Nikkei Asia (February 25) stated that at the beginning of February, India raised import duties on roughly 30 products in a move that seeks to rebalance trade with China and develop local industry. The levies on solar lamps and cells are now between 15 and 20% from the previous 5%. Cellphone charging devices, which were tariff-free, were slapped with a 10% levy. The affected products span the electronics, automotive, chemicals, leather and agricultural sectors. The intent is to minimize the imports of these goods from China and other countries and to encourage local manufacturing activity. India imported about $480 billion worth of goods in 2019, with China being the largest trading partner at 14%. But the pandemic disrupted imports of finished products and components, which contributed to India's economic stagnation. To foster a local supply chain, India has turned to higher tariffs. Printed circuit boards and cameras for cellphones saw duties raised to 2.5% from zero. Duties on compressors for refrigerators and air conditioners have been hiked to 15% from 12.5%. For automobiles, ignition and signalling equipment will have levies raised to 15% from between 7.5 and 10%.
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