Industry shows willingness to join ‘Atmanirbhar Bharat’ slogan, shift dependence on China

Tribune News Service

New Delhi, July 19

An industry survey has shown that several sectors are willing to join the ‘Atmanirbhar Bharat’ slogan that envisages products imported from abroad are locally manufactured and exported.

After the Prime Minister’s exhortation on June 11 to the industry to focus on indigenous production and the Galwan Valley clash on June 15, which soured trade ties with China, certain sectors such as automotive, textiles machinery and leather are looking at alternative sources of inputs and raw materials, reads a FICCI survey released on Sunday.

Around half of the respondents from the automotive sector, which was the worst hit in the April-June quarter, indicated they are planning to “reduce dependence on one country”.

Over a quarter of this sector’s imports, estimated at Rs 30,000 crore, come from China.

The willingness to shift is likely to be higher once the government completes the exercise of curbing imports of 1,173 non-essential products from China such as toys, plastics, electronics and auto components for vehicle manufacturing. So far, two-thirds of respondents from electronics and electricals are unwilling to change their input sourcing strategies. Imports by this segment from China average Rs. 90,000 crore every year.

But half of the respondents from the leather and textile sectors were preparing to change their raw material import strategy. These sectors were among the worst hit in the April-June quarter and immediate prospects of revival look bleak, said the survey. Footwear and leather imports are estimated at Rs 5,000 crore annually.