The Government of India is trying to respond to the tension on the border with China through trade. The government is also under pressure to take such steps amid slogans of a boycott of Chinese goods. It is being said that China will be taught a lesson through this. There are also pictures floating on the social media of burning equipment designed in China like TV. Union Minister Ramdas Athawale has demanded that restaurants that sell Chinese food should be banned, while Indian chefs work in them and use agricultural products from India. Even though the news of the Chinese army’s brutal attack on Indian soldiers is a natural concern for Indians, it is not the right way to respond to China through trade. Learn how…
No loss due to trade imbalance: An argument being made about a boycott of Chinese goods is that India is a victim of trade imbalance in trade with China. Due to trade deficit or surplus in trade with any country, no country’s economy is strong or weak. For example, we can see 25 countries with which India is in the trade surplus, such as America, Britain and the Netherlands. But this does not mean that India’s economy is better than these countries. Apart from this, there are 22 countries including China, with which India is in the trade deficit, such as France, Germany, Nigeria, South Africa, UAE, Qatar, Russia, and South Africa, etc. Talking about the trade imbalance with China, Indian customers decide to buy goods from them personally. They are japan, Do not bet on goods from France or India only in terms of price and convenience. It is clear that on the one hand Chinese companies are benefiting, then Indian customers are also benefiting.
Poor Indians will be affected: If the purchase of Chinese goods is banned, then the poor people of the country will be the most affected, for whom it is difficult to buy expensive goods. Suppose customers buy AC from Japan instead of AC from China, then they will have to pay more. In such a situation, they will have two options that they either do not buy expensive goods like AC or they buy low-quality AC of Indian companies. In this way, only the poor section of the country will have to bear the loss.
India’s export business will also be shocked: If the import of goods from China is stopped then it will also hurt the producers and exporters of India. It is true that some Indian businesses are harmed by imports from China, but it is only those who are weak in competition. However, it is better for competent traders. This is because many companies import raw materials from China for their production. In such a situation, if there is a ban on imports from China, then the availability of raw materials to them will be reduced.
India is at a disadvantage due to stopping imports: In the country, China is being talked about giving a blow to the business world, but it will also cause a big loss to India. The reason for this is that the total share of China’s exports is only 3 percent of what India imports from China. In contrast, India’s exports account for 5 percent of goods shipped to China. From this point of view, India will be at a disadvantage if it stops trading with China.
India’s credibility will be low: Contracts given to Chinese companies are also demanding withdrawal. This may cause India to shock China for some time, but its credibility crisis will happen in the long run. Especially India’s efforts to get FDI will be affected.