Increasing domestic production in sectors such as chemicals, automotive components, drug formulations and consumer electronics will help in reducing imports worth about USD 35 billion from China in the coming times, according to a report.
Industry chamber PHDCCI said that in recent years, imports from China have increased significantly and it was about USD 87 billion in 2021.
India has significant scope for producing more import substitution in the sectors, including chemicals, bicycle parts, handicrafts, cosmetics and leather-based goods, PHDCCI president Pradeep Multani said in a statement.
Enhanced production in these sectors will not only reduce imports from China but also boost India’s exports, he added.
According to the report of the chamber, “India holds the immense potential to reduce 40 per cent imports (around USD 35 billion) from China in the coming times as there are various product categories which India also produces but at a lower volume.” Imports from China have changed from low-value, low-cost products like toys and crackers to high-value items like electronics, he said.
Multani added that since the domestic market has production capabilities; these sectors can readily minimise their dependence on China in a phased manner without any substantial extra investments. NewsDrum