NEW DELHI: Concerned over supply constraint of finished goods such as automobile, smartphones and pharaceuticals in the domestic market, several industry bodies have asked the government to release the supplies stuck at airports and ports on an immediate basis
Following the deadly clash of Indian and Chinese troops in the Galwan Valley and a wide call to boycott Chinese goods, import consignments from China are being subjected to a hundred per cent manual inspection resulting in delays in clearance.
“Members are concerned that if there is a delay, it will hamper production. India’s auto industry in dependent on China for crucial parts and a delay at this point of time will impact the sector which is showing early signs of recovery,” Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta told The New Indian Express.
Parts worth $4.75 billion is imported for China which accounts for four per cent of the total auto industry turnover, Mehta said. “A few critical items imported from China are yet to be manufactured locally. Until a feasible alternative is found, the existing supply chain should not be disturbed,” he added.
Rajan Wadhera, president, SIAM, said that inordinate delays in clearance due to congestions at port could eventually impact manufacturing of vehicles in India. “The industry is piecing itself together as growth is limping back; any further disruption at this juncture is best avoided,” Wadhera said.
Similarly, the Pharmaceutical Export Promotion Council of India (Pharmexcil) in a letter to government said that members are facing acute disruption in manufacturing of pharmaceutical products over the last three days. According to the letter, critical devices such as ‘infrared thermometers’ and ‘pulse oximeters’ which are specifically aimed at Covid-19 diagnosis as also ‘glucometers’ and ‘strips’ are also held up at airports.
Last week, inudustry body Industry association India Cellular and Electronics Association had also written to the government saying the move to check every assignment will lead to millions of dollars of losses and spook the large foreign investors.
Strict scrutiny
Delay in clearances of goods was adding to the crisis for auto industry
China-origin consignment are stuck at Chennai, Delhi and Mumbai airports