{"id":167040,"date":"2022-02-07T20:01:02","date_gmt":"2022-02-07T14:31:02","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=167040"},"modified":"2022-02-07T20:01:02","modified_gmt":"2022-02-07T14:31:02","slug":"answered-what-are-the-factors-that-are-driving-indias-increasing-imports-from-china-what-are-the-steps-taken-by-the-government-to-reduce-indias-dependence-on-china","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-what-are-the-factors-that-are-driving-indias-increasing-imports-from-china-what-are-the-steps-taken-by-the-government-to-reduce-indias-dependence-on-china\/","title":{"rendered":"[Answered] What are the factors that are driving India\u2019s increasing imports from China? What are the steps taken by the government to reduce India\u2019s dependence on China?"},"content":{"rendered":"<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><b><span data-contrast=\"auto\">Introduction: <\/span><\/b><span data-contrast=\"auto\">Mention the current state of bilateral trade and implication of the same.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\"><br \/>\n<\/span><b><span data-contrast=\"auto\">Body: <\/span><\/b><span data-contrast=\"auto\">Write about the factors responsible for the rise in imports from China. Write the steps taken by the government to address the rising imports.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\"><br \/>\n<\/span><b><span data-contrast=\"auto\">Conclusion: <\/span><\/b><span data-contrast=\"auto\">Briefly about the importance of reducing the imports from China<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span data-contrast=\"none\">India\u2019s <\/span><b><span data-contrast=\"none\">bilateral trade with China crossed $125 Bn in 2021<\/span><\/b><span data-contrast=\"none\"> with <\/span><b><span data-contrast=\"none\">imports<\/span><\/b><span data-contrast=\"none\"> accounting for about<\/span><b><span data-contrast=\"none\"> $ 100 Bn<\/span><\/b><span data-contrast=\"none\">. Some of India\u2019s key imports from China include smartphones, components for smartphones and automobiles, telecom equipment, plastic and metallic goods, active pharmaceutical ingredients (APIs), and other chemicals.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The high negative balance of trade with China and the Indian economy\u2019s dependency on China makes the already complicated India-China relation even more difficult to navigate. Especially in the view of tensions on the border.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Factors responsible for increasing India\u2019s import form China.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Indian <\/span><b><span data-contrast=\"none\">manufacturing sector is growing, which requires intermediate goods<\/span><\/b><span data-contrast=\"none\">. This requirement was fulfilled by Chinese imports because Indian market could not fulfill this requirement. For example, API (Active Pharmaceutical Ingredients) in pharmaceutical sector.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Growth of purchasing power<\/span><\/b><span data-contrast=\"none\"> in Indian economy along with the demand for cheaper goods.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">India in the past did not diversify its supply chains<\/span><\/b><span data-contrast=\"none\"> which remained largely dependent on China. For example, the Indian electronic goods space is still largely focused on the assembly of products and did not have much discretion in sourcing of components.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">The <\/span><b><span data-contrast=\"none\">growth of Chinese manufacturing sector,<\/span><\/b><span data-contrast=\"none\"> in the last few decades, whereas the Indian manufacturing sector remained sluggish and comparatively inefficient.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Given the <\/span><b><span data-contrast=\"none\">geographical proximity of China and low prices offered by Chinese firms<\/span><\/b><span data-contrast=\"none\">, it is cheaper and economically efficient to import from China rather than domestically.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><b><span data-contrast=\"none\">China recovered early from the COVID wave<\/span><\/b><span data-contrast=\"none\">, while Indian economy was still struggling, it gave a push to imports from China.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">To address the high negative trade balance with China, the government took many steps.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Strengthening domestic capabilities.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span>\n<ul>\n<li><b><span data-contrast=\"none\">Identified 12 sectors<\/span><\/b><span data-contrast=\"none\"> &#8211; to make India a global supplier and cut import bills.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Production linked Incentive scheme<\/span><\/b><span data-contrast=\"none\"> for promotion of manufacturing and investment in India.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Rationalization of taxation regime<\/span><\/b><span data-contrast=\"none\"> to attract investment.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Targeted import substitution schemes<\/span><\/b><span data-contrast=\"none\"> like package of 4 schemes for API.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Focus on ease of doing business <\/span><\/b><span data-contrast=\"none\">in India to make India attractive for global players.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Schemes like <\/span><b><span data-contrast=\"none\">Make In India <\/span><\/b><span data-contrast=\"none\">to promote manufacturing.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Protecting Indian industries<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span>\n<ul>\n<li><span data-contrast=\"none\">Modified <\/span><b><span data-contrast=\"none\">foreign direct investment (FDI) rules. It was aimed to prevent<\/span><\/b><span data-contrast=\"none\"> any FDI in Indian firms &#8211; aimed at opportunistic takeovers of domestic firms by Chinese companies during the pandemic.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Power Ministry imposed a de facto ban<\/span><\/b><span data-contrast=\"none\"> on the import of power equipment from China citing cybersecurity concerns<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Keeping <\/span><b><span data-contrast=\"none\">Chinese firms out of 5G trials<\/span><\/b><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">India has also <\/span><b><span data-contrast=\"none\">tightened a watch on dumping of goods <\/span><\/b><span data-contrast=\"none\">from China in India.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Diversifying Indian supply chains<\/span><\/b><span data-contrast=\"none\">, by cooperating with like-minded countries. For example, Supply Chain Resilience Initiative (SCRI) and bilateral collaboration with countries like the USA for semiconductors.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">India\u2019s high dependence on China along with rising tensions on borders, create the need for India to reduce its dependence on China and create domestic capability. India shall focus more on it creating domestic economic strength because it not only reduces reliance on China but also will be helpful for overall growth of Indian economy.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Mention the current state of bilateral trade and implication of the same. Body: Write about the factors responsible for the rise in imports from China. Write the steps taken by the government to address the rising imports. Conclusion: Briefly about the importance of reducing the imports from China\u00a0 India\u2019s bilateral trade with China crossed&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-what-are-the-factors-that-are-driving-indias-increasing-imports-from-china-what-are-the-steps-taken-by-the-government-to-reduce-indias-dependence-on-china\/\">Continue reading <span class=\"screen-reader-text\">[Answered] What are the factors that are driving India\u2019s increasing imports from China? What are the steps taken by the government to reduce India\u2019s dependence on China?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-167040","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/167040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=167040"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/167040\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=167040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}