New Delhi
Trade war between the US and China, the world’s two largest economy, is constantly deepening. The US has imposed 245% tax on Chinese goods. In such a situation, it is no longer a profitable deal for American companies to make goods in China and they are preparing to cover their boria beds in China. The Government of India is watching it as a big opportunity. The government wants these companies to come to India and do their business. This will benefit India in sectors such as electronics, toys and medicines. According to a report in the Economic Times, the government also wants to help Indian companies grow business in America. Recently, the government held a meeting with the people of the industry. This meeting talked about ways to increase business in America.
The report quoted sources as saying that a trade agreement between India and the United States is expected. Negotiations about this are going to start soon. First video will be talked through video conferencing and then a face-to-face meeting is likely to be held from mid-May. The Indian electronics industry is seeing a big opportunity in this. The United States has imposed more tax on electronics goods coming from China. But India and the goods coming from more than 75 countries have not been taxed. However, US President Donald Trump has said that he will soon impose new tax on electronics goods. A smartphone like iPhone made in China is taxed in America. At the same time, there is no tax on goods made in India.
Whom is the biggest challenge
Industry experts say that the government will have to make careful plans so that the business war between the US-China can be made maximum benefit. He says that if the plan is not properly planned, Vietnam can take the most advantage of this opportunity. Vietnam is the largest exporter of Samsung’s smartphone and gadgets to America. He has a stronger electronics supply chain than India. Vietnam has more trade with America. Also, most Chinese companies have invested there. Therefore, there can be opportunities for India as well.
The electronics sector in the country is growing rapidly due to the production-linked incentive (PLI) scheme. The Ministry of Electronics and IT has three PLI schemes. These schemes are for smartphones, laptops and servers such as IT hardware and electronics parts. Right now, the Department for Promotion of Industry and Internal Trade (DPIT) is talking about this. Soon other ministries will also join it. A expert in the industry said that the government has identified 10-12 sectors. These include electronics, medicine, chemical, automobiles, toys, air conditioners and appliances. India can benefit in these sectors.
Industry problem
Another source said that the government has made it clear that joint venture and technology transfer agreement will be given more importance as such a system needs to be created in India. The industry has been told that the government wants to make India a hub of manufacturing. Also, she wants to gain more share in the world’s business. The industry has told about tax, custom and other problems. He says that these problems may cause trouble in achieving the target.