Illustration: Tang Tengfei/GT

India is looking to increase barriers on imports from Asian countries including ASEAN nations and South Korea. The plan mainly targets Chinese goods re-routed to India from these countries, Reuters said Tuesday, citing anonymous Indian officials.

The major consideration behind India's plan is the protection of its domestic industries from rival competition, and China is being used as an excuse for New Delhi to walk back into its protectionist shell.  

As COVID-19 pandemic continues to tear through India, leaving economic upheaval in its wake, New Delhi faces enormous pressure to boost its virus-hit economy and nascent industrial lines.  

Since the bloody border clash in middle June, rampant anti-China sentiment has also been putting pressure on New Delhi. India has used the border dispute as an excuse to roll out a slew of protectionist measures that target at Chinese technology companies and bilateral trade. 

According to the report, the protectionist measures are expected to mainly impact Malaysia, Thailand, Vietnam and Singapore - members of ASEAN, with which India has a free trade agreement (FTA). An Indian official was quoted to have said that FTAs could face a review.

India is also reportedly worried about heavy trade flows from South Korea.

It remains uncertain what negative impact India's protectionist plan will have on many Asian countries, but it is clear that once New Delhi introduces measures to place barriers on imports, it will have taken a further step toward trade protectionism.

ASEAN is India's fourth-largest trading partner. India's trade with ASEAN totaled $81.33 billion in 2018, accounting for roughly 10.6 percent of India's overall trade that year. Bilateral trade topped $96.79 billion last year.

In terms of both tariff and non-tariff measures, India is already a highly protected economy. Moving further toward trade protectionism could shelter some related industries in India to some extent, but it definitely would harm the interests of Indian consumers and damage the country's relations with its economic and trade partners. 

In the long run, that is not conducive to the development of its economy and foreign trade, and it would result in consequences such as systemic distortions.

Last week, India's trade ministry issued a notice restricting inbound television shipments by requiring importers to obtain special government licenses. India's moves toward de-globalization will only further divorce it from the global value chain and increase the COVID-19 pandemic's impact on the country.

Last month, India again rejected to participate in the Regional Comprehensive Economic Partnership (RCEP). If India really uses China as an excuse again to impose protectionism on ASEAN countries and South Korea, harming their economic interests, it will undoubtedly push important strategic partners further away. 

As the RCEP circle grows bigger and brings increasing benefits to participating countries, India can only act as a bystander and swallow the bitter fruit of protectionism.

The author is a professor and head of the Economics and Trade Department with the College of Economics and Management at China Agricultural University. bizopinion@globaltimes.com.cn