Need calibrated call in reducing import dependence from China: SBI Ecowrap
India needs to take a calibrated call in reducing import dependence from China and not through sudden stops.
 
At present, a huge clamour has grown about banning imports from China, after the border standoff. 
 
According to the SBI Ecowrap report, India must go for imposing restrictions on certain products in which it has a revealed comparative advantage over China, and which will provide support to the country's MSMEs. 
 
"However, demanding to curtail all imports at one go from a country which is so entrenched in our economic system is unreasonable and might disrupt the local supply chain when looked at, either from the producers' side or consumers' side," the report said.
 
Accordingly, the report cited that India is dependent on China for a lot of products at the lower end of manufacturing. 
 
In FY97, at 2 digit classification basis, there were 22 categories in which India did not import any- thing from China, whose value of imports in FY20 is around $500 million. 
 
"In principle, China has spread out in all other categories, including low value manufacturing to high value capital and electrical goods," the report said.
 
"Although value wise the import is miniscule in the categories in which China has started importing over the years, these are some labour intensive and small scale industries like, prepared products of vegetables, fruits, cereals, flour, meat and fish, products of milling industry, wood and articles of wood, headgear and parts."
 
As per the report, utmost caution has to be exercised to see that the rights of consumers in the form of variety of choice are protected, while making sure that China does not eat away the local industries which can easily build capabilities in these areas, so that India does not have to import these products.
 
Besides, the report pointed out that China's biggest capabilities also lie in capital goods and high value consumer goods export and in case of India too China's machinery and electronics imports dwarf the rest of the industries. 
 
"When we sum the 84 and 85 HS Classifications', they accounted for 49.7 per cent of the total imports from China in FY20,a the report said.
 
"This share was just 14 per cent in FY97. The sudden spike came in FY 03, when the share went from 24.8 per cent to in the previous fiscal to 35.3 per cent. The growth rate of these imports was an astonishing 94.6 per cent for FY03. The time period from FY03 to FY08, saw more than 60 per cent increase every year in these imports, helping China slowly and steadily build a solid base in machinery and electronics imports in India."
 
Nevertheless, the report mentions that beginning FY08 the growth rate has moderated. 
 
"However, some years have seen sudden jumps in growth rate. But these are not as high as the period mentioned before. In fact FY19 saw the highest decline of 19.4 per cent in imports of these commodities," the re port said.
 
"FY20 data also shows negative growth rate. However, for India to make a significant dent, it will have to substantially bring down these imports over the years. Given the productive nature of capital and electronic goods, the decline in these imports has to be gradual as India builds domestic capacity to fulfill the needs of domestic population, as well as meet export demand."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User 

    LG Polymers MD & CEO Sunkey Jeong, 11 others arrested for Vizag gas leak
    LG Polymers Managing Director and CEO, Sunkey Jeong and Technical Director D.S. Kim were among 12 officials of the company arrested by Visakhapatnam police on Tuesday, in connection with the styrene gas leak tragedy that left 15 dead and hundreds hospitalised in May this year.
     
    Assistant Commissioner of Police, R.V.S.N. Murthy, who is also the investigation officer, said the accused were booked for culpable homicide not amounting to murder.
     
    They were also booked under Indian Penal Code's Sections 278 (Making atmosphere noxious to health), 284 (Negligent conduct with respect to poisonous substance), 285 (Negligent conduct with respect to fire or combustible matter), 337 (Causing hurt by act endangering life or personal safety of others), 338 (Causing grievous hurt by act endangering life or personal safety of others) read with section 34 (Acts done by several persons in furtherance of common intention).
     
    The gas leak from LG Polymers plant on the intervening night of May 6 and 7 affected Venkatapuram and five other villages.
     
    According to police, while 12 people died on May 7 and 8, three more villagers succumbed on May 25 and afterwards. A total of 34 animals also died in the incident.
     
    The development comes a day after the High Powered Committee (HPC) submitted its probe report to Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy.
     
    The HPC probe report had listed several lapses on the part of the LG Polymers management, which led to the styrene gas leakage.
     
    The other accused arrested on Tuesday are LG Polymers' and Additional Director (Operations) P.P. Chandra Mohan Rao, HOD, SMH (in-charge) K. Srinivas Kiran Kumar, team leader production Raju Satyanarayana, engineers C. Chandrasekhar, K. Gowri Sankara Nagendra Ramu, K. Chakrapani, operator Muddu Rajesh, night duty officer (operations) P. Balaji, incharge GPPS S. Atchyut and safety officer in night shift K. Venkata Narasimha Ramesh Patnaik.
     
    According to the investigating official, the investigations disclosed that the incident at M6 styrene storage tank took place due to negligence of the accused who were also having knowledge that their acts are likely to cause death.
     
    "The investigations so far made disclosed that the accident occurred to the poor design of M6 Tank, inadequate refrigeration and cooling system, absence of circulation systems, inadequate measurement parameters, weak safety protocol, poor safety awareness, inadequate risk assessment and response, poor management, slackness of management, insufficient knowledge amongst staff, insufficient understanding of the chemical properties of styrene, especially during storage under idle conditions and total breakdown of the emergency response procedures," the police said. 
     
    Meanwhile, in a related development in the case, the Andhra Pradesh Pollution Control Board (APPCB) suspended environmental engineers R. Lakshmi Naryana and P. Prasada Rao for negligence.
     
    Acting on the report of the HPC, APPCB suspended Prasada Rao, environmental engineer, regional office, Visakhapatnam, for gross negligence in allowing operation of LG Polymers without environmental clearance, allowing import and storage of huge quantity of styrene without verifying safety and environmental issues. Lakshmi Narayana, environmental engineer, zonal office, Visakhapatnam, was also suspended on the same charges.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User 

    COMMENTS

    mywopy

    4 weeks ago

    An Indian's life is valuable too.

    Glad the authorities stood up to bring justice for the lives lost due to negligence.

    Let them now sleep in peace.

    SC grants interim bail to Unitech's Sanjay Chandra, no to brother
    The Supreme Court on Tuesday granted interim bail to Unitech Ltd promoter and former Managing Director Sanjay Chandra, who has been behind bars for nearly three years in the homebuyers' case.
     
    A bench headed by Justice DY Chandrachud allowed Chandra's release for one month since his parents are not keeping well and are hospitalised. The court was told that Chandra's 78-year-old father is infected with Covid-19 and admitted in ICU.
     
    The bench, while allowing interim bail to Chandra, asked him to withdraw the second plea for regular bail.
     
    The court however declined bail to Chandra's younger brother, who is also in jail in the case involving alleged siphoning of money paid by homebuyers in their project.
     
    In 2017, both Chandra and his brother Ajay were sent to jail in a cheating case registered against them by investors in Anthea and Wild Flower Country housing projects.
     
    In 2015, a case was registered based on the complaint of two Delhi residents, who alleged that Unitech convinced them to book a flat at Wild Flowers Country in Gurgaon for Rs 57.34 lakh in August 2011.
     
    On October 30, 2017, the top court had ordered that Sanjay Chandra would get bail only after the real estate group deposited Rs 750 crore with the Registry.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User 

    COMMENTS

    Ramesh Popat

    4 weeks ago

    why tarikh pe tarikh in many such cases? resolution must be
    speedy in all the cases.

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone