Chinese imports worth $12 billion under the scanner of India Govt., including Aluminium products

India reviews measures to restrict imports from China; it is dusting-up by raising basic customs duties on multiple products.

This would begin with non-tariff measures, such as standard specifications for hundreds of items, in the medium term, as per the sources. However, the move is not distinctively China-specific and will apply to imports of the specified items from any country; but the impact of the decisions will be borne by China.

As per the sources, Indian Government is assessing a list of 1,173 items that cover from auto-parts, aluminium die-cast products, compressors for AC, aluminium products, electrical machinery, etc. to zero in on products/ sub-products on which the import duties can be hiked. These items are mostly imported from China and can be substituted with local production without any hassles.

Imports of these 1,173 items from China were worth $11.98 billion in FY19, making up for just 2.3% of India’s total imports that year but 17% of New Delhi’s purchases from Beijing. However, imports of only 47 of these products/sub-products from China were worth over $50 million each in FY19, totalling $5.82 billion.

The idea is not to just to create a dent in Chinese exports to India but also to boost the domestic production to align with Prime Minister Narendra Modi’s campaign “Self-reliant India” and also scouting substitute import destination. However, any such hike in tariff is unlikely to be China-specific.

An official source said: “every great journey starts with a single step and Beijing must know that its action carries a cost”.

“Not taking any retaliatory step will only embolden China. We are not saying any one of these moves will hit China hard. For this to happen, a comprehensive strategy will have to be devised, and it’s being devised to substitute imports, wherever possible.”