Building Atmanirbhar Bharat: Reducing Low-End Imports to Boost Make in India

[YAGAY andSUN]

Building Atmanirbhar Bharat: Reducing Low-End Imports to Boost Make in India.

Our concern touches on a very real issue affecting India's trade balance, manufacturing ecosystem, and strategic autonomy. The import of low-end, often substandard or non-essential goods from China—including toys, cheap electronics, handicrafts, plastic articles, and decorative items—continues despite efforts to promote domestic manufacturing. Let's explore why this is happening and how concrete action can be taken.

🔍 Why Are Indian Traders Importing Low-End Goods from China?

1. Price Advantage: Chinese products are often cheaper due to:
   • Economies of scale
   • Heavy state subsidies
   • Lower labor and compliance costs
   • Aggressive export incentives
2. Lack of Indian Alternatives: In certain segments (e.g., low-cost toys, LED lights, gift items), India lacks competitive local manufacturing due to:
   • Small scale and fragmented MSMEs
   • Lack of automation and technology
   • Inconsistent quality and packaging
3. High Demand During Festivals/Events: Traders import cheap items in bulk during Diwali, Holi, Raksha Bandhan, etc., to meet surging demand with high margins.
4. Weak Enforcement: Despite BIS and DGFT regulations, substandard goods often slip through customs due to inadequate checks or corruption.

✅ Concrete Government Actions to Curb Imports & Promote 'Make in India'

1. DGFT & Customs Reforms

• Negative/Restricted Import List Expansion: DGFT should categorize more low-end Chinese goods under “restricted” or “prohibited” categories, requiring licenses or stricter clearances.
• Mandatory BIS Certification: Extend BIS quality certification to cover all toys, electronics, and handicrafts, not just critical items.
• Red Channel Monitoring: Customs can prioritize red-channel screening for shipments from high-risk countries and ports.
• Country of Origin Declaration (CoO)/Proof of Origin (PoO): Enforce stricter compliance under the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.

2. Taxation and Duties

• Impose Higher Anti-Dumping Duties: Where proven, levy anti-dumping or safeguard duties on low-end Chinese imports.
• Customs Valuation Checks: Prevent under-invoicing of goods, a common practice in bulk shipments from China.

3. Ministry of MSME & DPIIT (Make in India/PLI Schemes)

• Boost Domestic Manufacturing Capacity:
  • Expand PLI schemes to cover segments like toys, small electronics, and handicrafts.
  • Facilitate cluster-based development in states like UP, Rajasthan, and Tamil Nadu.
  • Offer low-cost credit, marketing support, and technology upgradation.
• Ease of Doing Business for MSMEs:
  • Simplify compliance
  • Create access to common tool rooms, testing labs, and skill development centers

4. Consumer Awareness & Social Campaigns

• Launch campaigns to promote Swadeshi or Made in India products, especially around festivals.
• Highlight quality and sustainability aspects of Indian goods.

5. E-Commerce Regulation

• Strictly regulate e-commerce imports of unbranded or non-compliant products from Chinese platforms.
• Ensure online platforms list country of origin and comply with Indian consumer safety norms.

🌱 Way Forward

To effectively reduce reliance on low-quality imports from China, India needs a multi-pronged strategy involving regulation, incentives, consumer awareness, and industrial development. Policymakers must focus not only on restricting imports but also on enabling competitive domestic alternatives.

Here's a comprehensive policy framework and action plan proposal you can share with a trade body, government agency (like DPIIT, DGFT, or Ministry of Commerce), or industry association. It targets the key issue: curbing unnecessary low-end imports from China while boosting Indian manufacturing under the Make in India and PLI schemes.

📄 Policy Framework & Action Plan to Curb Non-Essential Imports from China and Promote Indigenous Manufacturing

Submitted To:

[Relevant Ministry / Trade Body – e.g., DPIIT, DGFT, Ministry of Commerce, MSME Ministry, NITI Aayog]

Submitted By:

[Your Organization Name / Individual Name]

Executive Summary

This proposal outlines a strategic framework to reduce India’s dependence on unwarranted, low-end imports—especially from China—and to strengthen domestic manufacturing capacities through targeted policy interventions. The plan aligns with the vision of Atmanirbhar Bharat and reinforces the Make in India and PLI (Production Linked Incentive) schemes by addressing regulatory gaps, market dynamics, and MSME support systems.

