Published 15:31 IST, July 31st 2020
Major setback to Chinese trade as India puts import of TV sets in restricted list
In a big setback to China's trade, the Indian government on Friday, July 31, amended the import policy of colour television sets from 'free' to 'restricted'.
In a big move on Friday, the Centre has amended the import policy of colour television sets from 'free' to 'restricted'. Amid the faceoff at the Line of Actual Control, this step is another setback to Chinese trade in India. As per sources, this is likely to affect Chinese TV sales in the country to the tune of over one billion dollars. The Directorate General of Foreign Trade shall separately issue the procedure for the grant of license.
The increasing clamour for checking China's economic influence
20 Army personnel martyred in the violent clash with China at the Line of Actual Control on June 15 led to national outrage. There have been growing calls for drastically altering the economic relationship with China in the wake of this dastardly incident. For instance, the Confederation of All India Traders (CAIT) has launched a nationwide campaign called 'Bharatiya Saaman-Hamara Abhiman' to boycott Chinese products. The Centre has already taken a number of steps against China in the pursuit of the Aatmanirbhar Bharat (self-reliant India) goal.
Restriction on imports
First, India's exit from the RCEP would protect Indian industry from cheap imports and help vulnerable sectors including farmers, dairy sector and MSMEs. In the recent Union Budget, the customs duty has been increased on 89 items such as footwear, toys, furniture and pressure vehicles to curb non-essential imports. Moreover, restrictions have been imposed on 13 items in the last year which includes items imported from China. As per notification dated June 12, import of tyres for bicycles, cars, motorcycles, buses and lorries were restricted. They can be imported only with a license from the DGFT.
Furthermore, FDI coming from China is allowed only through the government route. The average time taken by the DGTR to initiate and complete anti-dumping investigations has come down to 33 and 234 days respectively. Additionally, the Public Procurement (Make in India) Order was revised to ban the participation of foreign suppliers where the estimated value of the purchase is less than Rs.200 crore. The Reciprocity Clause was invoked against countries which discriminate and restrict Indian companies to participate in their procurements. Recently, the Information and Technology Ministry banned 47 Apps which were variants or clones of the 59 Chinese-linked Apps banned earlier.
Updated 15:31 IST, July 31st 2020