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Wednesday, April 25, 2018

​ Should India Ban the Chinese?

India cannot completely ban Chinese goods as it is against the norms of World Trade Organisation.

but think about how silly and immature this will be.

Let’s say you play a game of Cricket and you are not given a batting chance. Would you pick your bat & stumps and go home? Would that be a sign of maturity?

While you should fight for your batting chance and stand up to bullying, you should also learn to work in a team & not run away from it.?

Now lets talk statistics:

China imports only 0.8% of its total imports from India while India imports 12.4% of its total imports from china.

China exports only 2.3% of its exports to India while India exports 4.3% of its exports to China.

This is what would happen if Chinese products are banned:-

  • Unemployment : The street hawkers mostly sell Chinese products.  They will be jobless and the current employment scenario in our country would worsen. And it is a known fact that creating employment opportunities is difficult.

  • Inflation: A dress stitched in Italy is going to cost 10 times more than a dress stitched in China. If Chinese products are discouraged , prices are going to rise.

  • Less choice for financially weak: Generally we are of the assumption that anything made in China is of low quality. But quality is subjective. 

Quality can be different according to the needs of a consumer.

For instance- Imagine a market situation where rubber boots are either manufactured by China or by Gucci.

It is very obvious that most people cannot afford Gucci.

The need of those consumers is fulfilled by China.

Lastly we are in the era of globalization.

The basic criteria for buying of goods must be QUALITY of the product.

We don't stop buying Apple phones because it is not from India, do we?

Banning Chinese product to encourage pseudo nationalism is not an answer. India and china have Trade of close to 70+ billion dollars where India exports only 11+billion dollars. This tells you the trade deficit is over 50+ billion dollars.

This should be concern for India. This must be rectified for India’s growth

Watch my animated video here