Govt sources say India is following a policy of building domestic capability in manufacturing, especially EVs, speculative to worry on dumping products by China
The decision of the US to increase tariffs on a number of Chinese items indicates that “no country is willing to put all their eggs in one basket post the Covid-19 pandemic,” said Indian government sources. India is also following a policy to ensure the country has domestic capability for manufacturing of electric vehicles (EVs), sources states, adding that India’s policy is sound and there is no need to worry.
US President Joe Biden on Tuesday announced steep tariff hikes on a number of Chinese imports including EV batteries, EVs, semiconductors, solar cells and medical equipment including face masks, medical gloves, syringes and needles.
Noting that the US is following policies by which they can lessen dependence on China, particularly in battery manufacturing, sources said that every country would like to not depend upon one country source, particularly where mobility is involved. “India is also building manufacturing capacity,” they noted.
A note by economic think tank GTRI said the raising of tariff on EVs, batteries and many other new technology items by the US may push China to dump these products in other markers including India. “It’s a moment for India’s Directorate General of Trade Remedies (DGTR) to remain vigilant,” it said.