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    India weighs trade curbs on Turkey, Malaysia over Kashmir comments

    Synopsis

    While India’s bilateral trade with the two was only 2.9% of its total in the fiscal year ended March 31, New Delhi enjoys a trade surplus with Turkey and runs a deficit with Malaysia on account of its reliance on imported palm oil.

    Bloomberg
    By Vrishti Beniwal

    India is considering placing curbs on some imports from Turkey and Malaysia, in response to their leaders’ comments on the autonomy of Kashmir, people familiar with the matter said.

    Prime Minister Narendra Modi’s government is exploring the possibility of both tariff and non-tariff measures to limit import of goods from the two countries, the people said, asking not to be identified as a final decision is yet to be taken. The options include stringent quality tests and a safeguard tax in addition to existing levies, they said.

    Bilateral Trade
    While India’s bilateral trade with the two was only 2.9% of its total in the fiscal year ended March 31, New Delhi enjoys a trade surplus with Turkey and runs a deficit with Malaysia on account of its reliance on imported palm oil. Futures in Kuala Lumpur fell on Tuesday after an influential Indian processors’ group asked its members to refrain from buying the tropical oil from the second-largest producer.

    Spokespersons for India’s finance and commerce ministries couldn’t immediately be reached for a comment.

    graphBloomberg


    ‘Invaded’ Kashmir
    India last month increased customs duty on refined palm oil import from Malaysia by 5% for six months as a measure to safeguard the domestic industry. The duty could be further increased, the people said.

    Malaysian Prime Minister Mahathir Mohamad on Tuesday said the country won’t bring the palm oil issue with India to the World Trade Organization “at the moment” and he won’t retract his comments claiming India had “invaded and occupied” Kashmir.

    Modi separately canceled a planned visit to Ankara this year to show displeasure over Turkish President Recep Tayyip Erdogan’s comments over Kashmir at the United Nations General Assembly. Erdogan had urged India to hold talks with Pakistan following Modi’s August decision to revoke autonomy in Kashmir.

    Key imports from Turkey are mineral fuels and oils, nuclear reactors and salt.

    There is an informal instruction from India’s foreign ministry to go slow on all diplomatic and business relationship with Turkey and Malaysia as part of retaliatory measures, Business Standard reported, citing government officials it didn’t identify.
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    28 Comments on this Story

    Amit sharma403 days ago
    My take on the issue is that for far too long India has punched below her weight and failed to capitalize on her capabilities and strength -thanks to modi its changing and rightly so! China even in the 80-90s when it was a fraction of its current weight economically had drawn clear red lines for countries-if you crossed those the response was swift and disproportionate. India too needs to show this time its red lines and the response should be clear and loud for everyone watching that it cannot be business as usual if you step on our toes. I would say india should do more to punish turkey and Malaysia .
    Praker 405 days ago
    I think Turkey is already suffering and we don’t have trade deficit.. however we will need to take action against Malaysia
    Shadi Katyal405 days ago
    Such steps are not well thought of. Why increase duty on palm oil as it hurt the consumer in India.
    Similarly Turkey trade surplus will be a loss to the nation. Are we going to cut off our noses to save faces.
    Babus are judges etc are being replaced by RSS educated leaders and thus New India is on the march
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