As China shutdown intensifies, Indian govt plans to rework supply chain |

[bhaigan]

To address the supply crunch, CII has suggested leveraging the existing excess capacity in the Indian industry; rolling back import duty hike to look for alternative sources of imports; expanding credit to manufacturing units with quick loan sanctions, and one-time emergency waiver of non-performing asset regulations for three months.

 

IMAGE: Shared bicycles and barricades block the way in Wuhan, the epicenter of the novel coronavirus outbreak. Photograph: Reuters

India could run out of supplies in mobile phones, auto parts, insecticides and pharmaceuticals within a fortnight as the China shutdown intensifies due to coronavirus, according to government officials.

Describing the concern as grave, an official pointed out, “we do not have enough time to arrange supplies from other countries”.

While the crisis situation has prompted the government to rework the supply chains, there’s no clear road map yet on how the supply shortfall can be met in the near term at least.

Officials have indicated that it’s an opportunity for India to scale up its manufacturing capabilities, but that will take time.

Besides the shortage in supplies, the government is also fire-fighting on bureaucratic procedures related to imports.

 

 

 

Finance Minister Nirmala Sitharaman said on Saturday that steps were likely to be taken to exempt imports of certain items from documentation, so that consignments from China get cleared fast.

The emergency measure is being considered as Chinese officials, caught in tackling the deadly virus, are not able to provide the necessary paperwork for cross-border trade.

“We are studying the sectors and ports where to provide this relief on a temporary basis,” Sitharaman said, while admitting that she’s worried about the fallout of the virus on the economy.

An analysis by the Confederation of Indian Industry (CII) has estimated that China supplies 43 per cent of India’s imports of the top 20 goods.

This includes mobile handsets ($7.2-billion import from China), computers ($3 billion), integrated circuits, and other inputs ($7.5 billion), fertilisers ($1.5 billion), pharma ingredient API ($1.4 billion), and antibiotics ($1.1 billion).

With over 90 per cent of solar power equipment being sourced from China, 2-4 gigawatts of upcoming projects are likely to be affected, according to CII.

Officials believe Customs duty would take a hit in February and March as a direct result of the coronavirus outbreak.

Sources in the Central Board of Indirect Taxes and Customs said they feared that plenty of consignments from China and even Southeast Asia were languishing in ports because of delay in clearances.

“These are imports for which papers are not arriving from China,” an official said.

The importers are also paying demurrage charges at the ports which raise the costs for them. These charges are likely to be waived.

Demurrage charges are levied by shipping lines on importers when they do not take delivery of the full container and move it out of the port or the terminal area within the permissible number of free days.

Opportunity for India

However, with China on shutdown mode, many companies are looking at India as an alternative destination.

“Some 10-12 companies, among those searching for alternatives to China, have spoken to us, and I feel their expectations from us are quite realistic and reasonable,” said Sitharaman.

The finance minister is scheduled to meet industry bodies and trade leaders, including those from the tourism sector, about the coronavirus threat on Tuesday.

She decided on these interactions after a recent meeting in Chennai, where importers flagged their concerns.

The government expects to earn Rs 1.25 trillion from Customs duty in 2019-20, according to Revised Estimates, down 19 per cent from last year’s Budget numbers.

Ajay Sahai, director general and chief executive officer, Federation of Indian Export Organisations, said any relaxation in submission of documents for imports purpose would be highly beneficial as statutory agencies have not yet commenced their full operation.

Scaling up domestic production

Meanwhile, officials from finance, commerce and other ministries are also expected to meet stakeholders to find ways on managing the coronavirus fallout.

For instance, Principal Economic Advisor Sanjeev Sanyal said he would hold meetings with industry segments over the next week to strategise on overcoming the supply shortage by scaling up domestic production.

“We are going to look at ways where we can rework the global supply chain with the help of domestic manufacturers… We are also talking to other countries. It is a big opportunity for us,” Sanyal told Business Standard.

 

 

To address the supply crunch, CII has suggested leveraging the existing excess capacity in the Indian industry; rolling back import duty hike to look for alternative sources of imports; expanding credit to manufacturing units with quick loan sanctions, and one-time emergency waiver of non-performing asset regulations for three months.

[bhaigan]

Very good opportunity to India to attract manufacturing, especially aspiring states like Andhra Pradesh

[kittaya]

30 minutes ago, bhaigan said:

Very good opportunity to India to attract manufacturing, especially aspiring states like Andhra Pradesh

Aspiring gispiring anaku.. akkada loans Ani kanapaddayi kabatti AP govt also applies ...

