In Budget 2023, the Centre is likely to announce steps to reduce import dependence on China through several tariff and non-tariff measures. The country may continue to import goods and raw materials from China, but it may curtail the entry of finished goods, a report in Mint said today.
The imports of finished goods entering the country directly or indirectly via a third country will most likely be restricted, the report added.
This comes amid India’s efforts to push for stricter implementation of agreements with China against the backdrop of the 20-month-long standoff between the armies of two countries in Ladakh. Moreover, the efforts have been boosted after the two sides clashed again in Arunachal Pradesh on December 9.
A major step that is expected to be taken is a recalibration of customs duty. “Recalibration of customs duties is expected on several items,” one official aware of the matter told Mint.
Companies have also reportedly raised their objection over imports of over 100 Chinese products including solar cells, vinyl tiles, saccharin, aluminium foil and pharma formations including ofloxacin, the report added.
“Matters are under examination for appropriate actions. It is expected that the Budget will address this issue,” another official in the know added.
The imports from China have reduced last month. According to commerce ministry data, India’s merchandise imports from China in October fell 9.73 per cent to $7.85 billion compared with $8.7 billion in October 2021.
The Production-Linked Incentive (PLI) Scheme is also expected to play a major role in reducing Chinese imports.