Industry & Economy
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Foreign Trade
`Indo-Thai FTA may hurt domestic cos'
Our Bureau
New Delhi
,
June 7
THERE is an urgent need to address the disabilities suffered by the Indian industry in the context of the Indo-Thai FTA.
These are in terms of high cost of production, higher import duties, infrastructure service cost and huge interest rate differential compared with Thailand, finds a recent survey by the Federation of Indian Chambers of Commerce and Industry (FICCI).
The FICCI survey "India-Thailand FTA - Emerging Issues" of 35 companies whose products have been included in the list of 82 early harvest items of import from Thailand reveals that internal cost disabilities are eroding the competitiveness of the domestic companies vis-à-vis Thai imports.
For example, a comparison of the import duties on certain raw materials in India and Thailand reveal that inputs such as glass parts and chemicals can be imported duty free into Thailand but attract a 15 per cent duty when imported into India.
The Indo-Thai FTA is expected to help Indian companies gain access to the East-Asian countries with whom Thailand has either signed or is likely to sign an FTA and thereby give them an opportunity to be truly global players.
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