Lok Sabha Question No. 2527 (UNSTARRED), answered on 2016-08-01
Subject: Imports from China
Ministry: COMMERCE AND INDUSTRY
Asked by: GAURAV GOGOI, B. S. YEDDYURAPPA, K. KAMARAAJ, JYOTIRADITYA MADHAVRAO SCINDIA, RODMAL NAGAR, KUNWAR PUSHPENDRA SINGH CHANDEL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2527 TO BE ANSWERED ON 1 st  AUGUST, 2016

## IMPORTS FROM CHINA

## 2527. SHRI GAURAV GOGOI:

SHRI B.S. YEDIYURAPPA:

DR. K. KAMARAJ:

SHRI JYOTIRADITYA M. SCINDIA:

SHRI NAGAR RODMAL:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether substandard quality of products are being imported into the country from China and if so, the action taken by the Government to ensure quality of such products;
- (b) whether the Government proposes to review the import policy in this regard and if so, the details thereof along with the steps taken in this regard;
- (c) whether any group has been constituted by the Government to assess the impact of these low quality products on indigenous products and if so, the details thereof;
- (d) whether the Government has any proposal to ban the import of cheap plastic goods from China  due  to  toxic  contamination  and  if  so,  the  details  thereof  indicating  period  of ban/restrictions; and
- (e) whether India's trade deficit with China has widened and if so, the details thereof along with the reasons therefor and the steps taken/new strategies adopted by the Government in this regard?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a)  to  (c)  Economies  today  across  the  globe  are  highly  complex  and  interdependent.  No economy  can  adopt  a  closed  stance  without  adversely  impacting  its  citizens  in  terms  of meeting  their  needs.  Imports  address  situations  like  shortage/  non-availability  of  item, price/quantity preferences of consumers etc. Within this framework, goods are imported into the  country  subject  to  all  the  laws/rules  regarding  protection  of  environment,  ensuring quality,  standards  and  national  security.  Further,  the  Foreign  Trade  Policy  (2015-20)  lays down that whatever domestic Laws/ Rules/ Orders/ Regulations / Technical specifications/

environmental/ safety and health norms are applicable on domestically produced goods; the same shall apply, mutatis mutandis, to imports.

India  has  an  elaborate  and  robust  legal  framework  and  institutional  set  up  to  protect  its environment, life and health of its people, plants and animals. The Ministry of Environment, Forest  and  Climate  Change  (MoEF&CC) has notified the Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008 for environmentally sound management of hazardous wastes. The BIS standards applicable to domestic goods are also applicable to imported goods. For imported food and edible items, Food Safety and standards Act (FSSA), 2006 and Rules there under are also applicable.

- (d): The Government vide Notification GSR No.395 (E) dated 04.04.2016 has included plastic waste in the Schedule-VI of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, and thus  the item is now prohibited for import.
- (e): Details of the merchandise imports, exports and the trade deficit with China during the last three years are given below:-

## Bilateral Trade between India and China 2013-14 to 2015-16

Value in US$ Billion

| Year    |   Import |   Export |   Total Trade |   Trade Deficit |
|---------|----------|----------|---------------|-----------------|
| 2013-14 |    51.03 |    14.82 |         65.85 |           36.21 |
| 2014-15 |    60.41 |    11.93 |         72.34 |           48.48 |
| 2015-16 |    61.7  |     9.02 |         70.73 |           52.68 |

(Source; DGCI&S)

Increasing trade deficit with China can be attributed to the relative demand for imports in India and China for each other's goods. The major imports from China are products such as telecom instruments,computer hardware and peripherals, fertilizers, electronic components/instruments, project goods, organic chemicals and drug intermediates, consumer electronics, electrical machinery and equipment, iron and steel etc.  India's export to China comprises of ores, slag and ash, iron and steel, tin and articles thereof, tools implements of base metal; raw hides and skins  and leather; plastics, organic chemicalsand cotton etc.

Efforts  are  continously   made  to increase overall  exports  by  diversifying   the  trade basket with emphasis on manufactured goods, services,  resolution of   market access issues and  other non-tariff barriers.

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