India reducing dependence on China – Industry Seeks ‘atamnirbharta’

India reducing dependence on China

Image source: The Indian Express

India reducing dependence on China is of-late becoming biz sentiment as global countries aim for blacklisting Chinese products.

Humungous grappling task

  • Considering India’s vast commercial obligations on China, the issues how India reducing dependency on China for trade, our readiness to take some egregious steps, and the possible strategy route, are unnerving. While the world is hunting for Chinese substitutes, India is facing higher demand for Chinese products on one hand and combating a strategic boundary war with China on the other hand.
  • Indian companies are strongly advocating before the government for India reducing dependency on China for its imports’ requirements, and formulation of steps to impose Covid-19 import duties on non-essential goods, and the exclusion of customs duties on plants and machinery from other nations.
  • For instance, “the recommendations include imposing Covid-19 import duties at around 15% on secondary imports across regions, even for products routed through countries that have free-trade agreements with India,” a senior official notified ET.
  • Moratorium of commerce concessions under FTAs, lessening customs duty on plant and machinery imported from Japan, the US and Europe, are also the factors of recommendations.

Sectoral assertions

  • Industry associations are concocting sectoral presentations to the government.
  • The automobile components industry commends for stringent norms to prevent poor Chinese imports pitching India through FTAs, ASEAN pacts. It also asked for a legal investigation into the issue.
  • As per Jayant Das Gupta, India’s former ambassador, “India has a lot of capable human resources in areas such as pharmaceuticals, auto, and electronics, but we expected to erect alternative supply chains with partners in the Far East, Europe, and the US, at the time we look to split our dependency on China, which is expected to be achieved through minimum of five years of our actions;
  • Nonetheless, there were thwarting opinions on specific items. While the chemicals industry pursued duty on imports from China, the pharmaceutical industry contradicted the action, claiming it would raise their costs and infringe with drugs that are under price control.
  • The cement industry also prohibited exports of grade limestone and initiated import duty on cement and clinker.
  • Textile companies endorsed for laws that make China unable to haul its products to India through Bangladesh. The proposal for an outright prohibition on import of petrochemical products is formulated where the local industry has the power of meeting the domestic market
  • Doubling of import duty on synthetic fibers is also under consideration as ample domestic capacity is available in the nation.
  • Paper Recycling Industry is also eyeing ways to reduce dependence on China for paper and paperboards.
  • As per Government’s data, India’s imports from China for mobile phones, telecom, power, plastic toys and critical Pharma ingredients have also declined considerably in 2019-20.


Reducing the dependence on Chinese imports will make the country self-reliant, self-sufficient and will truly epitomize PM Modi’s theme for Atamnirbhar Bharat.

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *