Impact of boycotting Chinese products on Indian economy

Why there is a need arose to boycott Chinese products

Yes, it is the time we have to start boycotting China products. Imagine if our forefathers has not sown the seeds of the swadeshi movement and had not carried it out believing it to be impossible, we would still be living under the shadow of the Britishers or destroyed in the world war. And we don’t start boycotting Chinese product a time will come where our India will again become slave. The point being anything we do today will affect the future of our country. Therefore we should boycott China and its products and should start now. The main reason behind this is China’s growing dominance and arrogance. The reasons for which it believes itself to be a world power that no one can oppose.

How Indian economy will grow in order to boycott Chinese products

1. Boycotting Chinese products encourage make in India Champaign which lead India to produce more products.
2. China accounted for over 5% of India’s total exports in financial year 2019-20 and more than 14% of imports. Meaning, India runs a huge trade deficit with China, the biggest exporter to India. If India boycotts Chinese products it encourages employment in India.
3. India has approx. 23.5% unemployment rate, Made in India encourage new talent of India with more stat-ups.
4. In India, as per census 2001, about 307 million people have been reported as migration by place of birth. People move from their birth country in order to get better jobs with good package boycotting china’s product will be a better opportunities for young talent to work in the country and for the country.
5. If India boycott Chinese product it will be a huge loss for the China because according to 2018-19 data China earns approx. 4.98 Lakh crore from India. Chinese products have 90% share in India’s 37,916 MW Solar Power market and it will be a big loss for china.

Is it really possible to boycott Chinese product in India and what are the negative impacts of boycotting the Chinese products on Indian economy?

It is technically possible to boycott Chinese products, but it would result in loss of income for both countries, more for India.

Reasons:

1. India and China have trade of more than $100 Billion, which is really a huge amount, more than GDP’s of many countries.
2. Out of $100 Billion, 65% is by China, remaining is by India; of course china is greater in numbers in every aspect, since they are the manufacturing Hub of the world.
3. Boycotting Chinese product will result in Indian trader’s loss, as they first purchase this all stock from China, and they sell in India. If boycotted, it means Indians are destructing their economy by themself, as those traders contribute to Indian economy by paying tax.
4. Boycotting will lead to joblessness of those Indian traders, as China has already sold this stock to these traders. So, those traders will suffer most, and so India.
5. The whole smartphone market of India is almost occupied by Chinese multinational companies which generates huge revenue for Indian economies. If boycotted, India is itself going to suffer a lot. Until India launches its own new products with good price and attractive feature.

Things required to kept in mind in order to boycott Chinese products

If we boycott Chinese products India have to face some major challenges and these challenges are:

1. If we boycott Indian companies that uses Chinese raw material then I assume there are few Indian companies left. For example-TVS and Bajaj both uses Chinese raw material in automobiles. Should we stop using motorcycles of Bajaj and TVS?
2. India is a member of WTO (World Trade Organization) and according to rules of WTO we can’t do discrimination between trading partners. If we do so then get ready to face the responses from WTO.
3. India is the third largest exporter to China and this will impact our trade. Companies import raw material from China and then export the furnished product in other countries and made profit, if we stop those imports then the trade deficit will increase.

Atmanirbhar Bharat

Atmanirbhar Bharat means self-reliant India is the vision of the Prime Minister of India Narendra Modi of making India a self-reliant nation. The first mention of this came in the form of the ‘Atmanirbhar Bharat Abhiyan‘ or ‘Self-Reliant India Mission’ during the announcement of the coronavirus pandemic related economic package on 12 May 2020. Finance minister further clarifies “self-reliant India does not mean cutting off from rest of the world”. It simply means to make India an Independent country from all the nations and rebuild the Indian economy. This will give India time to strengthen its domestic manufacturing and encourage local talent of India, hand-made products, local culture. Instead of buying lights on Diwali we can buy ‘deeps’ that give employment to many in rural.

Why Chinese goods are so cheap that attracts Indian buyers and effect the Make in India Campaign

The reasons behind this are:

• China uses the poor quality of material for making the products cheap and it attract Indian because of its cheap rate in comparison of other Indian products. For example the lights we used in the Diwali festival in 2019 say, it works only in the Diwali, 2019.
• China uses a kind of advertisement which automatically creates demand for these products.
• In some case there might not be demand but there is excessive supply which reduces the price of goods and thus creates artificial demand.
• Absence of proper environmental laws, we seriously have no idea what laws there are actually on ground because we see what they show or want us to believe. India can only cut 30% of Chinese imports.