చైనా వస్తువుల బహిష్కరణ సాధ్యం అవుతుందా?||Boycott China: Slogan vs Reality||
Taking economic retaliation against China for its aggression along the border is easier said than done. A surge in domestic sentiments against Beijing for the fatal border skirmish has led to fervent calls for a boycott of the Chinese goods but given the over-reliance of Indian consumers and large sections of industry on the hostile neighbour, these might just ring hollow.
Any policy change to tame the dragon by discouraging the consumption of its usually cheap products is fraught with the risk of raising costs for consumers, at least in the short term. For instance, after the pandemic broke out, the prices of many active pharmaceutical ingredients have increased anywhere between 6% and 167% (the highest is for Nimesulide) since January, as Chinese supplies got hit.
China makes up for about 45% of India’s electronics imports, one-third of its machinery and almost two-fifths of organic chemical purchases. As much as 90% of certain mobile phone components, 65-70% of active pharmaceutical ingredients (for making finished drugs) and over a fourth of its automotive parts and fertilisers are imported from China, according to a CII note prepared in February. China, as such, remains the largest import destination for India and Beijing’s goods trade surplus with New Delhi was as much as $47 billion in the first 11 months of FY20.
Also, industry executives say China makes up for about 72% of the Rs 2-lakh-crore domestic mobile phone market and Chinese brands like Xiaomi dominate here. Even Chinese or some Indian firms assembling such products in India import components from China. In the telecom equipment market, the share of the Chinese is about 25%. Since there are several Amercian and European vendors also in this segment, boycotting Chinese vendors is possible but telecom operators could see an up to 15% increase in their procurement prices. Also, the Indian operators will lose the attractive financing provided by Chinese vendors.
The Chinese account for about 45% of the Indian smart TV market and such products are 30-50% cheaper than the items sold by their rivals.
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చైనా వస్తువుల బహిష్కరణ సాధ్యం అవుతుందా?||Boycott China: Slogan vs Reality|| Taking economic retaliation against China for its aggression along the border is easier said than done. A surge in domestic sentiments against Beijing for the fatal border skirmish has led to fervent calls for a boycott of the Chinese goods but given the over-reliance of Indian consumers and large sections of industry on the hostile neighbour, these might just ring hollow. Any policy change to tame the dragon by discouraging the consumption of its usually cheap products is fraught with the risk of raising costs for consumers, at least in the short term. For instance, after the pandemic broke out, the prices of many active pharmaceutical ingredients have increased anywhere between 6% and 167% (the highest is for Nimesulide) since January, as Chinese supplies got hit. China makes up for about 45% of India’s electronics imports, one-third of its machinery and almost two-fifths of organic chemical purchases. As much as 90% of certain mobile phone components, 65-70% of active pharmaceutical ingredients (for making finished drugs) and over a fourth of its automotive parts and fertilisers are imported from China, according to a CII note prepared in February. China, as such, remains the largest import destination for India and Beijing’s goods trade surplus with New Delhi was as much as $47 billion in the first 11 months of FY20. Also, industry executives say China makes up for about 72% of the Rs 2-lakh-crore domestic mobile phone market and Chinese brands like Xiaomi dominate here. Even Chinese or some Indian firms assembling such products in India import components from China. In the telecom equipment market, the share of the Chinese is about 25%. Since there are several Amercian and European vendors also in this segment, boycotting Chinese vendors is possible but telecom operators could see an up to 15% increase in their procurement prices. Also, the Indian operators will lose the attractive financing provided by Chinese vendors. The Chinese account for about 45% of the Indian smart TV market and such products are 30-50% cheaper than the items sold by their rivals.