Indian PM Modi’s highly ambitious Make In India Initiative continues to be threatened by imports from China. In a grim report of the Parliamentary Panel, the increasing trade deficit with China was highlighted and concerns over the same were expressed. The report stated that the Indian industries are being hit hard by the Chinese imports hence amplifying the unemployment rates in India.
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The 145th report of the Parliamentary Panel Committee on Commerce was tabled in the upper house of the Indian Parliament on Thursday. The panel stated that while the contribution of the local industries should account for at least 25% of the GDP, imports from China continue to hinder the economic development of India.
The report expressed alarming concerns about domestic industries in India being wiped out due to the large influx of Chinese goods. This also widens the trade deficit between India and China to concerning levels.
The impact of Chinese imports as stated by the Parliamentary Panel Committee on Commerce has been so adverse that many manufacturers have been forced to rather become traders. The report also highlighted the fact that the Narendra Modi government is not doing enough to understand the gravity of the situation and take appropriate measures. The report also underlined the fact that the Chinese goods are triggering an unfair trade disruption.
Modi’s Make In India campaign was launched on September 25, 2014, with the vision to bolster the indigenous manufacturing industry. But this report from the Parliamentary Panel Committee on Commerce tells a different story. Make In India initiative is being hit by Chinese imports and the government is not doing enough about it.
From $38 billion in 2007-2008, India’s bilateral trade with China rose to $89.6 billion in 2017-2018. The trade deficit with China as stated by the Parliamentary Panel Committee on Commerce is $63 billion.
With elections in India coming up next year, can Narendra Modi now brag about the success of the Make In India initiative?