How Much Business Of China Can Affected If India Boycotts Chinese Goods ?
Majorly India imports toys, household items, mobiles, electric and electronic goods, and cosmetics which has a value of $17 billion, and now it is believed that all these product categories will be replaced by Indian made goods creating a loss of $17 billion.
After covid19 hit in India, phrases like 'vocal for local' and 'Indian Goods-Our Pride' are common for all Indians. Other than COVID, tensions at LAC India-China have been a major highlight in India however, the decision of nationalists has a louder noise than the bullet fires at the border. Nationwide people have decided to boycott Chinese products, technology, and mobile applications.
Majorly India imports toys, household items, mobiles, electric and electronic goods, and cosmetics which has a value of $17 billion, and now it is believed that all these product categories will be replaced by Indian made goods creating a loss of $17 billion. "We, at 'Federation of All India Vyapar Mandal', are advising our members to clear their stocks of Chinese products and refrain from placing fresh orders. We are also requesting the government to restrict e-commerce companies from selling Chinese products," said V.K. Bansal, the association's general secretary.
The Confederation of All India Traders (CAIT), has decided to step up its movement against the boycott of Chinese goods, under its campaign 'Bhartiya Samaan-Hamara Abhimaan'. It released a list of over 450 broad categories of commodities, comprising 3,000 Chinese products. CAIT has also written an open letter to several celebrities, asking them to stop endorsing made-in-China products.
The fact remains that there is ample scope in policy-making to stop the Red Dragon surge. Experts say that WTO rules allow India more room to protect its sectors. For example, India used non-tariff barriers, like quality standards, against 300 Chinese products, compared to the US’ imposition on 6,000 goods imported from China. In the recent past, as China stalled Indians’ entry in the former’s telecom and infrastructure projects, India used the WTO clause of reciprocity to initiate similar action against Chinese companies.
Chinese products are very huge in India, especially in the smartphone market. If tech YouTubers, who turned into influencers take a stand then it's possible. But that's not at all a reality. Of course, the crucial question is whether this import substitution needs to be done in one go, or a calibrated fashion. CAIT feels that it can be achieved by December 2021, at least to some extent. Prabir De, Professor, RIS, thinks that a phased manner may be the best approach. “This will give time to the Indian companies to be ready to produce most products. If we shut down imports now, we will be the sufferers,” he explains. We aren’t sure whether those who were forced to become traders because of the onslaught of Chinese imports will return to manufacturing at such short notice.
Research says, if Indians boycott major exports of China it will create a loss of $17 billion to them but for Indians, consequences will not be much in favor. It will increase the inflation rate and might create conditions of recession. India's trade deficit may get low
while creating political imbalances at the international level (WTO, UN). Devices like mobile and TV may get costlier and a big portion of our economy could not have access to the same. Besides, our PM's dream of digital India may lag as boycott has already begun for Chinese technology.