Question

Consider a hypothetical US company who is considering its expansion in India (soft drink company)

Need the below information

Trade restrictions

a)Embargoes

b)Quotas

:250 words

No copy please.Use your own words.

Answer 1

Various state governments like Gujarat and Madhya Pradesh in India have banned the sale of the soft drinks in schools and government offices.Despite the huge popularity of the drinks, the companies are often held up as symbols of Western cultural imperialism.The recent uprising FMCG empire 'Patanjali' has given the FMCG sector and soft drinks industry a stiff competition.

About 1.25 billion Indians consume about 5.9 billion litres of soft drinks in a year. Its soft drink consumption customer base is large but still very less compared to US which is about 20 times more than India.Another major reason is the shift in consumer preferences toward healthier products. Carbonated soft drink makers have faced severe criticism from health officials, governments, and communities alike for the ill-effects of high sugar content, artificial sweeteners, and other harmful ingredients in their products, including those in diet soda variants.

  The GST Council has added the aerated beverages under the 28 percent tax slab rate.This increase in tax will further limit the growth of the beverage industry.Kerala recently introduced a 14.5 percent fat tax on burgers, pizzas, doughnuts and tacos, a move aimed at spreading awareness about obesity and food preferences.States like Kerala and Tamil Nadu have been levying tax on aerated drinks so that farmers in that part who are engaged in coconut farming can be benefitted.Usually, the sales of Aerated drinks go high up in Summer in India.But there is a large customer base which goes unattended throughout the year.Indians love different flavours of soft drinks other than Pepsi and Co-Cola .Mango flavour is the most promising soft drink type in India