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External Affairs Minister S Jaishankar on Wednesday called for greater use of locally manufactured products by Indian consumers at a time when cheap and highly subsidized imported items are “invading” Indian markets.
India is trying to curb cheap quality imports from countries such as China with the use of several policy measures including quality control orders (QCOs). This comes as China continues to be India’s top import source with imports registering a 4 per cent jump to a record $98.51 billion in FY23. While India is dependent on imports of several items, most importantly, Active Pharmaceutical Ingredients (APIs), trade with China lacks transparency. China’s exports to India have risen consistently but India’s export to China faces multiple non-tariff barriers resulting in a sharp decline over the years.
“To me, particularly because there is a danger of cheap goods or subsidized goods invading our markets, we have to instill pride in the producer but also pride in the consumer. We must consciously say that we should make in India and buy in India and buy what is made in India,” Jaishankar said at the ‘Aatmanirbhar Bharat Utsav celebration’ organised at Bharat Mandapam.
On the importance of One District-One Product (ODOP), which aims to select, brand, and promote at least one product from each district, the minister said, “ODOP is part of our personality. This is very important because in the era of globalisation, various societies and cultures begin to lose their identity and personality”.
Meanwhile, commerce minister Piyush Goyal said that India is not anti-imports.
“The idea is not to close our doors or that imports are bad. We are not anti-import. Atmanirbhar Bharat also means we will also increase our exports and for that if we need to import, we will not stop those. We will leave India’s impression on the cost, competition, and quality front,” Goyal said. In 2023, India’s goods imports far outstripped the exports. Moreover, exports declined amid slowing global demand in the backdrop of demand slowdown in the west and in China, the Global Trade Research Initiative (GTRI) said.
“Interestingly, this decrease in exports occurred despite a considerable depreciation in the Indian Rupee (INR) against the US Dollar (USD). Over the span of one year, the average INR/USD exchange rate had depreciated from 77.5 in June 2022 to 82.1 in June 2023. Normally, a weaker domestic currency can boost exports by making a country’s products more competitive in the global market. However, in India’s case, the depreciation of the INR did not translate into increased export volumes,” the think tank said.
Notably, India’s efforts to push for local production and cut reliance on Chinese items has shown results in the electronic manufacturing sector.
The imports of finished electronic products like computers, laptops, and other hardware showed a decline, dropping from $15.4 billion to $13.8 billion, a decrease of 10.3 per cent. Imports of electronic instruments also reduced slightly from $10.4 billion to $10.1 billion, a 2.3 per cent decline.
These trends indicate the early successes of India’s Production-Linked Incentive (PLI) scheme, which aims to boost domestic manufacturing and reduce dependency on imported electronics. The decrease in imports of finished products and instruments, alongside the growth in exports, especially in smartphones, suggests a strengthening of India’s electronics manufacturing capabilities, GTRI said.
© The Indian Express Pvt Ltd
First uploaded on: 04-01-2024 at 00:12 IST
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