A government official says PLI schemes for various sectors will help reduce dependence on imports over time and technical regulations designed for products such as toys, electronics, chemicals and fertilisers will check substandard imports.
A government official says PLI schemes for various sectors will help reduce dependence on imports over time and technical regulations designed for products such as toys, electronics, chemicals and fertilisers will check substandard imports.
A senior government official said India’s trade equation with China has improved in recent years, with exports growing at a faster rate than imports, whose growth is largely driven by critical raw materials and telecommunications and power. As is being done to meet the demand of high growth areas.
China is one of India’s major trading partners, with trade flows between the two countries increasing from about $72 billion in 2014-15 to $115.4 billion in 2021-22.
“Ever since India-China trade picked up, the growth in exports to China has been much higher than the growth in imports,” a commerce ministry official said. Hindu,
From $11.9 billion in 2014-15, India’s exports to China grew by 78.1% to $21.25 billion last year, while imports stood at $94.16 billion, up 55.8% from $60.4 billion recorded in 2014-15. In contrast, imports from China increased by 192% between 2006-07 and 2013-14, when they crossed $51 billion, he pointed out.
Intermediate goods account for more than a third of India’s imports from China, while capital goods account for another 19.3%, with telecom and power sector equipment being the major drivers, thereby meeting domestic demand in these fast-growing sectors, the official said. helped to do.
The major items imported from China are electronic components, computer hardware and peripherals, telecommunications equipment, organic chemicals, industrial machinery for dairy, residual chemicals and allied products, electronic components, bulk drugs and intermediates.
“India’s dependence on such Chinese goods can largely be attributed to the gap between domestic production and demand, and China being a manufacturing hub and the subsidies provided by its government to the sugar industry,” the official said. And there is price competitiveness because of the economies of scale.” ,
He stressed that production-linked incentive schemes for various sectors would over time help reduce dependence on such imports, even substandard technical regulations designed for products such as toys, electronics, chemicals and fertilisers. Imports will be banned.