The government on Friday said it would consider reducing duties on luxury goods imports without affecting the domestic market.
“If the industry comes up with some items on which duties can be brought down without hurting the local industry, we will be happy to look at it,” commerce and industry minister Kamal Nath said. Defending the high tariff on imports of goods like leather and textile products, the minister said it was to ensure that cheap imports from countries like China does not flood the local market.
He also said that the duty on high value goods can be brought down on the lines of a model which would be adopted in the case of wines and spirits. Nath said, “We recognise that duties on wines is high. We are looking at lowering tariffs. We are in the advanced of negotiations and the issue will be addressed.”
This sentence is so revealing, is it not? "If the industry comes up with some items on which duties can be brought down..."
Flooding the local market is another. Please do have a look at Bastiat quote in this earlier post
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