Gujarat's apex body for trade and industry, Gujarat Chamber of Commerce and Industry (GCCI), which had openly called for a boycott of Chinese goods a little over a year ago, has now adopted a more 'diplomatic' or subtle way to reduce the Indian trade and industry's dependence on China.
The trade body is planning to strengthen trade ties with countries that are friendlier to India. GCCI's agreements with South Korea are targeted as a counterweight to China.
GCCI's has objected that to the fact that China is supporting Pakistan in terrorist-related activities against India, acted against India's interest in Nuclear Suppliers Group and preventing India from getting hold of Masood Azhar, mastermind of several terror attacks on Indian soil.
A South Korean delegation will visit GCCI on Tuesday during which a Memorandum of Understanding (MoU) will be signed for cooperation in trade and business. Textile, Steal, skill and innovation. This move is to support South Korea more compared to China. Delegations from China have been trying to increase cooperation but we have said that so long as China continues to support Pakistan, stronger trade relations with GCCI is not possible," GCCI president Shailesh Patwari told DNA.
Businessmen are aware of increased reliance of industries on imports from China. They feel that any move to diversify the sourcing or to create indigenous capacity to produce such goods is always a welcome. "Recently, prices of raw materials for pharmaceuticals imported from China increased by about 30-40%. Such fluctuations are not in the interest of any industry. Therefore, an option could be to diversify the sourcing. In the longer term, we should create this capacity within the country," said Viranchi Shah, chairman of Gujarat chapter of Indian Drug Manufacturers Association (IDMA).
WHERE GUJARAT RELIES HEAVILY ON CHINA
Chemicals and Pharmaceutical are key sectors in the state where the reliance on Chinese imports are crucial. Any disruption in the supply of raw materials can hurt the players severely. Pharmaceutical industry relies upon supply of Active Pharmaceutical Ingredients (APIs) from China. Even in the foundry industry, key raw material and rare earth metals are imported from China.
‘BOYCOTT CHINA’ CAMPAIGNS
Soon after the ‘surgical’ strikes in September 2016, GCCI initiated a campaign to boycott Chinese goods during Diwali. As traders had imported in advance for Diwali, the impact was not that visible immediately.
SISTER STATES
Gujarat and Guangdong had signed a MoU in 2016 as sister states, during which $590 million worth of Chinese investments were announced.
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