Amidst standoff with China, India considers customs duty hike on products

New Delhi, June 19: The government is considering hiking customs duty on a number of products, mainly imported from China, amid ongoing border tensions with the neighbouring country, a source said.

Although nothing has been finalised as yet, the focus would be on cutting down import of non-essential items, the source said.

Discussion is on over hiking duties on goods imported mainly from China, the source said.

About 14 per cent of India's total imports are from China. Between April 2019-February 2020, India has imported goods worth USD 62.4 billion, while exports to the neighbouring country stood at USD 15.5 billion.

The main goods imported from China include clocks and watches, musical instruments, toys, sports goods, furniture, mattresses, plastics, electrical machinery, electronic equipment, chemicals, iron and steel items, fertiliser, mineral fuel and metals.

India has time and again raised concerns over widening trade deficit with China, which stood at about USD 47 billion during April-February 2019-20.

The move to raise duty also assumes significance as the government is working on ways to boost local manufacturing and promote Make in India.