Should Indian’s Stop buying Chinese Products?

Should Indian’s Stop buying Chinese Products? We can ban Chinese Products in Real world ?

Firstly,

Can any Country ban all products from a particular country (For us China) ?

NO, you read it right.

No country can ban all the products from a particular country which is member of WTO(World Trade Organization ).Of-courses you can Restrict specific products under Anti  Dumping Policy or Quality Parameter Etc.

Non WTO Countries Can do this. However 164 major countries are member of WTO

Let's a look at some of the sectors which India is good at and lets us also understand what can go wrong if we ban products from china. I will try to pick a few sectors one by one and then discuss the pro and cons of the ban.

Software Sector:

You peoples surprised how this sector can be affected,

 China accounts for 14.2% of world Electronic and Electrical Exports $972 billion and India Imported $50.38 Billion(nearly four trillion rupees) which is 56% of total Electronic imports from the World.

Below are the 15 countries that exported the highest dollar value worth of electronic circuit components during 2019.

1.    Hong Kong: US$134.5 billion (18.7% of exported electronic circuit components)

2.    China: $102.2 billion (14.2%)

3.    Taiwan: $100.4 billion (13.9%)

4.    South Korea: $79.1 billion (11%)

5.    Singapore: $76.9 billion (10.7%)

6.    Malaysia: $44.8 billion (6.2%)

7.    United States: $40.1 billion (5.6%)

8.    Japan: $27.8 billion (3.9%)

9.    Vietnam: $26.1 billion (3.6%)

10. Philippines: $19 billion (2.6%)

11. Germany: $14.9 billion (2.1%)

12. Netherlands: $14.6 billion (2%)

13. France: $7.7 billion (1.1%)

14. Thailand: $7.6 billion (1.1%)

15. Ireland: $7.2 billion (1%)

Let us Look at it the other way around we imported only $50.38 billion worth of Hardware and India’s IT service industry currently stands at $177 billion with exports amounting to $136 billion and the industry employees around 4.1 million people.

India is known for its exports of IT services and one of the main reasons for such growth as they have opened its economy to the world in 1991.

India is not only country who imports from China; China has been sourcing components from south Korea and Japan to make finished components.

why can’t India make their own hardware? , yes, of course, We can and We  will eventually make. However, In order to make this happen we still need to source or import components from the world including China. From the above data we are having option countries like South Korea , Vietnam  etc. for instant solutions.

Exports Sectors:

According to WITS,

The top five countries to which India exported 2018 along with the partner share in percentage are:

1. India exports to United States worth US$ 51,629 million, with a partner share of 16.02 percent.
2. India exports to United Arab Emirates worth US$ 28,523 million, with a partner share of 8.85 percent.
3. India exports to China worth US$ 16,366 million, with a partner share of 5.08 percent.
4. India exports to Hong Kong, China worth US$ 13,132 million, with a partner share of 4.07 percent.
5. India exports to Singapore worth US$ 10,444 million, with a partner share of 3.24 percent.

The top five countries to which India imported goods 2018 along with the share in percentage are

1. India imports from China worth US$ 90,398 million, with a partner share of 14.63 percent.
2. India imports from United States worth US$ 38,904 million, with a partner share of 6.30 percent.
3. India imports from Saudi Arabia worth US$ 34,343 million, with a partner share of 5.56 percent.
4. India imports from United Arab Emirates worth US$ 32,119 million, with a partner share of 5.20 percent.
5. India imports from Iraq worth US$ 28,444 million, with a partner share of 4.60 percent.

As you can see china is top on import list, so please not buy Chinese product from this bully Chinese company.

India’s Export to China (inch Hongkong) is $28.04 Billion which accounts for 8.68% of Total Indias Export in 2019. Our exports to China mainly consist of Organic Chemicals,Ores, Slag and Ash, Natural Pearls, Precious stones and Precious metals, Cotton, Including Yarns and Woven, Fabrics thereof, Fish and Crustaceans, Mollusks and Other Aquatic Invertebrates. Whereas China’s Export to India Electric Machinery, Sound Equipment, Television Equipment and parts thereof, Nuclear Reactors, Boilers, Machinery and Mechanical Appliances and Parts, Organic Chemicals, Plastics and articles thereof, Articles of Iron and Steel Product label

Furniture Sector:

China is the largest exporter of different kind of furniture in the world.

According to estimates, China's export to India stood at around USD $1.72 Billion which is 56% of total.

The position of India in the sector is weak as the sector is largely fragmented and is in the unorganized segment. The size of the domestic furniture industry is about USD 5 billion. The exports stood at around USD 1.5 billion.

The government earlier this month imposed similar restrictions on imports of refined palm oil, a move which would discourage the inbound shipment of the commodity from Malaysia.

India SME and Machinery and Innovation:

China is set to pay a heavy economic price after a violent clash with India at Galwan Valley, with chief minister Uddhav Thackeray-led Maharashtra already pausing three Chinese projects worth Rs 5,000 crore. Along with the Maharashtra government, Yogi Adityanath’s Uttar Pradesh, and Manohar Lal Khattar’s Haryana have also adopted a tough stance on imports from China, and have stepped up to boycott.

Manufacturing (Make in India) needs machines, India is a price-sensitive market European machines are mostly way expensive for Indian Entrepreneurs with 1/5 price in china with some tweaks and modications Chinese machines can do the same output that a European made high tech machine produces. Low initial capital investment and high ROI makes it very easy to grab Entrepreneurs’ attention. $15 billion worth imports of machinery are from China (17.6% of its total Import from China)

Chinese Investment in Startups:

Indian Entrepreneurs have been funded by foreign investors as banks or Govt do not fund risky businesses, startups today start their business with the asset-light model leaving no option but to wait for Venture capitalists from foreign investments. By deleting these Apps or not using startup services them you are likely to Kill entrepreneurship in India

India's top startup unicorns - including Paytm, Zomato, BigBasket and Dream11 - that count Chinese investors among their largest backers are likely to face delays in raising capital after the government said all foreign direct investments from the world's second-largest economy would be subject to its approval first.

Chinese investors - both strategic and financial - have pumped in $3.9 billion in 2019, up from $2 billion in 2018,Acoording to ET

Alibaba has invested in payments group Paytm and food-delivery service Zomato, while fellow Chinese internet giant Tencent has backed car-hailing app Ola and Byju’s, an education start-up.  Funds like Shunwei Capital and Morningside Ventures have also become more active, investing in start-ups including bike taxi apps Rapido and ShareChat respectively.

Chinese Companies  Plays Important Role in Following Sectors for India’s Growth:

Renewable Energy, Solar Panels and its Raw material Plants and Machinery from Wood to Plastic and Steel to Chemicals. Aviation and Automobiles (especially Electric Vehicles and its core components) Telecom, Electronics and its components  (Television, home appliances) Pharma and API’s

Sectors which India should focus on making in India are:

Chemicals Agrochemicals Pharma/APIs Consumer durables Auto component

Conclusion:

It is a double edge sword.

Britishers ruled India for 15o+ years and Indians are completely to buy or trade with the UK. Are India’s Getting misleading by Marketers or People with hidden benets are taking advantage of such a situation.

So support Indian Government for “ATMA NIRBHAR BHARAT”

*I REQUEST YOU ALL TO SUPPORT INDIA...OUR COUNTRY IS IN GREAT TROUBLE AND WAR IS GOING TO OCCUR IN GALWAN .SUPPORT YOUR COUNTRY BY BOYCOTTING CHINA PRODUCTS*

JAI HIND !

Also Read: Boycott Chinese Products