A recent update from China’s General Administration of Customs (GAC) has revealed an increasing trend in Indian imports from China, its principal trading partner in goods. The surge follows a noticeable decline in the months of June and July due to the impact of the COVID-19 pandemic.
Decline and Subsequent Rise in Indian Imports from China
India saw a record low in its imports from China in April and May, with an estimated amount of USD 3.2 billion for both months. This coincided with the period of lockdowns caused by the global health crisis. However, figures from June and July reflected a rebound, as imports soared to USD 4.8 billion and USD 5.6 billion respectively, almost equating the pre-lockdown level of USD 5.8 billion in March.
Reason for the Increase in Imports: Medical Supplies
The rise in imports was primarily fueled by the escalated demand for Chinese medical supplies during the pandemic. Despite prevailing anti-China sentiments in India, Chinese mobile phones and electronic gadgets remain popular among Indian online shoppers. As per Amazon Prime Day 2020 sale data, OnePlus, Oppo, Honor under Huawei, and Xiaomi were among the top-selling smartphone brands in the country.
Seven-Month Import Figures and Two-Way Trade
Within the first seven months of 2020, India’s imports from China reached a total of USD 32.2 billion. Despite this, the figure is down by 24.7% year-on-year, mainly because of the significant slump noticed in April and May. The two-way trade between both countries amounted to USD 43.37 billion and showed an advantage in China’s favour. Indian exports were marked at USD 11 billion, showing an increase of 6.7% year-on-year.
China’s Exports and Imports Performance
In July, China’s exports rose by 7.2%, exceeding most predictions, while imports declined by 1.4% year-on-year. The country posted a trade surplus of USD 62.33 billion, surpassing the proposed USD 42 billion. The key reason for the trade surplus was the surge in export of medical equipment and work-from-home supplies required globally due to the pandemic.
Support for Local Entrepreneurs: Amazon’s Initiatives
In a bid to bolster local market and make India less dependent on imports, e-commerce giant, Amazon, has taken initiatives to support local entrepreneurs. These initiatives are Amazon Karigar Store, Saheli Programme, and Amazon Launchpad. The Karigar Store, launched in 2019, lists more than 55,000 products, including over 270 arts and crafts from 20 states. The Saheli Programme, launched in 2017 aims to empower women entrepreneurs in India. The Amazon Launchpad is a unique marketplace that supports startups by providing visibility for their products and adequate business guidance.
The Significance of Boosting Local Market
In light of the ongoing pandemic and the intensifying India-China discord, enhancing the local market and reducing dependence on imports is crucial. Encouraging local entrepreneurs and talents will not only render their professions profitable but also ensure a better lifestyle for them. Additionally, the country stands to gain from a strong domestic market and reduced importation, thus fortifying its economy. This supportive stance towards local enterprises can contribute significantly towards creating self-reliance and stability in these trying times.
