As the Indian economy recovered from the global recession with the Index of Industrial Production (IIP) growth rates just 2% below the highs of last year, it sought to impose extensive import tariffs on Chinese toys and other goods. According to the reports of the Indian government, imports from China rose by 55% to $27bn (€19.3bn, £16.4bn) in the financial year to April 2008 and again in the year just ended but particularly took over the toy industry with a majority of the $2.5bn market this year. India and China have been disputing with each other for many months with China threatening to take the case to the World Trade Organisation (WTO).

It is not the import of toys alone, but that of other items including steel, which India wants to limit. Imports of Hot rolled coils (HRC) have surged 300%. According to India’s Director of Foreign Trade, no anti dumping cases have yet been imposed yet. But with many overseas markets applying import tariffs on Indian steel it will probably not be long before Indian domestic steel industry starts imposing tariffs.

Moreover, in March, India imposed 35% duty rates on Chinese aluminum sheets and 22% on aluminum foils, mostly at the request of domestic producer Hindalco, which already enjoys 55% of the domestic foil market and 70% of the flat rolled market according to the business website, domain-b.com.

Even though, lawmakers across the financially slumping trading world have done well in resisting the imposition of import tariff, India appears to be an exception among them.

Source: iitrade.ac.in