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Indian parallel market in memory cards impacted by drop in duties.
June 19th, 2007 Border, Customs, India none Comments

As with any market, costs govern the price and the profits. The Economic Times of India reports that the Indian government has cut the duty on memory cards, usb drives and memory sticks from 21% to 4%. The three leading memory card vendors in India, Kingston, Transcend and Sandisk are expected to cut their prices by 15% in the coming months. This drop in price is expected to weaken, but not destroy, the thriving parallel market which currently constitute 95% of all memory card sales in India. Due to the restrictive nature of the Indian market, most parallel market memory cards are smuggled into the country thereby evading any payment of duties. The price reduction will more than cut in half the parallel market price advantage.

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