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Boycotting china completely can’t be possible now, Yes it’s true, let’s analyse with the very basic point, In the fiscal year 2019 the exports from India to China are $16.76 billion and the imports stood at $70.3 billion with trade deficit(the difference between imports and exports) of $53.6 billion. The most common imports from China are consumer goods, solar cells, smartphones, auto components, toys and sports equipment.
Why is India importing China products in billions of dollars?
It all started with us buying these Chinese products at low cost in the market,
Let’s take the example of smartphones.
The top 4 of 5 brands in India are Chinese owned ones like Xiaomi, Vivo, Realme, Oneplus. China has a 72% share in the Indian smartphone business.
This case is not only limited to electronic items but also the same for all household products
Why is “MADE IN CHINA” popular in India?
China products come at a cheaper rate compared with domestically manufactured products( products made in India). China products are available in the market at 10-70% cheaper than domestic products.
But why china products are cheaper than Indian products!
- As we all know that quality is the first and foremost point
- For manufacturing, industries purchase bulk amounts of raw materials. Buying in bulk amounts costs less.
- Cheap labour, China is in the 1st place of the world’s population, 2nd place in GDP growth rate and the centre for the global supply chain. Many manufacturing industries are in China and every company meets its labour and workforce requirements.
- China gives more business loans for startups and manufacturing firms so that many companies come up with different types of products.
- Finally the last but not the least point is that China follows a VAT (value-added tax) system. It means value added to the product in the distribution cycle from the raw materials to the final stage of the product. At last consumer( customer) needs to pay the whole tax while buying. So in this way companies enjoy the tax exemption VAT system.
These are the reasons why manufacturing firm’s production, exports and profit’s are high in the process of making these cheap products.
Is boycotting Chinese products possible?
At an instant boycotting Chinese products can not happen, boycotting means we are not going to buy these things! So if we stop buying these products imports will stop but where we substitute the manufacturing of these items! Domestically? But we can’t!
Let’s see how
As we all are habituated to buy these products at less cost, locally manufactured products cost more than Chinese ones. So most of the middle-class families won’t go for it and the Chinese items give value to Indian money.
India also can not boycott these Chinese things directly because we depend on China for raw materials for the production of many products. Instead of boycotting, the government can increase import duties( increases tax on imports). If it does the cost of the products will touch the greater number and we have to pay more for our next smartphone, TV, AC and other items and this will be insane in the ongoing pandemic.
There is one more thing that we need to look into!!
According to Piyush Goyal (Union Railways minister), between 2015 to 2019 FDI (Foreign Direct Investment) of China in India stood at $1.8 billion.
As per gateway house report 2020, China has invested around $4 billion in the Indian startups and by 2020, 30 unicorns of India 18 are Chinese funded which includes Paytm, Flipkart, Byju’s, Ola and Big Basket etc.
On the other hand, we import a huge amount of raw materials from china for the auto and pharmaceutical industry and for the production of many other products and it is the nature of global business each and every country depends on other countries for the products which are not manufactured locally.
Boycotting china completely is not possible but we can reduce the imports or usage of Chinese products slowly and it is possible through Modi’s “Atma Nirbhar Bharat” ( MAKE IN INDIA ). The main aim of the Atma Nirbhar Bharat is to produce more products in India which we are importing from other countries and providing employment to several jobless people and making India self-reliant in many prospects.
The one thing that we can do here is supporting Indian products so that the local production will step up, importing from china reduces slowly, we are going to have quality products in our hands, we become the people who produced many jobs for the ones who are starving for their livelihoods and we add colours to many entrepreneur’s imaginations.