NEW DELHI: In a bid to safeguard supply chains in view of emerging geopolitical situation and address widening trade deficit with China, government think-tank NITI Aayog has launched a study to develop a comprehensive action plan.
It has floated expression of interest inviting bids from consultants to undertake the two studies in areas of reducing trade gap with China and give impetus to India’s Make in India campaign. The development comes at a crucial time when the tensions between India and China have been escalating since the Galwan clash in June 2020.
“The study would aim to develop a comprehensive action plan to bridge the trade deficit over time and align trading strategies with emerging geopolitical situations and potential risks to safeguard supply chains,” the Aayog said in a notice . According to the terms of reference, the study would analyse the trends in India-China trade (at product category level) over the recent years to observe the patterns of trade dependency and underlying cause for the deficit with the neighboring country.
As per the notification on Aayog’s website, the study will examine supply chains of India-China trade and comparable supply chains of India’s trade with other Asian countries to “derisk” India’s trade. It will undertake research to figure product categories where India has comparative advantage and a significant market in China to expand its exports.
The study would recommend policies required for bolstering local production and productivity in sectors similar to the global economy, which would not just narrow the trade deficit with China, but also help in capitalizing on global supply chain shifts. As per Niti Aayog, about 32% ($83.1 billion) of India’s merchandise trade deficit was with China alone in 2022-23.
Invites bids to carry study
Niti Aayog has floated expression of interest inviting bids from consultants to undertake the two studies in areas of reducing trade gap with China and give impetus to India’s Make in India campaign. The development comes at a crucial time when the tensions between India and China have been escalating since the Galwan clash in June 2020. The study would analyse trends in India-China trade (product category level) over recent years to observe the patterns of trade dependency