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Banning Chinese Product will Kill Indian Mobile Device & E-Commerce Companies

The recent political environment post URI attack is going from bad to worse. One of the reflection of the same is around Chinese Product Ban in India. As we all know that China is close partner of Pakistan and support Pakistan on many front including blocking India move in declaring some of the unwarranted element engaged in  terrorist activities in Global Terrorist list.

The emotional Indian citizens as well as politician jumped into recommendation bandwagon and started appealing traders to stop importing Chinese good to make Chinese realize the importance of India.

As far as India relationship with China is concerned, We do have difference but relations are the same for the last many year but at the same time, both the countries do billions of $ trade on yearly basis and it is growing every month.

I don't want to talk sector wise but would like to take Mobile Device segment as an example. Is it possible for India to manufacture any mobility device without any involvement of Chinese firm. If i am not wrong then it's not possible. Most of the Indian as well as global mobile giant started their own assembly plant in India under Make in India initiative but procure many component of the device from China. 

In India, more or less all the big Chinese Mobile Phone companies are operating and does it mean that their products should be banned. Let me tell the readers that most of the Chinese Smartphone to feature phone companies are flourishing in India and gaining market share. The thinker of India must understand that millions of Indians are attached with Mobility segment and any move will lead to total collapse Mobile segment. We must note that its more than $ 7 Bn industry and its associated industry market size is around $3Bn. When Indian or global companies are using China based component supplier to make the product cheaper than how it is possible to neglect that. Who is going to be the loser? It will not be the one who is recommending it but the government in the form of taxes, Millions of citizen will lose job, Banks NPA will go up.

At the same time, We all know that leading e-Commerce companies in India such as Amazon or SnapDeal or Flipkart generate maximum GMV from  Mobile Device and it acts as supply route to attract user on to their portal or applications. The move will impact investors who will loose billions of $ plus Job.

We all should be very careful before commenting without having an understanding of ecosystem. I can talk about other sectors but will confine myself to most popular segment. Grow up our great thinker and think about the benefit of India with peaceful mind rather than take the rash decision which will ultimately impact our brother and sisters jobs.

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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  1. i think boycott chinese product...

  2. This one is good. keep up the good work!..
    foreign exchange