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- Two-way trade between India and China was worth $88 billion in the fiscal year to March 2019
NEW DELHI: A boycott of goods from China may not be feasible in India as it is dependent on such imports, although New Delhi should try to cut its dependence on them, the country鈥檚 top export promotion grouping said on Thursday.
As calls have grown in India for Chinese products to be shunned after the recent border clash between the neighbors killed 20 Indian soldiers, customs officials at the key port of Chennai have held shipments originating from China for extra checks.
鈥淲e extend our support to the government to make India self-reliant in the face of the recent tiff with China, but we should also keep in mind that we depend on China for a lot of key raw materials,鈥� said Sharad Kumar Saraf, the president of the Federation of Indian Export Organizations (FIEO). The government should ask Indians to stop buying Chinese items that are also made by Indian companies, but a ban or boycott of all Chinese products would hurt Indian manufacturers, Saraf told reporters.
Greater scrutiny of shipments from China at the southern port of Chennai, one of India鈥檚 biggest, handling cargo ranging from automobiles and auto components to fertilizer and petroleum products, could disrupt supply chains.
Prime Minister Narendra Modi has been vocal about promoting domestic manufacturing and protecting small firms. Last month Modi launched 鈥淎tmanirbhar Bharat,鈥� a campaign for a self-reliant India, in addition to his 鈥淢ake in India鈥� program.
鈥淥ur companies import a lot of raw materials that are critical for making the goods that we export,鈥� said Ajay Sahai, the director general of FIEO.
鈥淲e should avoid a knee-jerk reaction.鈥�
Two-way trade was worth $88 billion in the fiscal year to March 2019, with a deficit of $53.5 billion in China鈥檚 favor, India鈥檚 widest with any country.
The most recent data shows India鈥檚 trade deficit with China was $46.8 billion between April 2019 and February 2020.