Chinese government's export ban is taking a heavy toll on India, these things can have a direct impact

New Delhi : India's research agency GTRI has said a big thing about sugar exports. It is being told that Indian companies in the electronics, solar and electric vehicles i.e. EV sector may face delays due to China's ban on export of key raw materials and machinery and may also have to face other problems. Economic Research Institute GTRI said on Thursday that this ban could be a reaction to the ban imposed by India on Chinese investment and visas.

Ajay Srivastava, founder of Global Trade Research Initiative i.e. GTRI, has said that this also indicates increasing geopolitical tension and trade war. We hope that the India related ban will be lifted soon, because it will also harm China. He said that these affect India's electronics, solar and EV sectors, but they are also harmful for China's own manufacturing and exports.

facing disruption

GTRI has said that Indian companies in the electronics, solar and EV sectors are facing delays and disruptions as China is blocking exports of raw materials and machinery. He said that India should remain strong against China's unreasonable demand and focus on diversifying the production and supply chain of local manufacturing capacity.

Sensitive to export ban

Srivastava has said that India is especially sensitive to China's export ban because many of its industries depend on Chinese machinery, intermediate goods and components. India's imports from China increased to US $ 101.73 billion in 2023-24, from $ 98.5 billion in 2022-23. In 2020, the government had made it mandatory for countries sharing land borders with India to seek its approval for investment in any sector.

export restrictions on equipment

He said India should also strengthen partnerships with Japan and South Korea to source high-quality components for electronics, solar energy and EVs. Engaging with these countries will help India reduce its dependence on China and create a more flexible supply chain. It is noteworthy that amid the possibility of newly elected US President Donald Trump imposing new tariffs on China, China has imposed export restrictions on important minerals and high-tech equipment.

(with agency input)

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