Edited by Deepali Verma
External Affairs Minister S Jaishankar called for an increased use of locally manufactured products by Bharatiya consumers at a time when cheap and highly subsidised imported items are “invading” Bharatiya market.
Bharat is trying to curb cheap quality imports from countries such as China by employing several policy measures including quality control orders (QCOs). China continues to be Bharat’s top import source with imports recording a 4 per cent jump to a record $98.51 billion in FY23. While Bharat is dependent on imports of several items such as Active Pharmaceutical Ingredients (APIs), trade with China lacks transparency. China’s exports to Bharat have risen consistently. However, Bharat’s export to China is put through multiple non-tariff barriers resulting in a sharp decline over the years.
“There is a danger of cheap goods or subsidised goods invading our markets. Therefore, we have to instil pride in the producer as well as in the consumer. We must consciously say that we should make in Bharat and buy what is made in Bharat,” Jaishankar remarked at the ‘Aatmanirbhar Bharat Utsav Celebration’ organised at Bharat Mandapam.
The importance of One District-One Product (ODOP), lies in the selection, branding, and promotion of at least one product from each district. The minister stated, “ODOP is part of our personality and it is very important because in the era of globalisation, various societies and cultures begin to lose their identity and personality”.
Meanwhile, the commerce minister Piyush Goyal remarked that Bharat is not anti-imports.
“The idea is not to close our doors or imply that imports are bad. We are not anti-import. Atmanirbhar Bharat means we will boost our exports and for that if there is a need to import, we will not stop those. We will leave Bharat’s impression on the cost, competition and quality front,” Goyal said.
The year 2023 saw Bharat’s goods imports far outstrip the exports. Moreover, exports noted a decline amid slowing global demand owing to the backdrop of demand slowdown in the west and in China, the Global Trade Research Initiative (GTRI) said.
“Interestingly, this decrease in exports occurred despite a considerable depreciation in the Indian Rupee (INR) against the US Dollar (USD). Over the course of a year, the average INR/USD exchange rate had depreciated from 77.5 in June 2022 to 82.1 in June 2023. Normally, a weaker domestic currency can enhance exports by making a country’s products more competitive in the global market. However, in Bharat’s case, the depreciation of the INR did not transform into an increased export volume,” the think tank said.
Bharat’s efforts to push for local production and cut reliance on Chinese items has seen notable results in the electronic manufacturing sector. The imports of finished electronic products such as computers, laptops and other hardware showed a decline, dropping from $15.4 billion to $13.8 billion noting a decrease of 10.3 per cent. Imports of electronic instruments also indicate a slight reduction from $10.4 billion to $10.1 billion, a 2.3 per cent decline.
These trends indicate the early successes of Bharat’s Production-Linked Incentive (PLI) scheme that aims to boost domestic manufacturing and reduce the dependency on imported electronics.
