The government might impose duties to the range of 50 per cent on products ordered from Chinese e-commerce platforms like ClubFactory, AliExpress and Shein, The Economic Times reported. The tax will be levied at the payment stage, the publication claimed.
This could be a big issue for the Chinese companies as India is one of the main markets of focus for China's major cross-border e-commerce players due to high potential for economic growth.
Five of the top 10 best performing cross-border e-commerce Chinese apps in the first five months of 2019—such as ClubFactory, Shein, ROMWE and JollyChic—focussed on the Middle East and India markets, according to a report from app data provider AppAnnie.
According to the report, the Indian market enjoys a huge population and high potential for economic growth, thus attracting many e-commerce players to expand their presence, state-run Xinhua news agency said.
Smartphones are popular in Arab countries and local consumers have strong purchasing power. But the oil-rich countries lack textiles and other light sectors, offering cross-border e-commerce opportunities for products like apparel.
Alibaba's AliExpress tops the list.
-Inputs from PTI
