Published 16:28 IST, June 19th 2020
Amid LAC faceoff, here is how India has moved to check China's economic influence
The Centre has already taken a number of steps to check the economic influence of China and to achieve the Aatmanirbhar Bharat (self-reliant India) goal.Â
There has been a national outrage in India after 20 Army personnel were martyred in the violent clash with China at the Line of Actual Control on June 15. 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.
Centre takes steps to check economic influence of China
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.
The customs duty on the import of bamboo has been increased from 10% to 25%. The import of milk and milk products from China was prohibited from April 23, 2019, onwards.
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. ADD has been imposed on items from China such as a certain variety of stainless steel, Nylon Tyre Cord Fabric, electronic calculators, sodium citrate, sheet glass, sodium nitrate, Pyrazolone and Digital Offset Printing Plates. The DGFT has also recommended the imposition of duties on other products from China such as Single Mode Optical Fibre, Aniline, Aluminium etc.
The formulation for technical regulations for 371 identified products is under process to stem low-quality imports. The Steel Import Monitoring Systems has been introduced to keep a tight vigil on the import of steel in India. 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.
Updated 16:28 IST, June 19th 2020