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Can India boycott Chinese goods?
Contrary to the demand
for boycott of Chinese goods, India’s imports from China have seen a sharp
increase post the Galwan China’s clashes in 2020. Further the economic slowdown
in China has reduced its import from India. The January-August 2022 trade data
confirms this trend. An unfriendly neighbour challenges the Indian government in terms of its
political and security scenarios that may play out in the times to come. India is
dependent on imports of critical products and services from China. In 2018-19,
92% of import of rare earth metal by value and 97% by quantity were sourced
from China.
Other bulk commodities
that India purchases from China include electrical machinery and equipment’s,
laptops, nuclear reactors, boilers, organic chemicals, fertilisers, monolithic
integrated circuits-digital, lithium-ion, solar cells, urea, etc. On the other
hand, in 2021-22, India’s exports to China were only 5% of its total shipments.
The most exported commodities included ores, slag and ash, organic chemicals,
mineral fuels/oils, bituminous substances, iron, steel, aluminium etc. Light
Naphtha was India’s most valued export.
Critical minerals are mooted
as a new base for US-India multilateral collaboration, visible in the “Quad
critical and Emerging Technology Working group”, that aims to develop supply
resilience among Quad members.
The focus on critical
minerals supply chain started after the China-Japan Senkaku-Diaoyu island
dispute (2010), followed by a rare-earth embargo imposed by China. US, European
Union and Japan are the major importers of rare earths. Due to this the US
House of Representatives passed H.R. 761 which declared rare earths an essential
for economic growth and national security.
To read the entire article, kindly click on the link below:
https://timesofindia.indiatimes.com/blogs/adi-bytes/can-india-boycott-chinese-goods/