Loan ragane... Evadi vatalu vallaki pothayi

[CH_Desi]

True, my friend works for a furniture retailer and they source majority of their raw materials from China, with the current situation they planned to source from India, Vietnam & few other asian countries at least the situation is clear in China. Same case with my company too, they are planning to buy a lot of raw materials from India & other countries as a back up.

[BeerBob123]

Made in India 

man Anni companies Andhra ki q kattestayi 

[Kool_SRG]

2 minutes ago, BeerBob123 said:

Made in India 

man Anni companies Andhra ki q kattestayi 

Antha Jagananna mahathyam... 

[bhaigan]

14 minutes ago, BeerBob123 said:

Made in India 

man Anni companies Andhra ki q kattestayi 

Inka kattaledu bhayya opportunities unnayi ani chepthunna

[TheBrahmabull]

3 hours ago, bhaigan said:

Very good opportunity to India to attract manufacturing, especially aspiring states like Andhra Pradesh

 

 

[bhaigan]

3 hours ago, kittaya said:

Aspiring gispiring anaku.. akkada loans Ani kanapaddayi kabatti AP govt also applies ...

Loan ragane... Evadi vatalu vallaki pothayi

Avunu avunu ade anukuntunnaru vatalu pothunayi ane anukuntunnaru, next term vere govt. vachina tarvata vella meeda case lu veyipistharu anthe kada

[TheBrahmabull]

3 hours ago, kittaya said:

Aspiring gispiring anaku.. akkada loans Ani kanapaddayi kabatti AP govt also applies ...

Loan ragane... Evadi vatalu vallaki pothayi

indake Bhaigan babu - 22k investments vochinay ani cheppindu AP ki... nuvvu endi vaa loans antunnav..

 

already NABARD 2 Lakhs crores loan given no as per bhaigan ? thats why jalaganna raddu chesindu Trumf meeting ...

[bhaigan]

13 minutes ago, Kool_SRG said:

Antha Jagananna mahathyam... 

Opportunities unnayi ani antunna

[bhaigan]

Just now, TheBrahmabull said:

indake Bhaigan babu - 22k investments vochinay ani cheppindu AP ki... nuvvu endi vaa loans antunnav..

 

already NABARD 2 Lakhs crores loan given no as per bhaigan ? thats why jalaganna raddu chesindu Trumf meeting ...

Arey nuvvu first velli Amaravati agreeement tisukoni ra, neekosam ade pani ga separate thread vesinaru ayinakani paripoyav

[TheBrahmabull]

3 minutes ago, bhaigan said:

Arey nuvvu first velli Amaravati agreeement tisukoni ra, neekosam ade pani ga separate thread vesinaru ayinakani paripoyav

arey idiot - naa daggara vundi ani cheppaledu ra.. bewakoof.. dorikithe istha. lekapothey appatidaka  yaakshit bhajana chesuko..

 

okka chekka ganiki naku stright ga response iche matter ledu gani... pilla hook gallu edo thread esirru anta...

 

[TheBrahmabull]

@bhaigan capital city move chesthe as per CRDA 2 times minimum pay cheyali ra idiot Govt farmers ki.. Lekapothey nee mundamopi jailgun gadu enduku move cheyatledu official ga capital ni ? 

 

enno sarlu ninnu nee batch ni kosi karam pedithe budabukkala mohalu esukoni .. covering chesukoleka sastunnaru.. oka gorre ni kosthe .. himanshu gadi shirt shirt ani egirindu asalu topic vodilesi.. inko pilla pitre ganni koste asalu matter vodilesi agreement kavali anta..

 

Arey guvva leka dammu leka CRDA ni cancel chesinodini adugu nee daivam jailgun gadini agreement chupettu ani... bithiroda..

 

 

AP nundi one by one line katti 10ngestunte ante eedi langa mohaniki malli opportunities vunnay anta  ... aspiring state anta.. nuvvu nee bithiri yaakshit postlu

[TheBrahmabull]

Arey @bhaigan dhed damag .. adi emo thread oo naku telavadu.. aa thread esina gorre gallaki langa gallaki cheppu..

 

First CBN 2000 crores scam ani egirina daniki ekkadina proof vundemo

aa langa gallaki cheppu ... babai murder ayinappudu CBN/Lokesh/TDP vallu ani rechipoyirru ippatiki dikkuledu proof

same langa makkede gallaki cheppu.. Kodi kathi ayinappudu pichi hook postlu esinappudu proof emindi..

 

pichi dramalu 10ngakunda inko 2 yaakshit Loan approvals ... AP credit score anukunta esuko postlu...