India mulling economic measures against China, could limit Beijing's access to Indian market: Report

(Representative Image: PTI)

India is mulling economic measures against China, including limiting the country's access to India's huge market, as a response to its aggression on the Line of Actual Control (LAC) even as the Indian armed forces have been put on highest level of alert, Hindustan Times has reported.

According to the report, at least 100 Chinese products are looking at an anti-dumping action. India could extend safeguards and anti-dumping duties on more than two dozen Chinese products ranging from calculators and USB drivers to steel and Vitamin E.

Moreover, according to the report, future investments from China could be barred, including the participation of its firms in important projects such as the 5G market, four government officials said.

"Hopefully, good sense will prevail (upon China). We have several options and we will not hesitate to exercise them depending on the situation," one of the officials said.

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Another official said that Beijing's aggression has come at the wrong time for China, since it comes at a time when India is "aggressively pushing an economic policy of self-reliance".

"... Anti-China sentiments have gripped major global economies such as the United States, and it is the prime suspect for spreading the Covid-19 virus," the official added.

The Confederation of All India Traders (CAIT), meanwhile, has also decided to step up its nationwide call for the boycott of Chinese products. The body, containing over 70 million local traders, has released a list of 450 commodities that can be sourced locally.

Experts, however, have cautioned that an economic move against Beijing should be handled with caution.

"As much as the popular sentiment and political will dictates, India is not in a position to hurt China economically, and therefore we should carefully consider our economic position. The key question to ask would be the cost imposed on our own society in an attempt to hurt another country," Anupam Manur, assistant professor at Takshashila Institution told the newspaper.

"Every essential item that we import from China will become more expensive and the reality is that we cannot find credible domestic alternatives overnight," Manur added.

Meanwhile, militarily, an army officer told the newspaper that the Indian Army is "ready for any task".

"We have improved our posture in all sectors, from Ladakh to Uttarakhand, Sikkim and Arunachal Pradesh. We are ready for any task," the officer said.

Read our complete coverage on the India-China border tension.