India is working on a plan to reduce its dependence on its supply chains in China, according to a report by The Economic Times (ET). The NITI Aayog is working on a strategy to address the trade deficit with China and suggest measures to secure supply chains from geopolitical risks.
A senior government official was quoted as saying that the Aayog will bolster its policy recommendations on tariff and non-tariff barriers. The NITI Aayog will also bring a consultancy firm to review India-China trade as part of the exercise.
The official said that supply diversification was the need of the hour as the dependence on Indian supply chains was highlighted during the Covid-19 pandemic and geopolitical escalations. He added that focused intervention was needed to secure supply chains from disruptions.