Indian traders, who have been largely dependent on China for supply of products, are now warming up to Vietnam, Taiwan and South Korea. So soon, instead of ‘Made in China,’ your home could be full of goods sourced from these countries.
While the thrust will be to boost supply of Indian goods under the ‘Vocal for Local’ scheme, traders said a large number of household, electronic, electrical items will be sourced from these countries. Besides, iron and steel and raw materials required for the construction as well as other critical industries including automobiles could come from these countries.
The Confederation of All India Traders (Cait) said that traders have already initiated talks with local producers and exporters in these countries. “There has been a shift in consumer behavior. Till a few months ago, our consumers were keen on Chinese goods but after the outbreak of the coronavirus and the subsequent clash at Galwan Valley, sentiments have changed. Now neither the traders nor the consumers want Chinese products,” Cait secretary general Praveen Khandelwal told IN.
For these countries, having an access to the large Indian market would be “hugely beneficial.”
Even before the outbreak of the pandemic, Taiwan has been looking at India as a potential business destination. India too has shown its keenness to expand trade relations with Taiwan besides Vietnam and South Korea.
Khandelwal said that in terms of pricing, goods from these countries could be as competitive or a tad dearer considering the quality of the products.
The Observer Research Foundation (ORF) said that the time was right to reset India-Taiwan relationship. “India and Taiwan are natural allies in many respects: both share democratic values, uphold human rights and the rule of law, and recognize the benefits of a rules-based international order. But since the outbreak of Covid-19 in January, growing commonalities between the two states afford opportunities for India and Taiwan to forge closer ties to their mutual benefit,” an ORF report said.
India recorded an overall trade deficit of Rs 152.88 billion in 2019-20 compared to Rs 184 billion in 2018-19.
Meanwhile the Narendra Modi government, which has started work on the new foreign trade policy, is unlikely to put any unnecessary restrictions on imports, sources said. The focus will be on pushing the domestic manufacturing sector.
According to official data, India’s share in global exports for merchandise was 1.7 per cent in 2018. The focus in the new policy will be to take it to double digits. “The idea is to improve manufacturing but not restrict imports,” a trade expert said.
Until now, China, with about 17 per cent share in global trade, has been the world’s largest supplier of goods. However, the dragon’s share has fallen in the last couple of years as it has been entangled in a bitter trade war with the US..
