India plans to step up trade barriers against Chinese products through stricter quality control measures and higher import tariffs, Bloomberg reported, citing people with the knowledge of the matter. The policy came amid rising military tensions in the contested Himalayan border this month.
According to the sources, the state-run Bureau of Indian Standards is formulating more stringent quality requirements to avoid imports of at least 370 items that can be locally produced. Among the products are chemicals, electronics, steel, glass, paper, fertilisers, furniture, pharma, rubber articles, heavy machinery, industrial machinery, metal articles, and plastic toys.
Higher import duty on furniture, auto parts, and air condition compressors is also being discussed. The sources said that the Finance Ministry is currently reviewing the proposal. Separately, the Trade Ministry is evaluating non-tariff barriers to examine Chinese imports. The restrictions can come in forms of enhanced quality certification requirements as well as more product testing and inspections.
India-China trade reached $88 billion in the fiscal year ended March 2019, with India bearing a trade deficit of $53.5 billion, the widest deficit that India had with any trading partner at that fiscal year. The latest data showed that India’s trade deficit with China reached $46.8 billion over April 2019 through February 2020.