India to Boycott Chinese Products

There have been campaigns recommending a ban on products made in China. The most common reasons for boycotting Chinese products include inferior quality goods, human rights issues, territorial disputes involving China, support for the separatist movement in China, China’s growing dominance and Governance, including the government control of the Covid-19 pandemic.

There has been an announcement of boycotting Chinese Products in countries like India, Vietnam, and the Philippines, as well as a distinct movement in China itself.  A complete boycott of Chinese products is also considered as difficult to attain as the country is in a position to manufacture a large number of products that are sold and used widely across the world, and also hold stakes in several non-Chinese countries.

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Why Cheap Chinese Products In India Attracts Indian Buyers?

The reason behind cheap Chinese products in India attracts Indian buyers are:

• The inferior quality raw materials used by China make the product cheap and it attracts Indian consumers because of its cheap rate in comparison to other Indian products. 

• The advertisement used in China automatically creates demand for the customers.

• In some cases, there might not be demand but excessive supply which minimizes the price of goods and hence creates artificial demand.

• The Sulphur containing Chinese crackers is more dangerous than Nitrate and during Diwali, they create a lot of pollution in the country. However, due to their minimum price, a majority of buyers get attracted to these products and this creates revenue for India's domestic cracker industry.

What are the Chinese Products Imported in India?

Following are a few Chinese products imported to India:

• Refined copper and copper alloys.

• Roasted Iron Pyrites in India

• Consumer Durables

• Aluminum oxide and hydroxide

• Agricultural products like tobacco and grains

• Marine food

• Petroleum Oil

• Engineering products including compressors and diesel engine

• Vegetable oils and fats, such as Jojoba oil

• Electrical Machinery

• Nuclear Machinery

• Textile material for wigs like animal hair, human hair, and wool.

What are the Indian Products Exported to China?

Following are a few Indian products exported to China:

• Marine Products

• Medical Equipment

• Plastic

• Rubber

• Oil Seeds

• Iron and Steel

• Salt

• Vegetables

• Two types of chemicals namely organic and inorganic are mainly exported by India to China.

• Iron & Steel

• Gems & Jewellery

Advantages and Disadvantages of Chinese Products in India(PROS and CONS)

Following are the advantage of Chinese products in India:

• Chinese goods are 10-70% cheaper than Indian products.

• Chinese goods are capturing different segments of Indian products like textiles, toys, electronic goods, car parts, medicines, and many more.

• The Chinese goods are available in large quantities in India.

Following are the disadvantages of Chinese products in India:

• Chinese goods are largely affecting the Indian market, specifically the toy market in India.

• The cheaper Chinese goods attract a large number of buyers in India which has indirectly affected the revenues of the Indian economy.

What is the Impact of the Ban on Chinese Products in India?

If India chooses to boycott Chinese products, it would result in a loss for both the countries, specifically more loss on India. Also, it may affect the import of capital products on machinery, electrical, chemical, as well as intermediate and consumer goods. These imports are significant for industries in India to manufacture goods, medicines, and gadgets.

India is highly dependent on China for many of the finished goods such as gadgets. If India bans Chinese Products, it will considerably impact the country. With raw materials exported to China, the neighboring countries are in a position to manufacture and export their goods at low prices owing to subsidies and support from the government. Boycotting Chinese products implies lesser cheap goods for consumers in India. A reduction in the import of cheaper capital goods would also increase production costs, making production costs costlier, hence affecting the consumers.

As India also imports a high number of electrical goods, it would impact the price of electric phones and Gadgets. Even, Boycotting Chinese products would lead to Indian traders' loss as they first purchase the stock from China and then sell in India. Boycotting Chinese products also implies that India is itself going to suffer a lot until the country is in a position to launch its new products with attractive features and prices. 

India China Trade Volume 2021

According to the report released by China Global Times, India and China trade volume grew by 70 percent in the US dollar terms in 2021. The trade between the most popular countries between January and May grew to over USD 48 billion.