricultural products like apples, almonds, walnuts, chickpeas to 20 to 90 percent. On the first almond, there was 35 import duty per kg, which has now been increased to 42 rupees per kg.
Imports duty has been increased from 100 to 120 rupees per kg on sprayed almonds. At the same time, apples will now have 75% import duty, which was 50% earlier.
Duty has been increased to the highest rate. It has been increased from 30 percent to 120 percent.
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Impact on India’s market
Now after import duty is increased, these food items will get expensive in India. Due to this decision from the government, the dealers of dry fruits are worried.
They believe that the biggest impact of this decision will be on almonds. India is the largest importer of almonds. Here, 80 percent of the total consumption is imported from the United States.
Kanwarjeet Bajaj has been trading almond for the last 59 years. They say that import duty was not increased at such a large level earlier.
“Almonds are imported from America every year,” he says, “if import duty is increased, then it will lose 50 percent of its market, which will affect America’s farmers and its earnings.”
“The merchants will import almonds from Australia, Spain and Afghanistan, which will get 100 rupees more expensive to the customers of India and prices can be higher in retail outlets.”
But the decision to increase imports duties is considered to be very good. Caith Sundarlal, food market expert in Delhi, says, “US apples are better than domestic apples, if better quality apples do not stay in the market then indigenous farmers will not insist on growing good apples, this will reduce the feeling of competition from foreign apples. ”
What will be the impact on exporters?
Imports increased on the import of US President Donald Trump’s aluminum and steel, has impacted Indian markets. 25% on aluminum and 10% tax on steel was increased.
Preet Pal Singh does business in steel utensils in Kodalini near Haryana. This is their third generation which is doing this business.
They make utensils and send them to the world. They send us hundreds of crores of rupees every year to the United States.
For the first time in 70 years, the demand for their utensils has decreased in the USA. He says, “25 to 30 percent of our total sales were bought by the US alone. This is a big market for us, but now there is a huge reduction in demands.”
They feel that if such a trade policy prevails between the United States and India, then they will have to evacuate people from their factory.
What will be the next step
India has lodged a complaint against the policies of the United States in the World Trade Organization. But so far the dialogue between the two sides has not increased. Hopefully the solution is forthcoming.
India has left the door to negotiate for the United States. It is expected that the difficulties come on the level of economic policies between the two countries.