Corporate India gears up to hedge China supply risk amid Covid surge

The surge in Covid cases in China has raised concern over supply-chain disruption, especially for Indian companies that import critical components and raw material from the neighbouring country. Between April and October this year, imports from China grew nearly 18 per cent year-on-year to touch $60.27 billion, according to data from the Ministry of Commerce.

The sectors in India that import from China include pharmaceutical (pharma), automotive (auto), textile, engineering, and electronic goods. These sectors remain at risk, says Chokkalingam G, founder and managing director (MD), Equinomics Research & Advisory.

“While companies have realised the importance of derisking their business