The economic challenge in decoupling from China
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sinbad

08/06/2020, 03:17:02




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https://www.hindustantimes.com/analysis/the-economic-challenge-in-decoupling-from-china-opinion/story-EfCBUbAOkmX9J1xpOJZErO.html

 

Only a carefully-calibrated industrial policy can reduce dependence on China

 

Although there is a common perception that large volumes of consumer electronic products are sourced from China, the fact that 82% of colour TV sets imported into the country in 2018-19 were from this country will come as a surprise to many. Further, 80% of optical fibres and 92% of personal computers were imported from China in 2018-19.

The dependence on China is even worse in the case of APIs. Among the medicines whose APIs are imported is paracetamol, an essential medicine in the first aid kit of every household. In 2018-19, the entire stock of imports of this medicine came from China. The same was the case with streptomycin, an antibiotic used for treating several bacterial infections, including tuberculosis. Besides these medicines, China was the source of 95% of imports of APIs for penicillin and 98% for ibuprofen, a common medicine used for treating pain, fever and inflammation of various kinds, including arthritis. The APIs of many other critical medicines are also sourced from China.

The list of industries which depend on China for their essential supplies is fairly long, but there are two that are important. The first is the motorcycle industry, which, in 2018-19, sourced 85% of its imports of parts and components from China. While most motorcycle components are obtained locally, the industry imports critical parts such as wheel rims from China. India is also heavily dependent on China for solar photovoltaic cells, which are expected to be the lifeline of the energy sector as the country seeks greener options.





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