India Seeks to Reduce Reliance on China for Supply Chains

India devising strategy to reduce reliance on China for supply chains, with Niti Aayog tasked to formulate plan
Focus on lowering trade deficit with China over time and safeguarding supply chains against geopolitical risks
In light of Covid-19, exploring options like nearshoring, friendshoring, localisation to minimize vulnerabilities
Niti Aayog to recommend policy interventions like tariffs, regulatory changes to achieve objectives
Consultancy firm engaged to review India-China trade and supply chains
Trade study to analyze dependency, compare with other Asian nations, identify India's competitive advantages
Recommendations on attracting foreign investment, utilising domestic manpower for competitive products
China accounted for 32% of India's trade deficit in 2022-23 financial year
India mainly imports capital, intermediate, consumer goods from China; exports intermediate goods and raw materials