Policy Watch: Is Protectionism India's path to superpower status?
Arnab Goswani, China and atmanirbharta.
Hi there,
India's space agency has released new footage that shows Chandrayaan-3's rover for the first time ever. The video was taken just hours after the country made history by becoming the first to land near the south pole.
It shows Pragyaan (Sanskrit for wisdom) exiting the lander by sliding down a ramp and taking first steps on the lunar surface. The Vikram lander - carrying the rover in its belly - had successfully touched down as planned on Wednesday evening.
With this, India joins an elite club of countries to achieve a soft landing on the Moon, after the US, the former Soviet Union and China. And that too at a much smaller budget than its peers.
Chandrayaan-3 is a global success story of India’s Atmanirbharta (self-reliance).
Recently on a Arnab Goswami primetime debate on TV, he railed against Chinese propaganda funding to online news media NewsClick, saying it was part of a conspiracy by China, collaborating with anti-national forces in India. But he did so whilst the logo of show’s main sponsor, a Chinese company, was emblazened on the screen.
(For completeness, here is The New York Times investigation on potential Chinese propaganda monies flowing into NewsClick.)
The irony seemed to be lost on Arnab. But China is certainly taking up more and more policy making time in India.
Until a few weeks ago, the import of computers in India was free, a country where electronic imports stood at $16.7 billion in the April to June 2023 period.
On August 3rd, the Indian government changed this, imposing immediate restrictions on the import of seven items, now requiring a valid licence. Gurcharan Das called this a new license raj, A Laptop Error.
Why? Well, apart from building up Atmanirbharta, China!
Read on for what this means for India’s manufacturing capabilities and imports from China.
Policy Watch: Is Protectionism India's path to superpower status?
Until a few weeks ago, the import of computers in India was free, a country where electronic imports stood at $16.7 billion in the April to June 2023 period. India’s laptop and personal computer market is two thirds imported, and is worth $8 billion annually as per research firm Counterpoint.
On August 3rd, the Indian government changed this, imposing immediate restrictions on the import of seven items, now requiring a valid licence. On August 4th, they amended this, deferring its implementation of licensing till October 31 2023. Thus, from November 1, imports of seven items including laptops, tablets and personal computers will require a licence.
This rule also includes purchases from e-commerce portals via post or courier. However, re-imported goods after repair and goods integral to a capital goods from this list will be exempt from this. Furthermore, each consignment is permitted to exempt up to 20 items for specific purposes such as R&D Testing, benchmarking, and product development.
Experts have discussed the purpose of this policy to move India’s dependence away from countries like China and Korea. A Global Trade Research report found that India’s imports from China focused on three categories predominantly, one of which was electronics. Between April to May 2023, India’s imports from China for these restricted seven items was at $743.56 million, out of which the highest share was for personal computers. A source told Reuters that security concerns from China was an important reason behind this move, a country with whom India has had border clashes in the past.
Additionally, this move may bolster local electronic manufacturing, giving them an opportunity to benefit from boosted demand, linking in with the ‘’Make in India’’ program. This program under the Modi administration promotes local manufacturing to boost employment. Local manufacturers such as Reliance Jio which just launched a new laptop model may stand to benefit. Dixon Technologies, an electronic manufacturer in India gained 7% in shares upon announcement of the import licences. Goldman Sachs sees this move benefitting local contract manufacturers, creating a ‘’paradigm shift’’. Three years ago, when India banned smart TV imports, analysts also found that local manufacturers experienced a boost.
Ananya Bhattacharya from Quartz has drawn parallels between this move and the ‘License Raj’ from the 1950s to 1990s in India, a system criticised for rigidity. Indeed, for companies such as Dell, Acer, Apple, Samsung and HP this may mean increased obstacles. HP holds a 30% share in the Indian personal computer market in 2022, and Dell holds 19%. Apple, HP and Samsung have all frozen new imports in an attempt to plan their next steps. This has led to some predicting prices rising because of increased scarcity from these companies, especially in the festival season upcoming during which sales normally increase. Others have pointed out that this may not increase prices due to an excess of capacity of electronic manufacturers in India.
This move may quicken a process already underway with companies looking beyond China for manufacturing. With the expected growth of India’s working-age population to 1 billion and increased manufacturing by companies such as Apple and US chipmaker Micron, this move may solidify India’s standing as a global manufacturer.
Upcoming events:
Asian Achievers Awards (6:30pm, Fri 15 September | London Hilton on Park Lane | Book here)
Ticket bookings close next week. Join more than 600 guests in a glittering black-tie dinner evening with music, dance and comedy performances. The Shortlist for the Awards has been announced here. To book, note that there are special discounts available for Bridge India Members.
The Filmy Shilmy Show: A spotlight on British Asian filmmakers (6:30pm, Fri 22 September | Rich Mix, Shoreditch, London | Book here)
The first edition of the show will see candid conversation with three award-winning filmmakers including Pravesh Kuma MBE, Nathalia Syam and Dr Parvinder Shergill, in conversation with Anuj Radia.
The discussion will centre around the process of making cinema that is rooted and reflective of ethnic lives within the Western world, as well as touching on the wider themes of the films and the challenges independent filmmakers face in gaining mainstream traction.
Ramayana: A puppet show (6pm, Fri 10 Nov | Central London | Book here)
The Ramayana Puppet Show is StoryHour UK flagship performance. A timeless piece of culture and art, this story narrates the epic tale behind the festival of Diwali, using uniquely hand-crafted puppets. Having been performed across many different audiences, this puppet show has been celebrated for capturing the essence of a classic. The show has been screened at various Indian embassies across Europe and schools in London while also being readily available in 6 languages here. It has been applauded by Indian Member of Parliament Shashi Tharoor, author Amish Tripathi and others.
Alongside a screening of the puppet show, there will be live puppeteers demonstrating scenes from the Ramayana, with an installation of the six puppets, followed by a talk and Q&A with producer Neelima Penumarthy.
When: 5 – 6:30pm, Wed 19 July
Where: Central London
Book: Bridge India Members: £10 | Others: £20 bookable here | Drinks and snacks provided
Why become a Member of Bridge India?
Well, because just in the last two months, we’ve won an Award for our work, launched our first university chapter at King’s College, being featured in The Daily Telegraph and hosted multiple events with change-makers in London and elsewhere. Not to mention we’ve some facilitated incredible connections between Members.
Become an Individual or Corporate Member of Bridge India. Here’s what we offer:
Events with world leaders and experts
Powerful networking opportunities
Build a deeper understanding of India
Engage in non-partisan, respectful discussion, away from the ‘noise’
Join a set of Members an NDTV report once called “change-makers”
Dedicated account manager to introduce you to other Members
Opportunity to curate and co-host events, and jointly publish thought leadership
Access to trusteeships, professional roles, invitations to special events and more
Individual Membership is £250 annually (with Gift Aid for UK tax payers; Concessions £125) and there are several Corporate Membership options available.
--
The Bridge India Trustees
contact@bridgeindia.org.uk | www.bridgeindia.org.uk
Follow us on LinkedIn | Instagram | Twitter | Facebook | YouTube
About Bridge India: Bridge India is a progressive non-profit think tank dedicated to discourse on public policy. Bridge India is a registered charity number 1183696. Click here to donate.