The Narendra Modi-government will gradually try to reduce the country's dependence on Chinese goods through tariff measures, trade regulations and investment check rather than take any hasty steps against Chinese imports as that would have a disastrous impact on MSMEs.

The officials of the finance and commerce ministries on Friday held discussions on the tariff issues and sought comments from other ministries before formalising the proposals for action.

The different departments of the government were also in touch with the industry associations .

Sources said “the government action would not be a knee-jerk reaction” to the growing campaign to boycott Chinese goods.

The MSMEs said a hike in import duty or placing of non-tariff barriers on items can make input cost expensive by 10 per cent to 40 per cent. Since the small companies are already reeling under the coronavirus impact, any further blow will be a death knell.

The MSMEs suggested to the government to chart out a medium- to long-term plan to support local industry so that they can eventually replace Chinese imports.

Former All India Manufacturers Organisation (AIMO) national president K.E. Raghunathan said the government should not resort to ad-hoc measures such as raising import duty and suggested setting up of committees to draw five-year plans for the gradual substitution of imports.

The measures would be taken over the next few months, the official said.