India considers a slew of measures to combat Beijing’s ‘Made in China 2025’ strategy

India is bracing to meet the challenges posed by Beijing’s ‘Made in China 2025’ strategy, a three-step plan to promote China as a high-tech manufacturing powerhouse by 2049, through a slew of measures to check subsidised imports including anti-dumping and anti-subsidy duties, quality control orders and possible collaboration with Western nations, sources have said. 

Under the Made in China 2025 strategy, the government provides subsidies, including low-interest loans and tax breaks, to high-tech companies such as electric vehicle manufacturers, chipmakers and new and renewable energy equipment producers such as PV solar equipment.

“We cannot allow China to become a manufacturing powerhouse by exporting subsidised items.  India is utilising both options: imposing anti-dumping and anti-subsidy duties, as well implementing quality control orders (QCO) to check imports of cheap items from China. This will remain our strategy going forward,” an official tracking the matter told businessline.

• Also read: Indian steelmakers urge government for protective measures against rising Chinese imports 

Strategic Vigilance

China was the top supplier of goods to India in 2023-24, accounting for imports valued at $101 billion, while India exported goods worth $16.65 billion.

While the Department for Promotion of Industry and Internal Trade (DPIIT) is the nodal body keeping a tab on China’s moves, other Ministries and Departments, such as the Ministry of New & Renewable Energy, are also keeping a watch, the official added.

China’s strategy

Launched in 2015, the ‘Made in China 2025’ strategy is aimed at achieving 70 per cent self-sufficiency in high-tech industries by 2025, competing with other manufacturing rivals by 2035, and transforming the country into a global manufacturing powerhouse by 2049.

So far, India has felt the impact most in PV equipment imports from China. The country accounted for 56 per cent of India’s cumulative solar PV cell imports and 66 per cent of solar PV module shipments in FY24 and 68 per cent of solar PV cell and 59 per cent of solar PV module imports during April-May of FY25. In value terms, India’s imports of solar PV cells and modules soared to a record $6.21 billion in FY24.

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Greater threat

“Going forward, as India steps up on its hi-tech manufacturing, such as semiconductor chip fabrication, cheap imports from China can pose a greater problem,”  the source added.

With Western countries, including the US and European countries like Germany, more worried about Chinese high-tech products capturing a greater share of the global market, New Delhi is also considering collaborating with other Western countries to meet the challenge jointly.

“India is open to joining other nations, including Western countries, in their efforts to check China from hurting domestic industry. This option is being explored at various levels,” another source said.

While China has stopped mentioning its strategy openly after countries such as the US, Japan and some others strongly criticised it following its launch in 2015 on the ground that it focussed on localised production giving preferential treatment to domestic firms and companies, reports suggest that it continued implementing its plans.

“As China moves on to the second stage of competing with other manufacturing rivals in stage two of its plans, things could get tougher for the Indian industry in several areas. That is why India has to stay watchful,” an industry player said.