India asks for formulation on luxury goods import

New Delhi, Mar 30 (UNI) India today asked the European Union for a formulation to address the high tariff rates on the import of luxury goods in the country.

''We are looking which path does not cause injury to our local industry...Is there a formulation by which we can address this issue. It is for you (EU) to come with that (formulation) where cheap goods do not come in taking advantage of the lower tariffs,'' Union Minister for Commerce and Industry Kamal Nath said here.

Since India and China have common tariffs, the EU needs to ensure India that a branded apparal such as a shirt should be differentiated from a shirt made in China, he said at a luxury goods conference also attended by France Minister for Foreign Trade Christine Lagarde.

''We are trying to do that for wines, the higher the wines the less are the duties... We do have higher tariffs on luxury goods such as leather and textiles but we do not want China to do to us what it did to you,'' the Commerce Minister said.

Adding that French companies, strictly the luxury industry, were interested not just in exports but in partnerships with their Indian counterparts, Ms Lagarde said reducing the high tariffs on luxury products would not hurt the industry but rather enrich it.

''This does not damage the Indian industry but support and propel it. We need to look at partnering between the Indian and French luxury industries, and in that respect we need to look at openess, lowering of barriers and welcoming of FDI,'' she said.

UNI