‘Make in India’ or ‘Make in China’ & Dump in India?

What price ‘Make in India’? The much touted slogan of Prime Minister Narendra Modi, together with his vow to ban imports from China, has clearly not stemmed the Dragon’s economic invasion of Indian markets. What is more, China has left behind the US, the UAE and the UK during fiscal 2023-24 and has emerged as our largest trading partner with two-way trade figures of $ 118.4 billion.

For the record, during 2021-22 and 2022-23 the US was India’s biggest trade partner, while before that it was the UK. During fiscal 2024, imports from China have surged to cross $ 100 billion and reach $ 101.75 billion, indicating a 44.7 per cent spurt over the earlier $ 70.32 billion.

Chinese economists have ‘hailed’ their country’s bumper exports to India as contributing immensely in reviving the sagging economy of the Dragon. During the last ten years, despite the Indian Prime Minister’s repeated pronouncements on banning the inflow of Chinese goods, our giant neighbour’s share of India’s imports have gone from 21 per cent in 2012-13 to 30 per cent in fiscal 2023-24.

According to renowned economic think tank Global Trade Research Initiative (GTRI), from fiscal 2019 to fiscal 2024, India’s trade dynamics with its top 15 trading partners underwent significant transformations, impacting both exports and imports along with the status of trade surplus or deficit across various sectors. Surprisingly, much against the repeated utterances by the Indian Prime Minister to ban imports from China, the Dragon has now surpassed our three previous leading trading partners — the USA, the UAE and the UK.

According to GTRI, goods imported from China have risen 2.3 times faster than India’s total global imports over a period of 15 years. What is more, the think tank adds, China is the top supplier to India in eight major industrial sectors, including machinery, chemicals, pharmaceuticals, and textiles, belying the general perception that Chinese imports are high only in the electronics sector. Indian businessmen are lamenting that large-scale imports from China have adversely affected their business and balance sheets.

India’s total merchandise imports stood at $ 677.2 billion in 2023-24, of which over 15 per cent was sourced from China. Of this, $ 100 billion of imports was in major industrial product categories. Does this mean that the Prime Minister’s vow to ban imports from China was an empty one?

The GTRI report also highlights the significant reliance on imports from China across various sectors. Citing trends from the first 10 months of fiscal 2023-24, it notes that almost 42 per cent of India’s textiles and clothing imports, and 40 per cent of its machinery imports in this period, came from China. For the same period, the corresponding number was 38.4 per cent for electronics, telecom and electrical products.

Naturally, the question arises of whether the much-touted ‘Make in India’ policy has made any dent in the country’s dependency on imports from China. Clearly, the time has come to review the country’s import strategies and take imaginative and effective steps to boost indigenous production. The strategic implications of the growing dependency on China are profound, adversely affecting not only the economy but also our national security.

Ergo, the need of the hour is not just patriotic slogans but effective measures to bolster industrial output across the board as well as diversify imports in order to reduce our overdependence on a giant neighbour like China. The government should make it clear whether our policy is ‘Make in India’ or ‘Make in China (and Dump in India)!

written by

Deven Malkan

Cover story     

Gold Heads To Cross Rs 1 Lakh-Mark

India’sfascination with gold is probably as old as the country’s hoary history. The precious yellow metal remains the first choice of investment for millions of Indians of all socio-economic backgrounds. Apart from its jewellery- and bullion-related qualities, its indisputable advantage over other investment avenues lies in its historic and continuing appreciation over time.

Corporate Grapevine         

Adani Port shares ride Norges exit

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Hindujas’ Rel Cap bid come undone?

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Aviation bonanza for GMR, Adani

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Corporate Development     

Hikes share in tech-smart Ecozen

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Captains Speak         

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New AI centre in Paris in June

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Launches Premier Tyres

With a view to improving its marketshare in the premium tyre segment, CEAT Ltd has launched a range of premium steel radial tyres which will be sold directly to consumers. Revealing this at a conference call organized to discuss the may 2024 quarter performance, Arnab Banerjee, CEO and MD, added that the steel radial tyres that were earlier only manufactured and sold to Original Equipment Manufacturers (OEMs) will now be available for the aftermarket.

Portfolio Choice         

Five-fold sales surge in 12 years

The Maharatna, Oil and Natural Gas Corporation, is India’s largest crude oil and natural gas company, contributing around 70 per cent of the country’s domestic production. Crude oil is used by downstream companies like IOC, BPCL, HPCL and MRPL to produce petroleum products like petrol, diesel, kerosene, naphtha and cooking gas LPG.

Riding India’s infra bandwagon

Bangalore-based Yuken India was promoted in 1976 in technical and financial collaboration with Yuken Kogyo Company Ltd, Japan (YKC) which today holds a majority 56.16 per cent equity stake in the Indian company. The Japanese company is an undisputed leader in oil hydraulic equipment.

