Govt Plans to Reduce Dependency on China by Strengthening Indigenous Supplies

reduce dependency on China

Image source: The Financial Express

Government reducing imports from china is an approach to blacklist Chinese goods and plan to reduce dependency on China in the context of nationwide outrage. It seeks to focus on domestic industrial growth.

Self-sustainability measures

  • According to the data, China reckons for about 14% of India’s imports and is a leading supplier to sectors such as mobile phones, telecommunications, energy, plastic toys and essential pharmaceuticals, and that the only route to reduce dependency on China’s imports is to foster a sectoral policy. It is one of the means for boosting a trade surplus which is heavily skewed with countries like China, “said the sources.
  • To restrict non-core Chinese products, the government is planning to ban low-quality import and accordingly technical regulationsare notified with respect to safety and quality standards for about 370 products.
  • The prohibited products entail: chemicals, steels, consumer electronics, heavy machinery, telecommunications goods, paper, rubber pieces, glass, industrial machinery, metal parts, furniture, pharmaceutical and pesticide, and food, textile items. Policymakers are also looking at the non-tariff limitations that India’s trending partners like China are enforcing.
  • The other initiatives like bringing overseas businesses for creating substitute global trade also aim to reduce dependency on China’s imports. Recently the restriction is levied on Tyres, and further Government’s assenthas been made as a compulsory prerequisite for foreign ventures from countries that share land borders with India to avoid domestic firms’ ”opportunistic takeovers”.Additionally, a step restricting FDI from Chinaafter the COVID-19 outbreak is also taken.
  • After Modi came to power in 2014 he has promised to encourage and preserve the local manufacturing sector. In past months, he has supported “Made in India” initiative, and last month started a campaign called “Atmanirbhar Bharat,” or a self-reliant India. India’s primary concerns had been about the scale of its tariffs on Chinese imports, an issue that has been elongated by the military shootout in eastern Ladakh’s Galwan valley this month.
  • In March, the government-sanctioned a package comprising four schemes with a cumulative estimated cost of Rs 13,760 crore to promote domestic manufacturing of drugs and medicines together with the exports, to lessen API (active-pharmaceutical-ingredients) dependency on China.
  • The government is meticulously identifying the supply-chain operations based on availability of skilled and trained workers, and the career opportunities’ potential, sources said.
  • The government also established a high grade authorized team of secretaries, headed by the cabinet secretary and a project development cell (PDC) in ministries/ departments to entice foreign investors. India has repeatedly voiced concerns over broadening China’s trade deficit in April-February 2019-20 which stepped at about $47 billion.
  • In 2019, India’s trade deficit with China reached $56.77 billion, as per the latest trade data released by the General Administration of Customs of China (GACC). The two nations’ trade balance is estimated at $92.68 billion annually.


The self-reliant India mission will tread the country in global economic environment as a potential supplier’s hub.

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