IS IT POSSIBLE TO BOYCOTT CHINESE PRODUCTS AMID ONGOING INDIA-CHINA TRADE DEFICIT?
Boycotting Chinese products in India amid the border stand-off has become a risen issue but appears to have eyes bigger than one’s stomach.
The report says that the bilateral trade between China and India is valued Rs 6 lakh crores, of which India’s export shares are valued at Rs 1.17 lakh crores. India imports goods and services worth Rs 4.9 lakh crores from China.
WHY IS IT TOUGH TO BOYCOTT CHINESE PRODUCTS?
As stated by ZeeNews in a report, the investment made by Chinese companies in India was valued at Rs 12000 crores in 2014 and has climbed up in the scale to Rs 60000 crores. However, above those investments, China has also invested in India via third party participation which when estimated has flare up to Rs 2 lakh crores. China has also invested a huge amount in many Indian startups in the past 2 years.
Moreover, China has always been an active investor in Indian startups over the past few years. Of the 30 big startups established In India, china has invested in 18 of them. The Rs 15000 crore investment made by China in 2018 had scaled up to Rs 29000 crore in 2019. A substantial part of Chinese investment has been in the domain of media, e-commerce, social media, logistics, and financial technology. Ola, Big basket, Byju, OYO, Paytm are some of the companies in which the Chinese companies has invested a huge amount.
The market size of smartphones in India is valued at Rs 2 lakh crore, of which 72% of market share is captured by Chinese smartphones. The market share of Chinese companies in the smart television market is 45% and 9% in the non-smart television market.
Looking into the Indian companies’ status in a larger picture and the position of Chinese products in the Indian market, it seems to be impossible to boycott them. In this era of globalization, a country like China that has invested a substantial amount in India is an added advantage to the developing economy.
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