Pole player in automotive castings

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Corporate Feature         

Receives In-principle Approval for Preferential Issue of Warrants, In Advance Discussions for Potential Acquisition

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Excellent show for FY 2024: Sales at highest ever level

JTL Industries Limited is a fast-growing dynamic steel tube manufacturing company that specializes in producing black steel pipes, pre-galvanized and galvanized steel pipes, large-diameter steel tubes and pipes, and hollow structures. The company in its Board Meeting held on 10th May 2024 announced financial result for Q4 and FY24.

Strengthens global footprint with Strengthens global footprint with expansion into South American market

Rushil Decor (BSE: 533470, NSE: RUSHIL), a prominent name in the manufacturing of ecofriendly MDF, laminates, and plywood, is thrilled to announce its strategic expansion into South America. With exports already reaching over 50 countries, Rushil Decor is set to penetrate one of the largest markets for MDF globally. On the eve of Interzum Bogota, Mr. Rushil Thakkar, Executive Director Rushil Decor expressed hope and confidence about growing with the multi- billion-dollar global wood panel market.

Subsidiary secures new client win in European region

ITCube Solutions Pvt. Ltd. (subsidiary of One Point One Solutions Limited), a prominent player in the technology solutions provider space has secured a new client-win in European region a renowned global player specialising in providing solutions against brand threats utilizing advanced AI-driven tools to combat online piracy, counterfeiting, and intellectual property infringement.

Reports solid Q4FY24 earnings, with record 37.62% revenue growth and best-ever operational performance

One Point One Solutions Ltd. (NSE: ONEPOINT) (1Point1), the country’s leading Business Process Management Solutions company, Announced Q4 FY24 results today for the period ending March 31st, 2024. For the quarter ended 31 March 2024, the revenues were reported at Rs. 53.29 crores, a growth of 37.62% YoY. EBITDA rose 33.19% YoY, from Rs. 11.66 crores (Q4FY23), to Rs. 15.53 crores (Q4FY24). PAT recorded a growth of 125.76% YoY, from Rs. 2.95 crores (Q4FY23) to Rs. 6.66 crores (Q4FY24).

Attractive rights issue opens on May 21, 2024

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Six strategies for growth: Mapping the journey to the next orbit

Cellecor Gadgets Limited, (NSE EMERGE: CELLECOR), a prominent figure in the affordable electronics sector, is experiencing significant growth as it broadens its reach, distribution channels, and product offerings. This expansion has led to Cellecor surpassing its past sales figures, highlighting the success of its marketing tactics. The company has announced impressive financial results for the fiscal year 2023-2024 and has also unveiled a detailed an outlining growth strategies for 2024-2025.

Successfully concludes the payment for acquisition of EMC Ltd.

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Robust Earnings show for FY24: PAT Jumps 115% YoY

Sarveshwar Foods Ltd. (BSE: 543688, NSE: SARVESHWAR), engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets has announced its audited financial results for the quarter and full year ended March 31st, 2024 in the board meeting held on 16th May, 2024.

Gratifying show for FY 2024: Revenues grow 27% YoY

Servotech Power Systems Ltd, (NSE: SERVOTECH), a prominent manufacturer of cutting-edge solar products and electric vehicle (EV) chargers, unveiled its financial results for the quarter and year ended March 31, 2024 during the board of directors meeting held on 9th May 2024.

Incorporates Subsidiary for Insurance Broking

Standard Capital Markets Ltd., a leading player in the financial services segment, has incorporated a subsidiary to act as a direct broker under the Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018. Recently, the company’s board approved the declaration of special dividend at the rate of 1%.

Robust Earnings for Q4FY24 PAT shoots up 79% YoY

Apollo Micro Systems Ltd. (BSE: 540879, NSE: APOLLO), a pioneer in design, development and assembly of custom-built electronics and electro-mechanical solutions, has reported its earnings for quarter and year ended 31 March 2024. The company achieved significant financial growth in FY24, driven primarily by robust order execution.

May 31, 2024 - Second Issue

Industry Review

VOL XV - 21
May 16-31, 2024

Formerly Fortune India Managing Editor Deven Malkan Assistant Editor A.K. Batha President Bhupendra Shah Circulation Executive Warren Sequeira Art Director Prakash S. Acharekar Graphic Designer Madhukar Thakur Investment Analysis CI Research Bureau Anvicon Research DD Research Bureau Manager (Special Projects) Bhagwan Bhosale Editorial Associates New Delhi Ranjana Arora Bureau Chief Kolkata Anirbahn Chawdhory Gujarat Pranav Brahmbhatt Bureau Cheif Mobile: 098251-49108 Bangalore Jaya Padmanabhan Bureau Chief Chennai S Gururajan Bureau Chief (Tamil Nadu) Ludhiana Ajitkumar Vijh Bhubaneshwar Braja Bandhu Behera

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