Thursday, 1 September 2016

India to export electronic components to Hong Kong

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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