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.
i think boycott chinese product...
ReplyDeleteThis one is good. keep up the good work!..
ReplyDeleteforeign exchange