Key Objectives

1. Identify and restrict import of non-essential low-end goods (e.g., toys, plastic articles, decorative items, electronic accessories).
2. Strengthen regulatory checks and enforcement at the borders.
3. Provide policy and financial support to Indian MSMEs and manufacturers in these product segments.
4. Increase consumer awareness and shift demand toward quality indigenous alternatives.

Policy Components & Action Plan

1. Import Regulation & Enforcement

Policy Measure	Action Steps	Responsible Agency
Expand Negative/Restricted List	Identify and move 100+ HS codes of low-end imports (especially Chinese) to DGFT’s restricted list	DGFT, Ministry of Commerce
Mandatory BIS Certification	Extend compulsory BIS certification to all toys, electronics, gift items, and festive decor	BIS, QCI, MoC
Import Licensing for Key Items	Mandate pre-import licensing for specific goods, especially from flagged countries	DGFT
Real-Time Data Monitoring	Deploy AI-driven customs surveillance for under-invoicing, fake CoO declarations	CBIC, Customs Dept
Labeling & Country of Origin	Strict implementation under Customs Rules, 2020 for e-commerce & retail imports	Customs, MeitY

2. Duties, Tariffs, and Anti-Dumping Measures

Measure	Details	Responsible Body
Anti-Dumping Duties	Impose/review duties on plastic toys, gift items, LED strips, unbranded electronics from China	DGTR (Directorate General of Trade Remedies)
Customs Valuation Audit	Crack down on under-invoicing through independent audits	CBIC
Selective Tariff Hikes	Increase basic customs duty on non-essential, domestically producible items	Department of Revenue, MoF

3. PLI & Make in India Incentives Expansion

Segment	Incentive Proposal	Implementation Agency
Toy Manufacturing	Extend/renew PLI for domestic toy clusters (e.g., Karnataka, UP, Tamil Nadu)	DPIIT, MSME Ministry
Handicrafts & Festive Articles	Marketing subsidies, technology upgradation, GST waivers for handmade goods	Ministry of Textiles, KVIC
Electronics Components	Expand PLI to include low-end but high-volume parts (chargers, wires, speakers)	MeitY, Invest India
Raw Material Support	Encourage local tooling and plastic molding ecosystem	MSME Ministry, State Industrial Boards

 

4. Domestic Ecosystem Development

Action Area	Key Recommendations	Stakeholders
MSME Credit Access	Increase collateral-free loans & special credit lines for clusters producing import substitutes	SIDBI, Banks
Testing Infrastructure	BIS & QCI to set up rapid-testing labs at major ports and SEZs	BIS, QCI
E-commerce Boost	Launch 'Swadeshi Store' filters on major platforms (Amazon, Flipkart)	DPIIT, MeitY, FICCI
Skill Development	PMKVY to include toy design, electronics repair, packaging as priority courses	NSDC, MoSDE

5. Consumer Awareness Campaigns

Initiative	Scope	Execution Partners
“Buy Indian First” Campaign	TV, social media & print campaigns during festivals	DAVP, MyGov
Swadeshi Product Label	Voluntary labeling for Indian-made goods	DPIIT, BIS
School & College Drives	Workshops on Atmanirbhar Bharat for youth	NCERT, MoE

Timeline (Suggested Rollout)

Phase	Duration	Key Milestones
Phase I	0–6 months	Negative list expansion, BIS mandate, customs surveillance tools
Phase II	6–12 months	PLI expansion, credit access, consumer campaign
Phase III	12–24 months	MSME infrastructure upgrade, e-commerce filters, skill training

Expected Outcomes

• 25–40% reduction in imports of low-end, unwarranted items within 2 years
• Increased market share for domestic manufacturers in toys, handicrafts, and small electronics
• Strengthened BOP (Balance of Payments) and trade resilience
• Enhanced employment in MSME and informal manufacturing sectors

Conclusion

This policy framework is designed not only to reduce India’s reliance on low-value imports from China but to catalyze the growth of indigenous manufacturing ecosystems. Timely action across ministries and a coordinated approach will ensure lasting impact for India’s economy and strategic self-reliance.

‘VOCAL for LOCAL’

‘One District One Product’

‘Make in India’

‘Buy only Indian Handicrafts and other Merchandises to Support Indian Artisans and MSMEs’.

‘JAI HIND’

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