Since January 2020, China’s exports to India have fallen by 24.7% year-on-year to $32.28 billion, data from the Chinese government customs has revealed this. Highlighting the recent skirmishes at the Galwan border between the two countries.
At the same time, since the beginning of 2020 over-all trade with India has registered an 18.6% drop to at $43.47 billion. But, in July China’s exports saw a slight jump to $5.6 billion, up from $4.79 billion in June 2020.
Recently, India has been working out policies to analyze to curve the influx of Chinese goods and apps into the country.
The Directorate General of Foreign Trade (DGFT) passed restrictions on the import of television sets late in July to boost local manufacturing. In the FY2019-20.
In the meantime, Chinese smartphones’ share in the Indian market fell to 72% during the June quarter 2020 from 81% in March quarter 2020.
According to a recent Reuters report, India is considering ways to stop Southeast Asian trade partners, from re-routing Chinese goods to India with little added value. This initiative will mainly target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among other items.
The Indian govt. is also planning to enforce licensing requirements for import of Chinese goods from 20 sectors, including furniture, toys, sports goods, textiles, air conditioners, leather, footwear, agro-chemicals, CCTVs, ready-to-eat food, steel, aluminum, electric vehicles, auto components, TV set-top boxes, ethanol, copper and biofuels, to lift local manufacturing of these items.
Recent reports have also suggested that India is also intending to increase customs duty on imported active pharmaceutical ingredients (APIs) by 10-15%. The Indian pharmaceutical industry rests heavily on imports from China, with 68% APIs and more than 90% of antibiotics being obtained from the country.