Even as India proposes to sign a comprehensive economic partnership agreement with China, it is wary of Beijing ‘dumping its cheap goods’ in Indian markets. The UPA government is willing to take on board the concerns expressed by Indian toy makers facing flood of Chinese imports.In an interview with Ronojoy Banerjee, minister of state for commerce and industry Jyotiraditya Scindia, outlines India’s plans on Chinese imports, EU demand for slashing duties on its wines and possibility of another incentive package to perk up labour intensive export-manufacturing sectors. Excerpts:
n China enjoys a trade surplus vis-à-vis India. Is there a move to ban Chinese products and re-impose restrictions on its toys for better balance of trade?
We would surely want a much more trade balance in our favour. However, banning Chinese goods is not an option. In proviso, China cannot treat India as a dumping ground for cheap products. We would take matters very seriously if we find that the Chinese are dumping cheap goods.
n Toy makers have pointed to anomaly in duties, 100 per cent import duty on raw material for soft toys as against 16 per cent levied on readymade toys from China?
This is more of a revenue issue, which would be looked into by the finance ministry. However, I would be more than willing to meet the toy makers’ association and understand issues. The government had banned Chinese toys and lifted it only on the condition that they adhere to strict standards. They are bound to follow standards like the ones prescribed in USA (ASTM) and Europe (EN 71). Even India has its own standard ISO 8124, which needs to be followed.
n What is the government doing about drugs manufactured by Indian firms being confiscated by some European countries?
We have taken this matter very seriously. India has voiced its concerns that such seizures of drugs meant for developing markets (in Latin America) are against WTO norms. We cannot ask drug manufacturers to adopt a different route to supply drugs to Latin America. But I am happy that EU has assured us that such incidents won’t be repeated.
n EU has also written to WTO complaining about high excise duties levied on its wines and spirits by some Indian States.
I hope this matter gets resolved soon. The issue is that in India we have a federal structure. But, so far, states have largely agreed. There are only two or three states left. Maharastra has already agreed to slash its levies on European wines.
n Has the government reviewed exports? Which are the sectors you have identified that need additional government assistance?
The review would be done by next week after which we would see the condition of exports and the impact of global financial turmoil. In the foreign trade policy announced in August, we had taken steps to support export sectors, which had helped them to an extent. We will closely assess the conditions of labour intensive sectors like leather and garments after which we will take a decision.
Source : mydigitalfc.com