In a surprise move, India’s Minister for Commerce and Industry, Suresh Prabhu, has announced a major policy shift to make India economically independent from China. In a policy speech planned for tomorrow, Shri Prabhu is expected to announce a series of directives and investments that will help India reduce its dependence on the Chinese market.
The move follows months of tension between the two countries and a raft of protests from local traders against Chinese goods and services. The aim of the policy speech, according to sources, is to provide incentives to local businesses by offering them new tax credits, access to capital, and a variety of other benefits, all part of a new framework designed to make India self-reliant financially.
Under the new plan, India’s ministry will focus on creating a robust ecosystem to support indigenous entrepreneurs, and also on encouraging more start-ups, as it pushes to reduce reliance on Chinese imports. India’s push for economic independence will provide local industry the opportunity to develop and expand in the domestic market, while also establishing itself as a major global innovator in key technologies, such as AI, IoT, and 5G.
The policy speech is expected to provide more specifics on how India plans to achieve economic independence from China, which include developing an early alert system to counter predatory practices, and putting stronger anti-dumping measures in place for local producers. It is also likely to touch upon initiatives aimed at helping local businesses to stand on their own feet and, more importantly, to have their own voice and representation in global markets.
The initiative is likely to receive criticism from some quarters due to its perceived protectionist nature. However, Shri Prabhu is of the view that such measures, though initially possibly disruptive on some levels, will not only create India’s long-term economic independence, but also lay a firm foundation for sustaining it. With the impending policy speech, India is clearly sending a strong signal that it is no longer content to be a part of the Chinese supply chain.