Govt clarifies norms for goods procured from China, Pakistan

After the Chinese aggression on the Line of Actual Control in-mid June last year, the government on July 23, 2020 made an important amendment to its public finance rule that virtually barred all government agencies from procuring goods and services from bordering countries such as China and Pakistan, citing national security as the grounds. “It is to be noted that in spite of the border tensions, trade relationships are still continuing. Though India’s imports from China have dipped approximately by 20%, its still high in terms of absolute numbers and trade deficit additionally is in favour of China,” said Divakar Vijayasarathy, founder and managing partner of consulting firm DVS Advisors LLP said. “ Further there are many raw materials for which the Indian industry is entirely dependent on China for supply with no alternative. Hence a complete ban or reduction is not possible.”