The conflicts between India and China at LAC and the death of several Indian soldiers has emboldened the chairman of JSW group -Sajjan Singh Jindal to cut economic links with China. The main focus of the company is that no material should be imported from a country that is not friendly to India.
SURFACES REPORTER (SR) notes that with India’s various industries heavily dependent on China, it is a difficult choice. Mr Jindal while speaking with a mainstream media reiterated the same.
“It is not an easy route. The auto industry is dependent on China for 40% of components. The steel industry’s 100% refractories come from China. One approach is to say that war will be fought by our soldiers, and my job is to make steel at a cheaper price by buying from China. But another view is — look at the $100 billion opportunities that Indian companies should tap. There will be some pain in the short run. But see, I respect my country and my army. If they (China) have killed 20 of my soldiers, I’m not going to buy products from them and strengthen their armies more.”
He said that there might be over a billion dollars of imports that come from China at JSW directly and indirectly. But the group has recently put a restriction in all their purchases from the country.
According to him, when we import equipment from countries other than China, it definitely costs them around 10-15% more. But the company is negotiating or even sacrificing some cost for the short term. They believe that once there will be an increase in the countries capacities, the cost will naturally come down. He finds it a narrow-minded approach of those who think that there is no alternative.
Earlier, his son Parth Jindal, Managing Director, JSW Cement also assured that the group will completely cut imports from China in the next 2 years. Currently, the group imports USD 400 million worth of goods from China. This action was taken due to the recent conflicts between Indian and Chinese soldiers in the Galwan Valley.