- Small scale Indian industries are the worst hit by Chinese products. Currently 11 crore Indian’s livelihood is depending on ‘Micro, Small and Medium Enterprises’ (MSME) sector.
- Mainly there are 12 types of products produced by MSME sector. Sadly, most of the imports from China are also these 12 types of products.
- There is a big trade deficit between India and China. In 2015-16 Financial year, India’s imports from China are worth 61 Billion dollars, whereas India’s exports to China are just 9 Billion dollars.
- Many Indian Toys industries were closed because of the vast imports of cheaper Chinese toys.
- Many Chinese products such as fire crackers, plastic toys are found to be Health and Environment hazard, because of the use of low quality materials in the making.
- Chinese industries doesn’t spend much money on innovation, research and development, rather they just manufacture imitation goods whenever new products are innovated in other countries. Indian industries do spend money on research and innovation, hence their products are a bit costlier. So, it is morally incorrect to create a competition between Indian and Chinese goods.
- Though China is profiting a lot from exporting its goods to India, China is publicly supporting Pakistan and is against India in International summits.
- India cannot put a ban on imports of Chinese products as we are a part of the ‘World Trade Organisation’ (WTO).
- Chinese products are cheaper. If we ban Chinese products, customers will have no choice and have to buy goods at higher rates.
- With no competition, Indian goods manufacturers may rise the prices.
- We are also importing primary goods from China like computer hardware, electronic components etc. These primary goods are used by Indian industries to make final products. If we ban Chinese products, Indian industries have to purchase these components from other countries at higher prices.
- At present, India has no good alternatives to some of the Chinese products.
- India earns large sum of money by imposing Anti-dumping duty on specific goods imported from China.
- If we ban Chinese products, China may ban Indian products. If it happens, It’ll be a blow to Indian industries like TATA motors that have a good market in China.
- Chinese goods are cheaper mainly because of ‘Large scale production’ and ‘cheap labor’.
- ‘Obra’ village in Bihar officially imposed ban on Chinese goods.
- ‘The Confederation of All India Traders’ (CAIT) has claimed that the sale of Chinese goods in the Diwali season, 2016 was down by 60% as a result of the social media campaign urging people to boycott Chinese goods.
We cannot ban import of Chinese products because of the WTO regulations. We should utilize the opportunity of importing some goods at cheaper rates, and we need to protect the interests of Indian manufacturers as well. We need to balance these two things. However safety laws should be more strict. We should totally avoid the import of products that are Health and Environment hazard.
There is a dire need to decrease the trade deficit between India and China. Though we can’t ban import of Chinese goods completely, individuals have a choice to not buy Chinese products and thereby can support Indian industries.
Afterwords :- Do you think Chinese products affect Indian industries? Express your opinion in the comment section below.
Photo credits :- Rusty Clark
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