A review of the huge imports of Chinese electronics and information technology has been started by the Indian government amid concerns due to security and data leakages.
There has been a growing clamor for import restrictions and other curbs on such products, which currently constitute a huge chunk of shipments from across the border. The review comes at a time when the India – China standoff over Doklam has been intensifying, and may signal the onset of a strategic trade war as tension on the border worsens and concerns about trade imbalances and security increase.
The huge volume of trade with the rising superpower has alarmed the Indian government of possibilities of China gaining access to critical information infrastructure of businesses and government setups, apart from data of individuals.
IT and law minister Ravi Shankar Prasad recently held a top-level meeting to assess the situation with regard to the Chinese engagement in India’s electronics and IT sector, according to sources. Prasad is understood to have asked ministry officials to make an assessment of India’s vulnerability when it comes to goods from China.
Chinese companies have become almost a backbone to India’s massive requirements in the manufacturing of electronics, especially when a large part of the critical components and finished goods are imported. These include components for products such as mobile phones, medical equipment, telecom network gear and devices and sensors linked to the Internet of Things (IoT). Also, major Chinese companies hold substantial stakes in some of the country’s largest online marketplaces.
India’s large and uneasy trade imbalance with China is another trigger for the exercise. It is felt the government should focus, “and insist”, on faster indigenisation to tackle the issue. India had a trade deficit of nearly $52 billion with China last fiscal, and the country is now seeking greater market access in the neighbouring country for its products and services.
By Baishakhi Dutta
