Should Indian Trade Bodies resume their Denial demands on Chinese services and goods? Taking drastic steps against Chinese trade status in India might turn detrimental for the Indian Economy and Entrepreneurship
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Displeased by the China's trial to take Kashmir's issue into the UNSC, Indian Trade guilds and organizations brought out the statement to curb down the deal on Chinese services. CAIT (Confederation of All India Traders) has urged the Indian government to impose the customs duty from 300 to 500 percent on the import of Chinese goods. Also, they gave a call to boycott Chinese products in the entire nation.
Taking these decisions would turn out to be a pessimist in respect to the Indian economy. From the recent records, it can be observed that India's trade percentage majorly export with China has been more in comparison to US. Since last year, globally exports records hold China at the foremost position in dealing with India. Amidst increase in trade percentage, banning Chinese material and levying raised custom duty on its import would create a push back in the Indian economic records.
Indian Pacts and Business records with China and US
In the past few years, sectors where China imposed tariffs on various US goods and services including vegetable products, plastic and rubber material, Indian products export to China in those sectors has been raised from 12% by 337%
In plastic and rubber products, it went from 82% to 94%.
The part of the trade business where India falls at the back step with China is Labor intensive manufacturing imports, where India's share with China is only 3.8%.
At the same platform, India holds 22% of the business deal in the same sector with US. Despite trade wars, India trade deficit with China still remains at 53.6 billion dollars in 2019.
Looking into the business records, China has been performing as a big opportunity for Indian economic market from the past few years. Sectors like FMCG, retail and auto sector also has a bold relationship base between Chinese technology and Indian minds. So, deciding to put tariff barriers before Chinese import would affect the Indian economy directly proportional to China's economic growth.
Although India's share in China production is rising year by year, but it still remains small at some factors, accounting for less than a percent of Chinese imports in the year 2018, whereas India has a slight increase in the US share of imports around 2.1% for the same year.
The trade conflict between China and the US has benefitted Indian economy to gain height in the Chinese market. Bringing in the CAIT's demand for boycotting Chinese products in India would need a plethora of meetings and economic brainstorming sessions so as to avoid financial fall in the national as well as international market.
It has been a habit of China to support Pakistan in the matters related to India and therefore this is the absolute time when we should reduce our usage on Chinese goods," CIAT mentioned.
Government economic officials need to prioritize matter regarding the demands of Indian trade bodies to curb down the dependence on Chinese products. The discussion has to go through while keeping all the concerned points related to economy and financial matters of the nation.
