Indo-China relations have not been on the track now a days. China's unconditional support to Pakistan, then blocking India's entry in NSG group, threatening India to stop the water of river Brahmputra, and lately also blocking India's bid to ban Jaish-e-Mohammed Cheif terrorist Masood Azher are the main reasons which determines the coarse of bitterness between both countries. Also there have been military and territorial disputes from long time ago between both countries.
In the recent developments post URI attack a wave of patriotism has been swinging around the country, along with anti Pakistan and anti china sentiments. A message is being circulated in social media to not to buy chinese products, some political groups are actively supporting it too, but if we look at the whole picture this whole boycott idea seems a bit unpractical.Here we explain the six reasons why #boycott_china is'nt a good idea:-
1.) Some people are arguing in social media that government should ban import of Chinese product in Indian market, but this is certainly impossible as this will be against the norms of World Trade Organisation. And any country can't simply abandon its rules.
2.) China is India's biggest trading partner but it's not true vice versa. In financial year 2014 china imports amounts only of 16.4 billion us dollors from India, that accounts for 0.8% of total imports of China. While Indian imports from china amounted 58.4 billion us dollors i.e 12.6% of total Indian imports (data source:Wikipedia). And remember that chinese GDP is way bigger than that of India. Even if boycott china succedes to some extent, and our business ties are effected, India will have to suffer more. Figures clearly explain that we can't mess with big boy right now.
3.) China has the least transportation distance with India as compared to US, UK, GERMANY etc. And this factor cuts down the goods price significantly. Major imports from china includes computer hardware, steel, chemicals and drug intermediaries. India exports a large number of small automobiles and automobile industry requires a lot of steel, this is difficult without imports from china. India has the biggest pharmaceutical industry in the world, but drug intermediaries(chemicals used to make medicine) are suppied from china.
4.) We are in the era of globalization. At present time consumer wants good quality products at lowest cost. Think for a moment can we ditch the Xiaome phone for the micromax one, no, we buy it because it has better quality at same price.
5.) India has large and growing population and we don't have enough manufacturing sector to fulfil the needs of that much people. We have some manufacturing units for these needs but either they are not technologically advanced or they are not cost effective. Obviously we have to import from other countries and here Chinese goods win the game due to their cost competitiveness.
6.) Avoiding chinese products may accelerate inflation, as we know that most of the Indian population lives below the poverty line."SWADESHI ANDOLAN OR BUY SWADESHI" sounded good in Gandhi's era but not in this era of globalization.We have to understand that promoting made in India and boycotting made in china both should be seen from differnt perspective.
Here are some steps that need to be taken for saving our domestic economy rather then completely boycotting Chinese goods:-
1.) Raise import duty on Chinese goods (but it has its limits too).
2.) Set up manufacturing sector and increse domestic manufacturing and expand the existing one so that we can fulfil the needs of society.
3.) Invest more in R&D so that we can make our manufacturing sector more advance.
4.) Invest in infrastructure.
5.) raise the competitiveness of our economy, for example India made satellites and space missions same could be done in other fields too.
Above all we can say that totally boycotting Chinese products is'nt in favour of India, instead we need to try to increse the exports to foreign countries including China.
YOUR VIEWS ARE WELCOME IN COMMENT BOX.
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