CHANDIGARH: The aftermath of political tensions between India and Pakistan has affected the sporting goods industry to a massive extent.
Economic Times reports that the Indian government’s withdrawal of the Most Favoured Nation Status to Pakistan and a 200% increase on customs duty on imports has dissuaded importers in the country to take up consignments of sporting goods manufactured across the border.
Many of them had ordered in bulk and as a result of the development, they have now been put on hold at the Attari-Wagah border. Near the border is Jalandhar, the hotbed of Indian manufacturing and dealership of sporting goods across the country. Importers there receive top-quality Pakistani sporting brands such as Sachin, Malik and Ehsaan. These three are renowned to be used in hockey by both the countries.
“The business has come to a halt. It is prudent to return the consignments ordered and paid for, rather than paying over 200% duty,” AR Vee International founder Rahul Bhardwaj, who runs an exclusive, authorised Sachin dealership in the Punjab city, told ET.
“A consignment which was worth $6,000 would now cost us (another) $12,000 if I were to pay the customs duty.”
Besides importing close to 2,000 Sachin sticks per month from Sialkot that cost Rs 1200, his company also exports sports goods to Bangladesh.
Apart from hockey sticks, other sports have also been impacted. For starters, even as a stop-gap solution, goods will have to be more locally manufactured. Till then, all eyes will be on the Lok Sabha 2019 general elections, which could determine a change in government policy dictating trade policies between India and Pakistan.
“The demand for superior quality hockey sticks in a country whose national game is hockey is massive,” Jalandhar-based sports dealer Virender Sharma said.
“We cannot wait for the lifting of customs duty indefinitely, as a result of which we have decided to make arrangements to manufacture them.”
