India's government plans to promote the manufacturing of selected products, especially lines in which China enjoys a big share in the global market, as part of efforts to reduce imports and push exports, a cabinet minister said on Monday.
The government aims to attract foreign investments in pre-identified areas, promote joint ventures and support local businesses to expand India's share of global markets, Nitin Gadkari, India's minister for MSME (micro, small and medium enterprises), told a virtual conference.
"There is an opportunity for India in sectors where China enjoys a big share in the global market," he said.
In the last few months, the government has announced production-linked incentives for manufacturing of electronics, medical devices and pharmaceutical products while putting restrictions on imports of Chinese products.
India expects its balance of payments to be "very, very strong" in the current year, on the back of stronger than expected exports and a fall in imports, Commerce Minister Piyush Goyal said on Monday.
"Exports have shown a good turnaround. We are in July at about 91% export level of the previous year, July 2019, figures," Goyal said at an industry event.
"So broadly, our balance of payments this year is going to be very, very strong."
India posted a trade surplus of $790 million in June, its first in over 18 years, with imports plunging as the coronavirus pandemic depressed domestic demand for crude oil, gold and other industrial products, reflecting a slowing economy.