Published on October 19, 2016
1. wwww.etailingindiaexpo.com Would China Boycott Boost India’s Economy? India is busy celebrating the festive season and Diwali is there at the end of the month. Meanwhile, encouragement to boycott Chinese goods has been spreading in the last few days on Indian social media. The boycott has not achieved success. Sales figures for Chinese products on the top three Indian online retailers in the first week of October hit a new record. The political relationship between the two countries can have a direct effect in the bilateral trade as well. Data from China’s General Administration of Customs says that India in September exported goods worth $922 million to China, while importing goods worth $5.4 billion from China. What will happen with the boycott of Chinese goods? Will it benefit India or just douse the fire on the burning sentiment of patriotic people? Possible benefits post boycott
2. wwww.etailingindiaexpo.com With the government focusing on “Make in India”, this may be the time to provide impetus to manufacturing sectors. However, this may require fast-tracking several pending economic reforms and easing the curbs for doing business in India. If by any means, India’s boycott slows down Chinese economy, global finance and capital would look for new growth avenues to invest. India is already the centre of attraction for multiple MNC’s can have a much bigger pie of global capital, which can fund its huge infrastructure requirement. If Chinese economy slows down, India can have a cheaper access to global crude which in turn result to lower input costs. Possible drawbacks post boycott China can follow a similar suit and ban India’s sizeable amount of export to its country. China had decided to open up its market for India’s pharmaceuticals. Indian iron-ore makes up the steel that underpins much of modern China’s infrastructure and cheap Chinese goods are enabling India’s emerging middle classes to lead a better life. The massive scale of resources needed for the Digital India initiative could be stifled without the availability of cheap imports from China. Chinese lightning and decorative items are used in almost every household during Diwali. The local business could take a massive hit by 75% if the growing trend to boycott Chinese products continues. Effect on e-commerce
3. wwww.etailingindiaexpo.com India is a big market and doing online shopping has become the irreversible trend in the new era. India’s ecommerce sites sell a lot of Chinese products from cell-phones, laptops, LCD to medical drugs and antibiotics. The recent boycott amazingly didn’t have much effect on online sales with Chinese mobile phone company Xiaomi selling half a million phones in just three days on major e-commerce sites like Flipkart, Snapdeal and Amazon. The commercial cooperation between the two countries is focused on e-commerce, service and financial investment. So, it would be interesting to see the future course of action of our etailers. Your opinion on it? While the government must protect country’s industrial capacities against proven cases of industrial dumping, does boycott serves the purpose? India aspires to be a global economic power and every measure taken will count for it to happen. Shall India take a step ahead to reduce the trade deficit with China or should it stop using their products?