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Auto and pharma unready to wean off China:
News:
- According to the automobiles and pharmaceuticals industries, finding ways to cut imports from China in the sector is not easy.
More in news:
- India relies on China for products such as electronic components and drug ingredients because it cannot make them or source them elsewhere as cheaply.
- Thus, any moves to curb imports or make them costlier without developing alternatives will hurt local businesses.
Curbing non-essential products:
- India imported about $70.3 billion of goods from China in the fiscal year to March 2019, and exported just $16.7 billion.
- The government is now consulting with companies on tightening curbs on 1,173 non-essential products.
- They include toys, plastics, steel items, electronics and specific auto components — which feed vehicle manufacturing.
Not so easy replacement:
- Over a quarter of India’s auto-part imports- $4.2 billion, came from China in 2019, including engine and transmission parts.
- Some of these components are critical and hard to source elsewhere immediately.
- Chinese supplies have also been a key factor in India’s booming drug industry, which exports cheap generic medicines.
- India gets about 70% of its supply of active pharmaceutical ingredients (APIs) from there, industry officials said.