The situation may worsen due to the increase in the world on the trade front in the world. Experts have warned that the rapid trade war between the US, Canada, Mexico and China will increase the risk of foreign goods in Indian markets.
US President Donald Trump has imposed a 25 percent fee on goods and services coming from Canada and Mexico. Trump has also stained 10 percent duty on imported goods from China. These fees will be effective from Tuesday. India’s eyes are stunned by Trump’s steps. Trump has been saying that India is involved in those countries which charge a lot of charges but till now they have not taken any action against it. Ajay Sahai, Director General and Chief Executive of Federation of Indian Export Organization, said that the cost of products will increase there by imposing the US duty on imported goods from China. Sahai said, “Indian products can get more preference than Chinese goods due to low charges.”
However, there is a fear in the minds of exporters over the future charges. During the last one month, the officials of the Department of Commerce are busy studying opportunities and challenges. These officials are trying to understand that if America charges a fee, then they will be applicable to all countries or some countries will come under them. Officials are also evaluating what will be the effect on various areas in the event of fees and how it can be dealt with. In the case of trade war between the US and China, India can increase the export of electronic products, medicines, textiles, vehicles and chemicals to America. Professor Vishwajit Dhar, in the Council for Social Development, said that it remains to be seen whether India is successful in availing the benefit of levying other countries. He said that India should be prepared to take advantage of any such opportunity in future.
Dhar said, ‘We should be ready for a big upheaval in the world, especially in business. Trump has already said that he will impose fees on goods coming from countries that charge more on American goods. India should also be cautious about this threat of Trump.