To the US demand of cutting of levies on certain products, India replied with a refusal. Showing its concerns towards declining macro economic conditions resulting in currency devaluation and rising current account deficit, stressing for a low-income nation, India have intimated its inability to remove levies on information and communication technology (ICT) equipments being imported from the United States.
To escalate the trade of certain ICT products, Indian government for removal of custom duties upon these products has been demanded by the US government.
According to Indian Express, India refused calling “disproportionate and unbearable stress” to US demands for duties removal on seven products.
US will not be benefitted by duties elimination upon high-end mobile phones above Rs10,000/- price and smartwatches and upon certain other telecom network products and equipments, as Indian government conveyed to United States. But revenue losses from considering cutting the levies off will make it hard for the India. From the total imports of $20.44 billion by the India for financial year 2017-2018, share of imports upon these seven products from United States remained $415.26 million. Remainders of imports of India for the period comprised of $905.51 million from Vietnam, $847.73 million from South Korea and China on top with $15.03 billion.
Last month Indian government, on several major telecom network devices, has not only lifted up the basic customs toll but also imposed fresh taxes on printed circuit boards (PCBs) assemblies, to cater the effects of currency devaluation and rising current account deficit. A 10 percent duty is currently imposed on PCB assemblies whereas that is 20 percent for the other products also including VoIP phones, IP radios, MIMO/4G LTE devices, optical transport equipment and base stations.
Earlier this month at WTO, other countries including Japan, China, Norway and Canada also raised their concerns upon imposition of custom duties on ICT products by India.