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        Customs, DGFT & SEZ

        Assessment of Disruption of Imports from China

        September 23, 2020

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        Government has banned certain apps in June 2020 and September 2020 on concerns of security and to ensure safety and sovereignty of the Indian cyberspace.  Many apps are available on each of the popular playstore namely Google Play Store and Apple Store including competing apps with similar functionalities. Government of India has also launched Digital India AatmaNirbhar Bharat Innovate Challenge to give a push to Indian App ecosystem through short listing of the top Indian Apps that have the potential to become global competitors in their respective categories.

        Due to the impact of COVID-19 pandemic there were several global and domestic supply side constraints and also a dip in global demand. India’s imports from China during April-July 2020 decreased to USD 16.60 billion from USD 23.45 billion in the corresponding period of the previous year i.e April-July 2019. The details of the imports of Top 50 commodities from China in April-July 2020 compared to April-July 2019 are given at Annexure. Some of the items exhibiting decline in imports include electronic components, telecom instruments, computer hardware, industrial machinery for dairy, electric machinery, residual chemical and allied products, consumer electronics, electronic instruments, fertilisers, products of iron & steel etc.

        To minimise the impact of such disruptions, Government has taken steps to expand domestic capacities and has implemented policies to promote domestic manufacturing through ease of doing business and Production Linked Incentives (PLIs) in select sectors including mobile phones & electronic components and medical devices & bulk drugs. Government has also sensitized stakeholders to source critical imports from diversified sources through the active support of our missions.

        The full impact of these measures on the industry will be discernible as the global economy recovers, and revives from the recessionary affects of the pandemic.

        Annexure

        India’s top 50 Import of Principal Commodity Groups from China, during April- July, 2019 and April- July 2020

        RANK

        COMMODITY GROUPS

        2019-20 (APR-JUL)

        2020-21 (APR-JUL)

        IMPORT FROM CHINA

         IMPORT FROM CHINA

        VAL (MILL US $)

        VAL (MILL US $)

        1

        ELECTRONICS COMPONENTS

        2029.44

        1156.15

        2

        TELECOM INSTRUMENTS

        1850.10

        1509.13

        3

        COMPUTER HARDWARE, PERIPHERALS

        1589.51

        1395.34

        4

        INDL. MACHNRY FOR DAIRY ETC

        1423.96

        931.77

        5

        ORGANIC CHEMICALS

        1248.71

        1069.92

        6

        ELECTRIC MACHINERY AND EQUIPME

        916.61

        497.50

        7

        RESIDUL CHEMICL AND ALLED PROD

        906.74

        857.36

        8

        BULK DRUGS, DRUG INTERMEDIATES

        860.85

        859.66

        9

        ELECTRONICS INSTRUMENTS

        801.71

        706.72

        10

        CONSUMER ELECTRONICS

        680.02

        473.76

        11

        FERTILEZERS MANUFACTURED

        581.24

        361.20

        12

        AC, REFRIGERATION MACHNRY ETC

        589.52

        379.40

        13

        PRODUCTS OF IRON AND STEEL

        600.90

        385.43

        14

        PLASTIC RAW MATERIALS

        521.71

        272.91

        15

        AUTO COMPONENTS/PARTS

        424.32

        246.33

        16

        IRON AND STEEL

        438.68

        309.22

        17

        MANMADE YARN,FABRICS,MADEUPS

        379.03

        185.57

        18

        OTHER MISC. ENGINEERING ITEMS

        373.00

        214.88

        19

        ALUMINIUM, PRODUCTS OF ALUMINM

        408.77

        174.29

        20

        OTHER COMMODITIES

        339.45

        203.27

        21

        ACCUMULATORS AND BATTERIES

        329.55

        140.66

        22

        PLASTC SHT, FILM, PLTS ETC

        287.50

        145.95

        23

        MACHINE TOOLS

        259.52

        153.80

        24

        GLASS AND GLASSWARE

        266.51

        129.06

        25

        AGRO CHEMICALS

        321.43

        377.65

        26

        CRANES, LIFTS AND WINCHES

        200.29

        189.18

        27

        INORGANIC CHEMICALS

        248.01

        164.56

        28

        MEDICAL AND SCIENTIFIC INSTRUM

        200.53

        205.64

        29

        OTH NON FEROUS METAL AND PRODC

        199.40

        112.80

        30

        OTHER CONSTRUCTION MACHINERY

        196.83

        149.79

        31

        MOULDED AND EXTRUDED GOODS

        191.43

        108.82

        32

        OTHER PLASTIC ITEMS

        204.52

        66.76

        33

        OTHER MISCELLAENIOUS CHEMICALS

        212.37

        240.96

        34

        PAPER, PAPER BOARD AND PRODUCT

        208.02

        101.74

        35

        OTH TXTL YRN, FBRIC MDUP ARTCL

        180.72

        78.69

        36

        CERAMICS AND ALLIED PRODUCTS

        165.58

        97.36

        37

        PROJECT GOODS

        153.30

        107.10

        38

        HANDCRFS(EXCL.HANDMADE CRPTS)

        156.28

        168.08

        39

        PAINT, VARNISH AND ALLID PRODC

        148.74

        110.66

        40

        PETROLEUM PRODUCTS

        60.58

        68.83

        41

        HND TOOL, CTTNG TOOL OF METALS

        113.69

        79.47

        42

        ATM, INJCTNG MLDING MCHNRY ETC

        118.77

        69.71

        43

        PLYWOOD AND ALLIED PRODUCTS

        90.05

        39.03

        44

        IC ENGINES AND PARTS

        89.57

        58.78

        45

        COTTON FABRICS, MADEUPS ETC.

        83.88

        32.34

        46

        PUMPS OF ALL TYPES

        70.75

        54.97

        47

        RAILWY TRNSPRT EQUIPMNTS, PRTS

        76.36

        57.98

        48

        PRIME MICA AND MICA PRODUCTS

        66.08

        37.97

        49

        FOOTWEAR OF RUBBER/CANVAS ETC.

        66.02

        22.24

        50

        DYE INTERMEDIATES

        77.26

        47.14

        Total IMPORT of 50 Commodities

        22007.79

        15607.52

        TOTAL IMPORT

        23452.75

        16600.74

        Note: Figures pertaining to FY:2020-21, are provisional and subject to change        

           Source: DGCIS

        This information was given by the Union Minister of Commerce and Industry, Shri Piyush Goyal, in a written reply in the Rajya Sabha today.

        Import disruption from a key trading partner spurred policy push for domestic manufacturing and supplier diversification measures. Governmental bans on certain mobile applications for cybersecurity and measures to promote indigenous apps accompany a substantial year on year decline in imports from a principal trading partner for April-July 2020 across multiple commodity groups. The release records reduced imports in electronics, telecom, computer hardware, machinery, chemicals, consumer electronics and iron & steel, and sets out mitigation measures emphasising domestic capacity expansion, ease of doing business reforms and targeted Production Linked Incentives, while urging supplier diversification and noting figures are provisional.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Import disruption from a key trading partner spurred policy push for domestic manufacturing and supplier diversification measures.

                                Governmental bans on certain mobile applications for cybersecurity and measures to promote indigenous apps accompany a substantial year on year decline in imports from a principal trading partner for April-July 2020 across multiple commodity groups. The release records reduced imports in electronics, telecom, computer hardware, machinery, chemicals, consumer electronics and iron & steel, and sets out mitigation measures emphasising domestic capacity expansion, ease of doing business reforms and targeted Production Linked Incentives, while urging supplier diversification and noting figures are provisional.





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                                ActsIncome Tax
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