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Why Can't India Ban Chinese Products?


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Despite the rising border tension between India and China and China favoring Pakistan and it's policies, we see a large flock of Chinese goods to Indian markets and there is a rising voice over "Ban Chinese Products" in India. The government is also pressing hard to negotiate over border disputes and indulging in diplomacy to solve these problems working on the principle of pacifism and India simply cannot afford to loose Chinese market at this time.
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1.) Manufacturing Hub: Presently India has no manufacturing base for several markets such as electronics, and even if we have some then it's presently not up to the mark. 

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2.) World Trade Organisation: Presently both India and China are members of WTO and if India decides to ban Chinese products, then immediately China will also do the same to us. Presently, China exports only around 2.3% of it's exports to India while India exports around 4.3% of total exports to China so there might be a large freefall of market if India bans Chinese products.
So basically we are more dependent on them. Here is a figure of Bilateral Trade between India and China(Source: Wikipedia)

Chinese imports from India amounted to $16.4 billion or 0.8% of its overall imports, and 4.2% of India's overall exports in 2014. The 10 major commodities exported from India to the China were:
  1. Cotton: $3.2 billion
  2. Gems, precious metals, coins: $2.5 billion
  3. Copper: $2.3 billion
  4. Ores, slag, ash: $1.3 billion
  5. Organic chemicals: $1.1 billion
  6. Salt, sulphur, stone, cement: $958.7 million
  7. Machines, engines, pumps: $639.7lmillion
  8. Plastics: $499.7 million
  9. Electronic equipment: $440 million
  10. Raw hides excluding furskins: $432.7 million
Chinese exports to India amounted to $58.4 billion or 2.3% of its overall exports, and 12.6% of India's overall imports in 2014. The 10 major commodities exported from the China to India were:
  1. Electronic equipment: $16 billion
  2. Machines, engines, pumps: $9.8 billion
  3. Organic chemicals: $6.3 billion
  4. Fertilizers: $2.7 billion
  5. Iron and steel: $2.3 billion
  6. Plastics: $1.7 billion
  7. Iron or steel products: $1.4 billion
  8. Gems, precious metals, coins: $1.3 billion
  9. Ships, boats: $1.3 billion
  10. Medical, technical equipment: $1.2 billion

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 3.) Indian Business: Many Indian businessmen earn a majority of revenue from Chinese market and these affluent Indians may go at a huge loss.

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So this step of banning Chinese products only as to oppose the Geo-Political strategies may end up being a disaster and it's a highly quixotic plan. Apart from this, we individuals can personally boycott the Chinese products but yet the government will never jeopardise it's own trade deals.

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