India needs a calibrated approach to reduce imports from China as the neighboring country has slowly and steadily built a solid base in both high and low-value imports into the country, a report by SBI said.
The report also said that the decision of the government to ban 59 Chinese apps will provide space to the domestic IT sector to develop its own capabilities.
“Clearly, China has slowly and steadily built a solid base in both high and low-value imports into India.
We thus have to clearly take a calibrated call in reducing our import dependence from China and not through sudden stops!” said the SBI research report – Ecowrap.
The report added that stopping imports at once will affect India’s supply chain. “India must go for imposing restrictions on certain products which will also provide support to MSMEs.”
With its huge IT base, India can focus more on services while building capabilities in goods exports to improve its overall trade balance with China, the report said.
China is already coming under fire due to its aggressive stance and it gives other Asian nations an opportunity to look at the share that China has captured in services exports of telecommunications, computers, and information services, it added.