Budget 2026 is now just a few weeks away and this time the government’s focus does not seem to be limited to just taxes or schemes. The discussion is about whether India is now going to take concrete steps to reduce its heavy dependence on China. The government can make major strategic changes especially in important sectors like electronics, energy, defence, machinery and raw materials.
In the last few years, the Corona epidemic, global war and supply chain disruptions have made it clear how risky it can be to be overly dependent on any one country. This experience has worked to change the thinking of India.
safe supply necessary
Till now, India’s policy has been to import goods from wherever it is cheap and easily available. But now the government has started understanding that cheap prices alone are not everything. If the same supply stops during a crisis, the entire industry may come to a standstill. The government is now working on the policy of de-risking i.e. reducing risk. This does not mean that imports will be stopped completely, but where necessary, dependence will be reduced and alternative routes will be created.
Import from China becomes the biggest concern
India’s imports from China are very high in many sectors. China’s share in electronics parts, solar panels, machinery, toys, umbrellas, glasses, agricultural equipment and many consumer goods is very high. In some areas the situation is such that 80-90 percent of the goods come from China. This is the reason why the government has identified about 100 such products in which dependence on China can be reduced by increasing domestic production.
What can the government do through the budget?
The government can take many steps in Budget 2026. On one hand, domestic companies can be encouraged, while on the other hand, custom duty can be increased on some imported goods. The objective is to make manufacturing goods in India more profitable. Along with this, schemes like PLI can be further strengthened in sectors related to electronics, automobile, steel and green energy, so that companies can manufacture deeply in India.
Mobiles are being made, but the parts are from outside.
India has today become a major power in smartphone production, but the reality is that important components of mobiles like semiconductors, displays and camera modules still come from outside. The government’s effort is now not limited to just assembly but to establish the entire supply chain in India. Electric vehicle and battery plants in states like Tamil Nadu are being considered a big step in this direction.
Strategy changed in energy sector also
In the case of oil and gas, India is still dependent on imports, but now the government is adopting a policy of taking supplies from many countries instead of depending on a single region. Along with this, emphasis is being laid on renewable energy, solar, wind and green hydrogen, so that the global oil crisis has less impact on the country’s economy in future.
New technology, new dependency
In the era of electric vehicles, batteries and green energy, new types of dependencies are emerging. India’s self-sufficiency in minerals like lithium, cobalt and rare earth minerals is very low. The government is now working on promoting investment, supply agreements and recycling in mineral assets abroad. A national mission has also been started for this, in which an investment of thousands of crores of rupees is proposed.
Self-reliance is most important in defense sector
Dependence on imports in the defense sector is directly related to the security of the country. This is why the government has started giving priority to domestic defense production. Now Indian companies are being given more opportunities in defense procurement and export routes are also being opened, so that companies can produce on a large scale.
Experts believe that just increasing the tax on imports will not work. The real need is to develop technology, skills, finance and capacity for large-scale production. If India really wants to reduce its dependence on China, then companies here will have to be strengthened at every level, from design to manufacturing.
What will change after Budget 2026?
From Budget 2026, it is expected that the government will take decisions keeping the risks in mind. The policy now will not just be to reduce costs, but to increase economic security and strategic strength. If this plan is implemented properly, then in the coming years India can not only reduce its dependence on imports, but can also become a strong global manufacturing hub itself.
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