The Indian government is ready to keep a close watch on the goods coming from China. Just as Israel took action against Hezbollah by taking advantage of the shortcomings in the pager supply chain. After that incident, the Indian government has become very cautious. This is why the Center has planned to get items like smart meters, parking sensors, drone parts and laptop-desktops checked from 'reliable sources'. These electrical equipment may be brought under the mandatory requirement of testing from reliable sources. Earlier, the government had taken a similar step in the matter of CCTV.
Government alert regarding Chinese goods
The government aims to keep a close eye on the goods that are part of the Internet of Things (IoT). There is a fear that companies and agencies across India's northern border may get important data from these devices. In such a situation, after finding flaws in the security system of surveillance cameras, the government has now made checking of cameras mandatory. For this, necessary certificate will have to be obtained from the prescribed lab. Apart from this, some special parts will also have to undergo certification from agencies. Only after this will Indian or other manufacturers be able to use them.
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Preparation to bring 'System on a Chip' under scrutiny
The 'System on a Chip' or SoC is also under scrutiny. It is an integrated circuit (IC) that contains most of the components of an electronic system on a single chip. A source said our aim is to create a reliable supply chain for electronic goods as we do not want any weak link. Foreign companies can take advantage of this. Especially when there is a hostile neighborhood around us.
This is a central government scheme
The government was earlier trying to stop imports from China by erecting a tariff wall, but now it has started emphasizing on technical standards. This is because there are limitations on the imposition of tariffs by the government under the WTO's IT Agreement-I (ITAI). Additionally, Chinese companies produce cheaper equipment and can capture the market even by overcoming the high tariff wall.
Just as the mandatory standards of CCTV were first implemented for government procurement and then implemented in the retail market also. Similarly, the same strategy can be adopted in other areas also. This will give Indian sellers time to prepare for the change and develop the necessary supply chains to ensure compliance with standards.
Last year, the PC and laptop industry had protested against government control on imports. His argument was that this would reduce supply and increase prices, which would impact consumers. However, the government believes that bringing changes gradually would be more beneficial.
