Hong Kong, the world’s eighth-largest trading economy, sees “a good possibility” of importing consumer electronic components from India and will “encourage” local companies to set up assembly plants there with the aim of bolstering economic and business ties.
Terming the potential entry as “a win-win situation”, It has stressed on stepping up the programme of exchange and understanding between the two countries and signing of the Double Taxation Agreement and Investment Protection Treaty for promotion of trade and investments.
However, on the bilateral trade front, Hong Kong expects a growth in exports to India, but sees imports from India to stay flat.
“Yes, there is a good possibility (of imports) of parts and components for making consumer electronics products. Because we are the largest exporter of telephones, mobiles in world. So, we need parts for finished products,” Hong Kong Trade Development Council (HKTDC) Deputy Executive Director, Raymond Yip told Indian reporters here.
“Because we also trade in products and we don’t buy for our 7.3 million people here. We buy actually for 1.3 billion people in China, we buy for the world. We can buy worth USD 1.4 billion per day for the world.”
He further said local companies in Hong Kong can also be encouraged to invest in India by setting up assembly plants to tap the big domestic market there in the wake of rising income of the middle class.
According to HKTDC, Hong Kong does not produce components itself and imports the same from China, the US, Japan, Korea, Taiwan, Malaysia. And this is where India can fit in, Raymond noted.
“India excels in making good quality telecom components because of your domestic research and development and the presence of MNCs… electronics is our biggest industry. Out of USD 462 billion of our exports, half is electronics,” Raymond said.
“We could import that from India because you produce some good components because we need components and parts to make products for exports.”
Hong Kong’s total exports to the world last year stood at USD 462 billion while its imports remained at USD 518 billion.
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.
HKTDC, established in 1966, is a statutory body dedicated to promoting Hong Kong’s trade in goods and services.