Auto, pharma ind: Chinese imports are here to stay

Imports from China are expected to continue for the time being till other feasible and cost effective alternatives emerge, according to players in Indian automobile and pharmaceutical industries.

Days after a deadly border clash with China that saw 20 Indian soldiers losing their lives, there has been a call from various quarters to cut imports from the neighbouring country. Indian auto and pharma industries import several critical components and raw materials from China.

Currently, companies based out of China continue to be the leading suppliers of automotive components for the domestic industry. In 2018-19, India imported auto components worth USD 17.6 billion, of which 27% -- USD 4.75 billion -- were from China.

Explaining the rationale behind the imports from China, Maruti Suzuki India Chairman R C Bhargava told PTI that the reason is "either the product is not made in India, not available or what is made in India does not provide the desired quality, or the product made in India is too expensive".

When asked in today's circumstances, if importing components from China is inevitable, he said, "Yes, unless we can find alternative sources of imports and which do not raise the prices to a level that consumers get hurt".

Bhargava further said: "Remember the price of imports, ultimately who pays for it? Consumers. So, the same people who are boycotting have to remember that in some cases it may lead to their being asked to pay more for the same product".

Similarly, Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta said the industry has started to take steps towards "deep localisation" in order to de-risk business from Chinese imports.

"There is no denying that the industry needs to be 'Atma-Nirbhar' and the industry and the government should together define a roadmap and deliver accordingly," he noted.