The India-China Free Trade Agreement (FTA) has been making headlines recently, with the latest development being the customs notification issued by the Indian government on April 13, 2021.
The customs notification states that the preferential tariff treatment under the FTA will not apply for 314 tariff lines, which includes items such as auto parts, chemicals, and textiles. This move is aimed at addressing the trade imbalance between India and China, which has been a major concern for the Indian government.
Under the FTA, which was signed in 2008, both countries agreed to reduce tariffs on a range of goods over a period of time. However, India has been unhappy with the trade deficit with China, which stood at $45.8 billion in 2020, and has been looking for ways to address this imbalance.
The customs notification is a significant step towards achieving this goal. It is expected to give a boost to the domestic manufacturing sector, as it will make imports of certain goods from China more expensive. This will also help create jobs in India, which is a key priority for the government.
However, the move has not been well received by Chinese officials. They have raised concerns about the impact of the notification on bilateral trade and have called for dialogue to resolve any issues.
The FTA between India and China is one of the most important trade agreements for both countries. It has the potential to boost economic growth and create jobs, but the trade imbalance between the two countries has been a major hurdle.
The customs notification is a step towards addressing this issue, but more needs to be done to take full advantage of the FTA. Both countries need to work together to address any concerns and find ways to increase trade between them.
In conclusion, the India-China Free Trade Agreement customs notification is a significant development in bilateral trade relations. It is expected to give a boost to domestic manufacturing and create jobs in India. However, it is important for both countries to work together to address any concerns and fully realize the potential of the FTA.