Budget FY24: In the budget of the financial year 2024, measures can be announced to reduce India’s import dependence from China through various tariff and non-tariff measures.
Indian Budget FY24 : India will continue to import raw materials and intermediate goods from its neighboring countries but direct imports into India (Import in India) made Chinese finished goods (Chinese Goods) or may violate the “Rule of Origin” criteria by sending it through a third country. The move comes amid India’s efforts to honor existing agreements regarding the Line of Actual Control in the context of the 20-month-long standoff between the two countries at the Line of Actual Control (LAC) in Ladakh. This also comes in the immediate context of the skirmish between the two sides along the LAC in Arunachal Pradesh following an infiltration attempt by Chinese troops, which was repelled.
One way to check the influx of Chinese finished products is through customs rechecking. Other anti-dumping duties, non-tariff measures such as stricter enforcement of rules of origin and incentives are aimed at encouraging cost-effective local manufacturing, officials said. Customs duty is expected to be reorganized on many items.
This issue will be resolved in the budget
Indian companies and government departments have raised red flags on the import of over 100 Chinese products, including polyester yarn, optical fibre, solar cells, vinyl tiles, saccharin, eye lenses, various steel items, chemicals, ceramics, tableware, Kitchen utensils included. The second official said glassware, aluminum foil and pharmaceutical formulations like amoxicillin and ofloxacin. The matter is being investigated for appropriate action. It is expected that the budget for the financial year 2024 will address this issue.
India’s import of goods from China decreased
Let us tell you that recently there has been a decline in imports from China. While the drop in prices due to lack of global demand could be one of the reasons, the government’s Atmanirbhar Bharat policy has also played a major role. According to commerce ministry data, India’s goods imports from China declined by 9.73% to $7.85 billion in October 2022, compared to $8.7 billion in the same month a year ago, an official said.
Experts said the government’s trade policy and Production Linked Incentives (PLI) scheme to promote local manufacturing is working well in reducing excessive dependence on “unreliable” China and the budget is aggressively pursuing the same policy line. can be extended further.
PLI reduced imports
As a reliable supplier, Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organizations (FIEO), said China’s share in India’s imports in the last one year (April-September 2022 to 21 in the same period) There has been a decline. In many areas, alternative sources of supply have been arranged as China, with its zero Covid policy, was not considered. He said that the main items of India’s imports from China are electronics, electrical goods and machinery and all are covered under PLI to develop domestic capabilities. PLI has already reduced imports in some electronics products while increasing exports.
Attention will have to be given to those who import more than 80%
Nilay Verma, co-founder and CEO of consultancy firm Primus Partners, said that India not only needs additional short-term measures around tariff and non-tariff regime, but also needs a long-term strategy to establish a reliable supply chain. A proactive approach in identifying and taking measures against dumped goods has shown some success in the short term. To win the marathon, India needs sustained focus and expansion of schemes such as PLI, cluster development and Gati Shakti, aimed at improving logistics. Electronics, engineering and chemicals, which account for more than 80% of imports from China, need special attention, he said.
India can reduce dependence on Chinese imports
Expressing concern over the dumping of cheap but poor quality Chinese goods, PHD Chamber of Commerce and Industry (PHDCCI) President Saket Dalmiya said that the Indian industry is aligned with the government’s policy of self-reliant India. Citing a study by PHDCCI, he said, there are around 36 sub-sectors where India can reduce its dependence on Chinese imports. The total import of these sectors is about 35 billion dollars.
English News Headline : Budget FY24 Can Indian government ban Chinese imports.
Source: www.tv9hindi.com”