NEW DELHI, Jan 30 (Reuters) – India is contemplating various tariffs and non-tariff steps to chop imports of non-essential client and digital items, together with from China, as commerce imbalances concern policymakers, two authorities officers and an trade supply mentioned.

As many as 18 key authorities ministries, led by the federal commerce ministry, met final week to agency up steps first geared toward slicing imports from China, which accounts for practically a 3rd of India’s commerce deficit, mentioned the three sources who declined to be named.

India has been attempting to scale back its commerce deficit with China since 2020, when border tensions flared alongside a contested frontier, however with little success because the nation is a key and low-cost provider of products together with energetic pharmaceutical substances, electrical gear and several other chemical substances.

The commerce hole with China widened 28% in April-December 2022 from the identical interval a yr earlier, as India’s home demand continued to help Chinese imports whereas COVID lockdowns in China crimped imports from India.

The authorities is contemplating ramping up investigations to weed out unfair practices on a “wide array” of imports, from China and elsewhere, one of many officers mentioned, with out specifying which items or what the unfair practices have been.

The trade supply mentioned that thus far this yr anti-dumping investigations have focussed on merchandise reminiscent of printed circuit boards and a kind of toughened glass imported from China.

If a buying and selling accomplice have been discovered to have engaged in unfair practices, it could be essential to introduce safeguards such because the imposition of anti-dumping duties, the official mentioned.

India’s federal commerce ministry and China’s embassy in New Delhi didn’t instantly reply to requests for a remark.

India’s general merchandise exports fell 12% in December from a yr earlier, whereas merchandise imports dropped 3%, widening the deficit by 13%, authorities knowledge confirmed.

The officers mentioned India would additionally intensify checks on imported items to verify they adhere to nationwide high quality requirements, the 2 authorities officers added.

Reuters reported final week that the federal government may spotlight the rising commerce deficit as a significant draw back threat to the Indian economic system in its Economic Survey getting into to the brand new fiscal yr from April 1, Reuters reported final week.

The authorities can be more likely to element a number of the steps to sort out the problem within the Feb. 1 funds.

Reporting by Shivangi Acharya; Editing by Kirsten Donovan

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