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The UAE, and in particular, Dubai is a very significant hub for movement of consumer electronics and digital products which are hand carried into India. Very competitive pricing, proximity to India, and between 700 to 800 flights a month from various airlines into different Indian cities have added to Dubai's importance for this business. On an average, it is estimated that close to 20,000 sets a month are being carried by passengers from the uae, mainly Dubai, into various Indian cities. With the imposition of such high duties, there is likely to be a very serious impact on this business in the short to medium term. However, Dubai has always been a lucky trading city. When one door shuts, strangely, some other avenues open up rather quickly. Also imposition of such high duties is restrictive, but may also lead to opening up more corrupt channels at the India end, which might actually negate to some extent the purpose for which this exercise is being set up by the government of India.
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