In order to encourage local products, the Indian government is weighing new measures to prevent trade partners in Southeast Asia from re-routing Chinese imports to India with a low added value, as Reuters learnt from inside sources.
New Delhi intends to heighten quality standards of imports, slam quantity restriction and mount stringent disclosure norms, according to the local officials
Source: AAStocks
In a report titled ‘A Glass Half Full: The Promise of Regional Trade in South Asia’, the bank estimates India’s potential trade in goods with South Asia at $62 billion against its actual trade of $19 billion, which is a mere 3% of its global trade and about $43 billion below its potential.
Source: Economics Times
This might not be so good for South East Asia if India starts to implement any forms of restrictions or tariffs. Looking at the current trade numbers, it is likely not to grow too much if anything is implemented and with the COVID-19 situation still not in control globally, it may not help with the economic growth in the region. Also this is specifically targeting Chinese import which might be due to the border tensions as well.
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