New Delhi, Rajiv Kumar. The task of ending the domination of Chinese goods on the domestic market has begun. Especially in sectors that have all the possibilities of manufacturing domestically. It started with furniture. The duty on furniture import has been increased by 15 percent. These range from wooden furniture to other types of furniture. In addition, the duty on import of furniture parts has also been increased by 15 percent. This is expected to reduce furniture imports from China.
China has a major share in India’s furniture imports
India’s annual furniture import is $ 184.5 million. Of this, China has a share of $ 105.10 million. The world market for furniture is worth $ 250 billion. India accounts for just $ 1.7 billion in the global furniture business. That is why Commerce and Industry Minister Piyush Goyal is repeatedly reiterating the need to encourage furniture trade in India. He says that if there is a furniture business worth 3-4 lakh crore annually in India, then jobs will also be available for thousands of people.
America imposed 25 percent duty on China’s furniture
Foreign trade experts said that on the commencement of trade war with China, the US had imposed 25 per cent duty on Chinese furniture, resulting in a 20 per cent decrease in furniture exported from China to the US. The US can be a major market for Indian furniture as furniture in China has already become expensive due to rising labor costs. The US imports $ 72 billion worth of furniture every year. Europe imports $ 100 billion worth of furniture annually.
Business environment against China is also being prepared in Europe
Due to China’s suspected role in the origin of the corona virus, a business environment is being created against China in Europe, which can benefit India. However, there could be a tough competition in furniture exports to India from countries like Vietnam. According to furniture experts, in India, furniture related raw materials are 60 percent more expensive than China. For example, one piece foam of international standard costs Rs 748 with GST in India, while the same quality phone in China costs Rs 455.
Preparation for imposition of duty on import of handicrafts items According to the Directorate General of Foreign Trade, Ministry of Commerce and Industry, the increase in import duty of four items related to handicrafts is being seriously considered. These mainly include candles, ceramic articles and glass articles. The Handicrafts Export Promotion Council had demanded an increase in import duty on items coming from China.