As the U.S.-China trade war heats up, it is reported that the Indian government plans to follow the example of Vietnam, Malaysia and other countries in providing tax incentives/reductions and related measures to attract Chinese companies to transfer production lines to India, and Target industries such as electronics, consumer products, electric vehicles, footwear, and toys.
India’s Ministry of Commerce and Industry hopes to reduce dependence on imported products, reduce the trade deficit with China, and expand exports and demand, but relevant measures still need to be approved by the Ministry of Finance agree. Other measures include establishing industrial zones in coastal areas of India and providing priority opportunities for local manufacturing government procurement to build India into a manufacturing base and promote Prime Minister Narendra Modi’s “Make in India” policy with the goal of improving manufacturing by 2020. The industrial output value accounts for 25% of the overall economic output value.
According to analysis by the Ministry of Commerce and Industry, the industries that Chinese companies are most likely to invest in India are smartphones and their components, consumer products, electric vehicles and their components , and daily necessities including bedding, kitchen utensils, etc. Currently, 95% of these products are imported from China.
In addition, due to the trade friction between India and the United States, the export of some products has been affected. The Indian government has listed more than 150 products that it hopes to expand exports to China, such as processing Potatoes, polyester fibers, shirts, hydroelectric engines, automobile superchargers, etc.
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