The Indian government has made a significant change in its trade rules on Thursday.
According to the new rules, companies bidding in India for government purchases will be able to do this only if they are registered in the Registration Committee of
DPIIT
Apart from this, it will be necessary to take political and security approval from the Ministry of External Affairs and Ministry of Home Affairs, Government of India. The central government has given instructions to all the state governments that they should also implement this rule in all their government purchases. Under this rule, the Ministry of Finance has also given some exemptions.
Due to covid-19 epidemic, exemption has been given till December 31 for the purchase of goods related to Kovid. These changes have been made by the Government of India in the General Financial Rules, 2017.
This will apply to those countries which share border with India and participate in government purchases. According to experts, China has not been said anywhere in this change, but this decision will have the most impact on trade with India's neighbor China.
Impact on china
Talking about the statistics, in 2019-20, India imported 65.26 billion dollars from China. Whereas China imports only 16.6 billion dollars from India. There is no separate data available about how much government purchase is there. These figures have been released by the Directorate General of Foreign Trade of India.
It is so clear from these figures that there was a trade deficit of $ 48.66 billion between the two countries. That is, we import more goods from China and in comparison to that, China buys very few things from us. In the last four to five years, these figures have been around the same.
So will this step of India break the back of China's economy? According to Gautam Chikramane, Vice President at the Observer Research Foundation, India has taken this step for its safety. This will not have much impact on China's economy, because the US and European Union are more important for China from the point of view of business strategy.
Gautam Chikarmane is known to know about economic policies in India and internationally.
The government of India in its order has also described this step as a decision in terms of defense and national security. In the last few days, other countries of the world have also made many serious allegations like stealing data and spying on a Chinese company, which has always been rejected by China. The same reasoning was also given by the central government behind banning 59 apps.
If Gautam believes, then India is sending a message that China is in great danger for India's security. Such a country, which is clearly expressing its enmity with India, supports Pakistan. With which there is tension on the border, India cannot open the door for that country and welcome it.
It is in this context that the change of this new business rules needs to be seen.
Then what will India achieve? In response to this question, Gautam says that this is part of a strategy which is called 'de-coupling'. Today, a campaign has been launched in the whole world to do 'de-coupling' with China.
America, Britain and Australia are also involved in this now. India is also a part of that. But to assume that just stopping India will make a big difference to China, it is absolutely wrong. But with such a step of India, a moral pressure is created on other countries of the world, and they too can take steps in this direction.
Gautam also argues for his statement. Recently, India banned Chinese apps. Now talked about banning tick-talk in America too. From India, 5G and other government projects started an exercise to show the exit to Chinese companies, then Britain and America also talked about banning Khwave.
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