The Indian Government plans to introduce measures to prevent trade partners mainly in Southeast Asia from re-routing Chinese goods to India with little added value. The government also plans to raise its current quality standards of imports, impose quantity restrictions, mandate stringent disclosure norms and initiate more frequent checks at ports of entry for goods coming from many Asian countries.
The government aims to mainly target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among other items, the officials said. Last week, India's trade ministry issued a notice to restrict inbound shipments of TVs by requiring importers to get a special license. The moves are expected to primarily hurt Malaysia, Thailand, Vietnam and Singapore - members of the Association of Southeast Asian Nations (ASEAN) with which India has a free trade agreement (FTA).
The government also plans to raise the value-addition requirement for products imported from these countries from the current level of 20 per cent-40 per cent. Also, it will stick to only those FTAs that it deems mutually beneficial. India has a trade deficit with most of the countries it has signed FTAs with. It finds a number of products being routed through the ASEAN economies into India, particularly in the field of electronics.












