Question : DEPENDENCY ON IMPORTS FROM CHINA

(a) whether Government is aware of the increasing dependence of Indian manufacturing industries on the imported Chinese goods and has also taken note of the concern expressed by the National Security Council regarding country’s rising dependence on Chinese goods;

(b) if so, the steps taken / being taken by the Government to make the indigenous industries self-reliant and put an end to the dependency on China;

(c) the percentage of import–export between India and China and the extent of profit being earned by China annually;

(d) whether the Government proposes to increase the duties on import of Chinese goods and raw material in India; and

(e) if so, the details thereof alongwith the steps taken by the Government to check the negative trade balance between India and China?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)

(a) to (e): A Statement containing part-wise reply is enclosed.

Statement

Statement referred to in reply to Lok Sabha Unstarred Question No. 2837 to be answered on 12.12.2011 regarding ‘Dependency on Imports from China’

(a) Government has not made any study regarding dependency of Indian Manufacturing Sector on imports from China. Government, however, has been conscious of widening trade deficit with China.

(b) Government has made concerted efforts to improve the rate of growth of manufacturing sector and making it globally competitive. Some of the measures, which have been taken to improve the competitiveness of domestic industry among others include creation of world class infrastructure; promotion and facilitation of industrial investment including the foreign direct investment, improvement in business environment; development of industry relevant skills etc.

(c) India’s trade with China and its share as percentage to India’s global trade in the current year so far and preceding two years is indicated in the table below:

(in US$ Billion)
World Trade	Trade with China
Year	Export	Import	Trade	Export	Import	Trade	% of	% of	balance	balance	total	total	Indian	Indian	export	import
2009-2010	178.8	288.4	-109.6	11.6	30.8	-19.2	6.5	10.7
2010-2011	252.3	346.9	-94.6	19.4	39.8	-20.5	7.7	11.5
2011-2012	111.2	158.0	-46.8	5.6	18.2	-12.6	5.1	11.5
(Apr-Jul)