In this deadly pandemic, Indian government has decided to take strict actions against the Chinese companies. A confidential meeting is to be held at the prime minister’s office in New Delhi to discuss in detail about the measures and proper guidelines regarding our economies scenario.
The distress between India and china because of this deadly virus is at its peak. People are outraged and becoming hostile towards china and its products. This virus has left the whole world uprooted resulting in huge amount of deaths worldwide. India is trying to curtail its economic reliance on china by taking into view the trade and investment sectors. In order to control this hostile situation India has decided to seal its border with china in terms of any trade. Restrictions are enforced on the participation of Chinese companies in government contract and infrastructure projects. Higher tariffs and custom duties will be charged on any import of finished goods from china.
The meeting will be attended by top officials and salient stakeholders from the prime minister’s office. All the guidelines and positives and negatives of the decisions towards Indian businesses will be analysed in this meeting, says an official. For trade affair tariff and non tariff measures are being taken to depress imports from china which accounted up to nearly $70 billion in 2019, which is more than from any other country. India also had trade deficit with china which calculates up to $53 billion. The Chinese companies have big share of India’s mobile phone and electronic market. India is taking measures to restrain Chinese imports and on the other side also providing an environment for made in India products by making arrangements for the products to reach all the local markets.
India has already left the Regional Comprehensive Economic Partnership (RCEP) which included china and has raised a strict note on denying any export to china. A government official said that measures are being taken to repudiate Chinese companies from participating in any infrastructure projects in India this gives rise to the principle of reciprocity that would seek to restrict participation of companies from countries where India faces a stricture. Various alternatives are being scrutinized by the law ministers on the exact details of the decision drawn. The government has moved to scrap and rework contracts floated by state owned telecom companies BSNL and MTNL to keep out Chinese equipment suppliers over security concerns.
The Atmanirbhar mission is already into force and has gained importance eventually. This mission has boosted the local manufacturing companies and has given proper incentives to manufacture goods and sell them across India. The government has already reserved supply contracts of ₹200 crore for local producers.
“There is a growing concern in the government about overdependence on external supply chains concentrated in a single country especially in crucial segments such as pharmaceuticals and some important machinery in many crucial sectors , which needs to be cut down.” : said by an official.