Business
Export Crisis: America Took A Decision To Rein In China; But India’s Problems Have Also Increased, Understand The Whole Matter
India's exports – Photo: i-stock
expansion Follow Us
A decision taken by the US government regarding China has become a cause of trouble for India at the moment. This has increased the possibility of the country's export volume being affected. Actually, the US has increased the tariff on the import of Chinese products. China is trying to send as many products as possible to the US markets before the deadline for its implementation expires. For this reason, it is collecting as many containers as possible. Due to this, there is a shortage of containers in India. According to experts associated with the ship business, if the situation remains the same, then its effect can be seen on India's exports in the coming days. Because, businessmen are not able to get containers to send their goods abroad.
The volume of goods exported by China to the US has increased in recent days. This has also led to an increase in the demand for containers in China. Many empty containers are being sent to China. The Biden administration had announced its decision to impose high tariffs on many Chinese goods - ranging from steel to solar cells, lithium-ion batteries and their parts, electric vehicles and medical products. This decision was to be implemented in phases from this year to 2026.
America's high tariff on Chinese products has been in effect since August. This is the reason why Chinese exporters want to send their goods to America as soon as possible. Empty containers are being sent to China so that they can be loaded and sent to America as soon as possible. Meanwhile, the European Union and Canada have also increased tariffs on Chinese exports. This has worsened the situation, the demand for containers in China is constantly increasing. On the other hand, due to the crisis in the Red Sea, the route to India is getting longer for ships. They have to wait for a long time at Indian ports. Due to this, many shipping companies are avoiding coming to India.
In a report, Times of India quoted Ajay Sahai, director general of FIEO, as saying that shipping lines are avoiding coming to our ports as they have to travel a long distance. However, government officials believe that the worst is over and container supply is expected to improve in the coming months. A government official said that amid weak global demand, India's trade data for August and September is expected to decline as exporters are looking for containers to export their goods.