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As
calls have grown in India for Chinese products to be shunned
after a border clash between the neighbours killed 20 Indian
soldiers, customs officials at the key port of Chennai have held
shipments originating from China for extra checks.
"We 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," said Sharad Kumar Saraf, president of the
Federation of Indian Export Organisations (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's biggest, handling cargo ranging from
automobiles and auto components to fertiliser 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 "Atmanirbhar Bharat", a campaign for a
self-reliant India, in addition to his "Make in India" programme.
"Our companies import a lot of raw materials that are critical
for making the goods that we export," said Ajay Sahai, director
general of FIEO.
"We should avoid a knee-jerk reaction."
Two-way trade was worth $88 billion in the fiscal year to March
2019, with a deficit of $53.5 billion in China’s favour, India's
widest with any country.
The most recent data shows India's trade deficit with China was
$46.8 billion between April 2019 and February 2020.
(Additional reporting by Manoj Kumar; Editing by Clarence
Fernandez)
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