Focus: GS-III Indian Economy
Why in news?
Centre is said be debating adopting tough measures against China over the border standoff and act against Beijing’s interests in areas that do not add value to India’s economy.
However, there is also the concern that Government needs to ensure that investments critical for accelerating growth should not be derailed.
- Growth concerns remain a top priority for the economy and any move that affects investments would hamper recovery from the devastating impact of the lockdown.
- Chinese companies have heavily invested in multiple sectors of the economy and shedding the linkages overnight would be a tough job.
- Apprehensions have also been triggered by the fact that several companies source raw materials from China and any disruption, particularly in the critical pharmaceutical sector, may impact manufacturing of drugs.
- India depends on China for 70% of bulk drugs and drug intermediates requirements, according to industry estimates.
-Source: Times of India