Rising Imports from China

• 11 Aug 2020

Why in News

According to the latest figures from China’s General Administration of Customs (GAC), Indian imports from China, its largest trading partner in goods, are on a rise after the months of June and July.

Key Points

• India’s imports from China had fallen to a record low of USD 3.2 billion both in the months of April and May, coinciding with the pandemic induced lockdowns.
• Imports subsequently rose to USD 4.8 billion in June and further to USD 5.6 billion in July, almost back to the pre-lockdown level of USD 5.8 billion reported in March.
  
  • It was mainly due to increased import of Chinese medical supplies.
  • Online shoppers in India seem to prefer Chinese mobile phones and electronic gadgets despite the environment of anti-China sentiments in the nation.
    
    • As per the Prime Day 2020 sale data of Amazon, an e-commerce giant, OnePlus, Oppo, Huawei’s Honor and Xiaomi were among the top-selling smartphone brands in India.
• For the seven months of 2020, India’s imports from China have reached USD 32.2 billion. However, It is still down by 24.7% year-on-year, mainly because of the record slump in April and May.
• Two-way trade between both countries is USD 43.37 billion and it continues to be heavily tilted in China’s favour. Indian exports account for USD 11 billion and are up 6.7% year-on-year.
• China’s exports overall rose 7.2% in July, beating most estimates, while imports fell 1.4% year-on-year.
• China noticed a trade surplus of USD 62.33 billion, surpassing the estimated USD 42 billion.
  
  • The major reason behind this was the increased export of medical supplies and work-from-home equipment.

Initiatives to Support Local Entrepreneurs

• Amazon Karigar Store:
  
  • In 2019, on the eve of the National Handloom Day (7^th August), Amazon announced the launch of the Karigar store which showcases over 55,000 products, including more than 270 arts and crafts from 20 states.
  • It will give prominence to India’s handicrafts heritage by enabling weavers and artisans to showcase ‘Made in India’ products to customers.
• Saheli Programme:
  
  • In November 2017, Amazon launched this programme with the aim to empower and enable Indian women entrepreneurs to sell their products across the country.
  • Promotion of entrepreneurship amongst women has become the key motive of the programme.
  • It was rolled out in partnership with non-government social service entities like Self-Employed Women Enterprise (SEWA) and Impulse Social Enterprise.
• Amazon Launchpad:
  
  • It is a marketplace within a marketplace as it works on two levels to create value for both Amazon shoppers and up-and-coming brands.
  • New companies get the time and guidance they need to fine-tune their business and generate greater visibility for their products while shoppers enjoy early access to innovative products from the latest startups.
    
    • Since startups tend to have limited time and resources, they often need additional support to drive traffic to their products and get their business off the ground.
• Significance:
  
  • In the wake of the Covid-19 pandemic and the growing tensions between India and China, it is important to boost the local market and make the economy less dependent on imports.
  • By boosting up the local entrepreneurs and talent, their professions will become more profitable enabling them to have a better life.
  • The country will also profit from it by the reduced imports and a strong sustainable domestic market, strengthening the economy.

Source: TH