Hong Kong keen to import electronic components from India
The Dollar Business Bureau
Hong Kong is eager to import consumer electronic components from India and intends to set up assembly plants in India once the deal gets through. This could be a real deal-clincher since Hong Kong is the world’s eighth largest trading economy.
Terming the deal as a win-win one for both the countries, the Hong Kong spokesperson said that its Govt, is looking forward to the signing of the Double Taxation Agreement and the Investment Protection Treaty to finalize it.
On the bilateral trade front, the country sees a growth in exports from India but imports could stay flat.
Speaking to the Indian media, Raymond Yip, Hong Kong Trade Development Council (HKTDC) Deputy Executive Director said, “because we are the largest exporter of telephones, mobiles in world. So, we need parts for finished products and there is a good possibility of import of parts and components from India, to make consumer electronics products.” He also clarified that Hong Kong is more into trading of products and less of consumption by its 7.3 million people. Much of the buying is for the 1.3 billion Chinese people and people of other countries in the world. He emphasized that Hong Kong traders can buy goods worth $1.4 billion per day for the world.
The Chinese govt in Hong Kong has better ideas for its smaller local companies, who he says could be motivated and encouraged to set up assembly plants in India in order to tap its burgeoning middle class domestic market. Hong Kong doesn’t produce its components and prefers to source them from the US, Japan, China, Taiwan, Korea, Malaysia and India could be a part of this group.
Speaking of the high-class quality telecom components that India makes due to the intense R&D, he said of the total $462 billion in exports that Hong Kong spends, half is in electronics. "We could import that from India because you produce some good components because we need components and parts to make products for exports."
On the 'Make In India' initiative, he said: "For us, anything which turns into business opportunities is great and of course, we want to sell more products to India." He pointed to some constraints though in terms of import regulations, and tariff, adding that it is being liberalised.