Hong Kong is the world’s eighth largest trading
economy. At the moment, Hong Kong is looking at India as a good possibility to
import electronic components. There are a large number of electronic component exporters in IndiaNot only does the Hong Kong economy wish to import electronic components from
India but will also encourage local companies to set up assembly plants with an
aim of bolstering economic and business ties.
Hong Kong is looking at this as a win-win situation.
A programme of exchange will be setup so that there is an understanding between
the two countries and there will also be a signing of the double taxation
agreement and investment protection treaty for promotion of trade and
investment.
On the bilateral trade front, Hong Kong expects to
see a rise in the exports to India, but see the imports from India to stay
flat.
Hong Kong will be importing electronic parts and components
from India to make consumer electronic products. Hong Kong is the largest
manufacturer of telephones and mobile phones. With this parts imported from
India, they are looking at manufacturing finished products.
The Hong Kong Trade Development Council (HKTDC)
company said that local companies in Hong Kong can be encouraged to invest in
India by setting up assembly plants to tap the big domestic market due to the
rising income of the middle class.
Though Hong Kong is one of the biggest manufacturers of consumer electronicproducts , it does not manufacture any of its parts. The parts
were being imported earlier from China, the US, Japan, Korea, Taiwan, Malaysia.
And this is where India can fit in now.
The Hong Kong Trade Development Council (HKTDC)
feels that India excels in making good quality telecom components because of
domestic research and large number of MNCs present.
With India exporting electronic components to Hong
Kong, will boost the ‘Make in India’ initiative. To this, the Hong Kong
government said that anything which turns into profit is great and in the
coming years they are looking at selling more products to India. With some of
the tariffs and import regulations being liberalised, exports of products will
become easier.
HKTDC, established in 1966, is a statutory body
dedicated to promoting Hong Kong’s trade in goods and services.
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