India has recently implemented a series of protectionist policies in trade, investment, and market access in an attempt to “de-sinicize” the economy. According to a Reuters report on the 11th, Indian Minister of Small and Medium Enterprises Nitin Gadkari said on Monday that the Indian government plans to promote the production of certain specific products in the country, especially products that China has a large share of the global market.
Reuters said that in fact, in the past few months, the Indian government has announced production-related incentives to encourage the manufacture of electronic products, medical equipment and pharmaceutical products, while restricting the import of similar products from China. According to a report from The Times of India on the 11th, the Indian government is considering imposing tariffs on nearly 20 products including laptops, cameras, textiles and aluminium products, and at the same time imposing import permits on some steel products. This move will be India’s latest restrictions on imports from China imports. On the other hand, India’s imports from China have risen for two consecutive months since June.
To what extent can India get rid of Chinese products? “The Logical Indian” news network quoted a report recently released by the Research and Information System Research Center for Developing Countries in India on the 10th, saying that out of about 4,000 products imported from China, including mobile phones, telecommunications equipment, cameras, solar panels, 327 products, such as air conditioners and penicillin, can be sourced from other (third) countries or can be produced in India. The report stated that the value of the above-mentioned “sensitive imported products” accounted for 3/4 of the total imports from China.
India’s restrictions on Chinese products hurt many multinational companies. Germany’s Frankfurter Allgemeine Zeitung reported on the 11th that Volkswagen India’s General Manager Bhopare deplored the current lack of business convenience in India in an interview with the Indian media and called on the Indian government not to build a “higher separation wall” against China. Restricting or delaying the import of key parts and components from China is a retrogressive measure. Restricting imports will damage India’s domestic competitiveness and will also affect the country’s export prospects.”
In an interview with the Global Times reporter on the 11th, Zhao Gancheng, a researcher at the Shanghai Institute of International Studies, said that China has a high market share and large export volume in IT products, “be it network products or mobile terminals, including telecommunications equipment, it is estimated that they will be the first to be affected by this round of Indian localization policies.” In addition, China’s mechanical and electrical products, chemical products, and raw materials may also be severely hit by India. “But whether India can achieve self-sufficiency through indigenous production is doubtful”.