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Energy

Amidst 'Record High for India-China Trade,' Govt Scheme to Reduce Import Lists Several Chinese Firms

Eleven of the 12 winners under the production-linked incentive scheme – including industry leaders like Reliance New Energy Solar and Tata Power – have listed Chinese supply chain partners and service providers. 

New Delhi: The Chinese envoy to India has said that trade between India and China had reached record levels in 2023. On the same day, reports also said that a production-linked incentive scheme for solar equipment manufacturing will see a hike in Chinese involvement.

Business Standard has reported that India’s flagship production-linked incentive scheme, which had aimed at reducing import dependence, is likely to see a significant Chinese presence in supply chain partnerships and related services.

Eleven of the 12 winners under the scheme – including industry leaders like Reliance New Energy Solar and Tata Power – have listed Chinese supply chain partners and service providers.

The report notes that some have mentioned more than 20 Chinese vendors.

These lists were submitted to the Ministry of New and Renewable Energy to facilitate visas for foreign experts or agencies.

Meanwhile, Chinese Charge D’Affaires Ma Jia has said that the growth in trade between the two countries – to US $136.2 billion – went along with other areas of “improvement” in bilateral ties, according to The Hindu.

In 2022, bilateral trade had reached a record high of $135.98 billion, while the trade deficit in favour of China had crossed $100 billion, driven by a 21% rise in imports from China into India, this report says. “India’s exports to China also increased by 6% last year,” Ma added at the new year event she spoke at on February 6.

Ma highlighted the “important consensus” reached by Chinese President Xi Jinping and Indian Prime Minister Narendra Modi on bilateral ties.

However, tensions remain between the two countries after the 2020 fight in eastern Ladakh, and as The Hindu notes, China has not appointed an Ambassador to Delhi in over 16 months, the longest such period thus far.