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Assessment of Disruption of Imports from China

by Industrial Outlook

Government has banned certain apps in June 2020 and September 2020 on concerns of security and to ensure safety and sovereignty of the Indian cyberspace.  Many apps are available on each of the popular playstore namely Google PlayStore and Apple Store including competing apps with similar functionalities. Government of India has also launched Digital India AatmaNirbhar Bharat Innovate Challenge to give a push to Indian App ecosystem through short listing of the top Indian Apps that have the potential to become global competitors in their respective categories.

Due to the impact of COVID-19 pandemic there were several global and domestic supply side constraints and also a dip in global demand. India’s imports from China during April-July 2020 decreased to USD 16.60 billion from USD 23.45 billion in the corresponding period of the previous year i.e April-July 2019. The details of the imports of Top 50 commodities from China in April-July 2020 compared to April-July 2019 are given at Annexure. Some of the items exhibiting decline in imports include electronic components, telecom instruments, computer hardware, industrial machinery for dairy, electric machinery, residual chemical and allied products, consumer electronics, electronic instruments, fertilisers, products of iron & steel etc. 

To minimise the impact of such disruptions, Government has taken steps to expand domestic capacities and has implemented policies to promote domestic manufacturing through ease of doing business and Production Linked Incentives (PLIs) in select sectors including mobile phones & electronic components and medical devices & bulk drugs. Government has also sensitized stakeholders to source critical imports from diversified sources through the active support of our missions.

The full impact of these measures on the industry will be discernible as the global economy recovers, and revives from the recessionary affects of the pandemic.  

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