Not easy to discount China on trade: Experts

The RSS affiliate body Swadeshi Jagaran Manch and all India traders’ body have raised the pitch for levying additional tariffs on China and boycotting imports from the country but experts say discounting the northern neighbour on the trade front is not possible until India becomes fully self-reliant.

Currently, the country depends heavily on China for a host of imports.

According to the government data, China is one of the leading trade partners of India. The top imports from China include electrical machinery, nuclear reactors, organic chemicals, fertilisers, auto component, iron and steel and chemical products.

In 2018-19, at least 60% of India’s total import of electrical machinery and equipment came from China, nearly 70% of machinery and nuclear reactors arrived from the neighbouring country, plastic imports were a whopping 82% from China, fertilisers and organic chemicals too were above 60%.

China accounts for over 17% of India’s total imports and over 8% of its exports. India China trade was over $92 billion in 2019 but it was heavily tilted in China’s favour. “A sudden curb on Chinese imports will do more harm to the country. We need to first escalate our manufacturing capacity,” said engineering export promotion council.

As far as finished goods are concerned, India’s imports range from mobile phones to airconditioners and auto components from China. Besides, nearly three-fourths of electronic components arrive in the Indian market from China. Textiles, leather goods and consumer durables are some of the other imports for which India heavily depends on the neighbouring country. China also accounts for 25% of India’s automotive part imports. Generic dugs are most impacted.

The reliance on Chinese imports are as high as 70%, according to a KPMG study, which showed how China impacted India during Covid-19.