After the recent clash between India and China army men at Twang border the industry owners have been advised to stop imports from China completely. Earlier, about 30 months ago during clash with Chinese army men at Galwan border decision was taken to ban imports from China but could not be implemented, rather imports from China witnessed increase. According to industrial experts the situation can only be tackled in case industry entrepreneurs of our country come forward, meet the challenge and develop such products being imported from China in the country.
The Financial World when talked to large number of industry entrepreneurs in the country, they opined that complete ban on imports from China is not possible at this stage since most of the manufacturers especially in Pharmaceutical, chemical and electronic sectors are dependent on China to procure raw material and unless manufacturers in the country start developing these products locally, which are being imported from China at present but it is possible only if these manufacturers in the country are provided full support by the government. Information reveals, Modi government in the country has already introduced production linked incentive (PLI) scheme for over a dozen products mainly in Pharmaceutical, electronics and fertilizer manufacturing sectors for which domestic manufacturers are fully dependent on China as such after PLI scheme has been introduced in the country nearly 33% fall in imports has been recorded in pharmaceutical sector and 23% fall in imports has been recorded in electronics and electrical sector. Information reveals, during month October 2022 goods of value worth 7.85 Arab Dollar has been imported from China as compared to month October in 2021 recording 9.73% fall in imports from China.
According to Foreign Trade Directorate information, since past four months there is continuously drop in imports from China identified as 10.2 Arab Dollar during month July this year, 9.4 Arab Dollar during month August this year, 8.4 Arab Dollar during month September this year and 7.85Arab Dollar during month October this year. According to prominent industry owners in Haryana state it is not possible to stop imports from China completely at this stage when most of the industry in our country is dependent on imports of raw materials from China and in case imports from China are completely banned hundreds of industrial units in the country will have to close down their shutters. The entrepreneurs told that import of raw material from other countries like Germany is also possible but their prices are too high as compared to prices in China as such production cost will rise too much. Sources reveal, our government is seriously working on the issue of developing large number of raw materials in the country and has already started producing raw material used in pharmaceutical products under PLI scheme thus reducing imports from China as well as other countries.
Having a look at the exports from China in past eight years Modi government rule in the country it has been recorded during year 2014-15 as 60.41 Arab Dollar, during year 2015-16 as 61.70 Arab Dollar, during year 2016-17 as 61.28 Arab Dollar, during year 2017-18 as 76.38 Arab Dollar, during year 2018-19 as 70.31 Arab Dollar, during year 2019-20 as 65.26 Arab Dollar, during year 2020-21 as 65.21 Arab Dollar, during year 2021-22 as 94.57 Arab Dollar. Due to Corona epidemic outbreak spread in China presently possibility of shortage of raw materials is suspected in the near future as such pharmaceutical and chemical industry in our country importing raw material too is worried. Former Chairman of Federation of Indian Export Organizations Sharad Kumar Saraf told that industry in China is presently in the grip of severe epidemic outbreak facing severe labour problem since most of the workers are in the grip of fever and most of the industrial units in China are working at 40-50% production as such Indian manufacturers will have to import raw material from other countries at higher prices.
