This month New Delhi asked businesses to look at options to slash imports from China, the days after a dispute with China at the border. However, it is easier said than done situation for our major two industries, vehicles, and pharmaceuticals.
Like many nations, India relies upon China to make or supply products, such as electronic components and drug ingredients, as company and industry figures say.
Any attempt to curtail or make imports more costly without producing alternative goods would, therefore, hurt local industries.
R.C. Bhargava, chairman of Maruti Suzuki India, said, we don’t import because we like to, but because we have no choice. To attract companies to produce locally, we need to be more competitive and lower our costs compared with other countries.
In the fiscal year to March 2019, India imported some $70.3 billion in goods from China and exported just $16.7 billion – China’s most significant trade deficit with each country.
The government is now advising experts on the tightening of curbs on 1,173 non-essential commodities, including toys, plastics, concrete, electronics, and unique automobile parts.
In turn, this is part of Prime Minister Narendra Modi’s push for trade barriers and importation duties on about 300 goods from China and elsewhere.
India also tightened the guidelines for investment in neighboring nations, including China, in April to prevent opportunistic takeovers after the pandemic.
