Harley Davidson entry in India linked to Indian banks in US

What do ICICI Bank and SBI have to do with a mean machine? The two Indian banks are said to be linking their expansion in the United States with Harley Davidson’s entry into India.With the Bush administration hoping that India would lower import duty for Harley Davidson besides allowing it to ply on Indian roads despite not complying with the Euro emission norms, this seems to be a possibility.

The Indian administration has made it clear that it was not in a position to allow Harley Davidson’s import without complying with the Euro II emission norms. However, the Centre has said that it was willing to follow a system of tariff rate quotas which will mean lower customs duty for a certain number of bikes, beyond which the applicable customs duty will be levied.However the government is likely to push itself into a sticky situation. When it allows tariff rate quotas for Harley Davidson, other automobile makers, who have been complaining of the high import duties in India might also follow suit.

The role of the banks comes in here. India will give the method a try if the US government was willing to grant fresh branch licenses to ICICI Bank, SBI and Bank of Baroda, whose proposals have been pending for several years and also fast-track new rules for export of Indian mangoes.Any progress on Harley Davidson’s case has to be linked to the progress on banking licenses, said a report quoting sources. With Harley Davidson betting big on India, Indian banks could just get a few more US branches.India is in fact trying to seize the chance to negotiate a better deal for its banks, knowing that the Bush administration will look at a good deal for its Harleys.

Source: Financial Express

Related posts:

1. For Harley, selling the brand roars past selling the bike Owning a chromed or custom Harley-Davidson is ?not about transportation; it?s about an experience,? says the company?s chief executive, James...
2. Tag Heuer gets Indian GP F1 track rights Formula One racing, which makes its debut in India this year, has already started catching the fancy of brand managers...
3. Maruti unveils Nano rival to banks Maruti Suzuki India, the country’s largest carmaker, may after all do what everyone expects it to: take on Ratan Tata’s...
4. Indian automobile industry bounces back, sales up 9.83 pc The automobile industry has got its momentum back with April’s overall vehicle sales rising by 9.83 per cent, thanks to...
5. India looks to China for auto components, the world to India Though the global auto makers look toward India for auto components, Indian companies are increasingly heading for China. A news...