China’s loss of supply chains may become India’s gain in post-Covid era

The government expects the program for electronics alone could lead to $153 billion worth of manufactured goods over the next five years and create about one million jobs directly and indirectly

India’s latest set of incentives to entice businesses moving away from China seem to be working, with companies from Samsung Electronics Co. to Apple Inc.’s assembly partners showing interest in investing in the South Asian nation.

Prime Minister Narendra Modi’s government in March announced incentives that make niche firms — electronics manufacturers — eligible for a payment of 4 per cent-6 per cent of their incremental sales over the next five years. The result: about two dozen companies pledged $1.5 billion of investments to set up mobile-phone factories in the country.

Besides Samsung, those that have shown interest are Hon Hai Precision Industry Co., known as Foxconn, Wistron Corp. and Pegatron Corp. India has also extended similar incentives to pharmaceutical businesses, and plans to cover more sectors, which may include automobiles, textiles, and food processing under the program.

While companies have been actively looking to diversify supply chains amid the US-China trade tensions and the coronavirus outbreak, it hasn’t yet translated into big gains for India despite the nation making it cheaper for businesses to open shop. Vietnam remains the most favored destination, followed by Cambodia, Myanmar, Bangladesh and Thailand, according to a recent survey by Standard Chartered Plc…Read More

Tariffs, trade barriers: How India plans to protect domestic biz from China

Bilateral trade between China and India was worth $88 billion in the fiscal year ending March 2019, with a trade deficit of $53.5 billion in China’s favour, the widest India has with any country

India plans to impose higher trade barriers and raise import duties on around 300 products from China and elsewhere, two government officials said, as part of an effort to protect domestic businesses. The plan has been under review since at least April, according to a government document seen by Reuters, and is in line with Prime Minister Narendra Modi’s recently announced self-reliance campaign to promote local products. The new duty structures are likely to be gradually outlined over the next three months, said the sources, who asked not to be named as the plan is still being finalised. India’s finance ministry and trade ministry, which is involved in the discussions, did not respond to requests for comment.

ALSO READ: How should India tackle China in Ladakh

The government is considering raising import duties on 160-200 products and imposing non-tariff barriers – such as licensing requirements or stricter quality checks – on another 100, according to the officials. The decision will target imports worth $8-10 billion with the aim of deterring non-essential lower quality imports which render Indian products uncompetitive, said the first official, who has direct knowledge of the plans.

“We are not targeting any country, but this is one of the ways to reduce a trade deficit that is lopsided with countries like China,” the second official said. Bilateral trade between China and India was worth $88 billion in the fiscal year ending March 2019, with a trade deficit of $53.5 billion in China’s favour, the widest India has with any country.

‘China may have provoked’: Pompeo condoles death of Indian soldiers

Pompeo said the Communist Party has used the pandemic they helped worsen as a smokescreen for ratcheting up their oppression of Hong Kong

The United States on Thursday expressed its deepest condolences to India on the loss of lives of its soldiers in violent clashes with Chinese troops at Galwan Valley in Ladakh early this week. We extend our deepest condolences to the people of India for the lives lost as a result of the recent confrontation with China, US Secretary of State Mike Pompeo said in a tweet, hours after his meeting with top Chinese diplomat Yang Jiechi.

We will remember the soldiers’ families, loved ones, and communities as they grieve, said Pompeo. The State Department did not say if the recent India-China confrontation along the Line of Actual Control in East Ladakh appeared during the Pompeo-Yang talks in Hawaii.

A day earlier, the White House had said President Donald Trump is aware of the fierce clashes between the Indian and Chinese troops in eastern Laddakh. Twenty Indian Army personnel, including a Colonel, were killed in the clash with Chinese troops in the Galwan Valley on Monday night, in the biggest military confrontation in over five decades that has significantly escalated the already volatile border standoff between the two countries…Read More