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Chinese Dragon: Will India Ever be able to Slay it?


By Ayush Kumar
Falling income, rising inflation and then there’s China. Indian patriotism only surfaces on national holidays and when border tensions aggravate. However, the Indian market has never witnessed patriotism when it comes to sale and purchase of goods. Indian market is inordinately a price sensitive market. Lower prices imply customer attraction and retention as well. While this article is written some of you might be using a Chinese product in some direct/indirect way. Vague? Here, insinuation is done to your smartphone and other’s as well. Even if it’s an iPhone, some of the key components are still being manufactured in China. Then, as one steer to the budget segment, Chinese companies have near monopoly in this branch. With a humongous 73% of market share, where Xiaomi standalone owns 30% of Indian smartphone market, the pragmatic picture is evident to every Indian. (Reference counterpointresearch.com)
Smartphones is one such example where the ground reality is cited the and deep within, Indian reliance on China would take a painfully long time to fade away. India should be proud of its pharmaceutical sector because it has performed exceptionally well in recent years but remains an underdog. During the pandemic it shined a lot when India was asked to export Hydroxychloroquine. Here lies a big catch, better said a painful reliance on China again. To manufacture medicines, India import almost 70% of API (active pharmaceutical ingredient), which is crucial to manufacture medicines.Well, then arises a simple question. Even after paying import duties, tariffs and numerous charges, why Chinese product are so affordable? The foundation of China being a manufacturing hub was set by Den Xiaoping right after when he came to power, in 1978. Rest is history. Well present as well considering how China is one of the key supplier for global economy.
India on the other hand. Our service sector is magnificent. One of the finest in world. But the goal of superpower 2020 couldn’t be attained without introducing reforms in our Industrial sector. In fact, India still craves for a long-lost Industrial revolution. With economy falling, incomes contracting and ground reality being incontrovertible, boycott China won’t hurt China the way it might hurt India. Make in India, buy from India, vocal for local can only become a verisimilitude when Indian manufacturers are exposed to competition and efficiency. Maruti Suzuki clearly states being competitive is our only way out to taper Chinese Influence from Indian market.

Emotions surely hold value, but they can never feed hunger and alleviate poverty. Structured actions from state and implementation by people is a recipe to overhaul the economy. Without reforms in the Industrial sector, India won’t be able to curb China and its indirect influence in economy.

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