Govt seeks product details to curb low quality imports from China: Sources

An industry source said that they are preparing their views on all those products and would soon send to the commerce and industry ministry.
The government has sought product-wise details of cheap imports, a comparison with domestic prices and tax disadvantages, if any, from the industry to curb low-quality inbound shipments especially from China and boost domestic manufacturing, sources said.

They said a high-level meeting to discuss ways to promote Atmanirbhar Bharat (Self-reliant India), including a cut in import dependence from China, also took place recently in the Prime Minister's office.

Industry was asked to send comments and suggestions on certain number of goods and raw materials imported from China, which include wristwatches, wall clocks, ampoules, glass rods and tubes, hair cream, hair shampoos, face powder, eye and lip make up preparations, printing ink, paints and varnishes, and some tobacco items, one of the sources said.

The other details sought include import surge data between 2014-15 and 2018-19; domestic prices of similar goods that are made here, domestic capacity, imports under free trade agreements, and inverted duty issue, if any.

An industry source said that they are preparing their views on all those products and would soon send to the commerce and industry ministry.
The exercise to reduce and curb imports from China assumes significance in the wake of border tensions between the two countries.

China accounts for about 14 per cent of India's imports and is a major supplier for sectors like cell phones, telecom, power, plastic toys and critical pharma ingredients.

The government has recently put import restrictions on tyres, while also making its prior approval mandatory for foreign investments from countries that share land border with India to curb "opportunistic takeovers" of domestic firms, following Covid-19 pandemic, a move which will restrict FDI from China.

During April 2019-February 2020, India imported goods worth $62.4 billion, while exports to the neighbouring country stood at $15.5 billion in the same period.

The main goods imported from China include clocks and watches, musical instruments, toys, sports goods, furniture, mattresses, plastics, electrical machinery, electronic equipment, chemicals, iron and steel items, fertilisers, mineral fuel, and metals.

India has time and again raised concerns over widening trade deficit with China which stood at about $47 billion during April-February 2019-20.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel