Indo-Chinese relations were never very friendly but still China has managed to penetrate deep inside the Indian markets and households. In recent years, India and China have been involved in a high voltage tussle at the Indo-China borders, the effect of which can be heard on the streets of India. You must have heard people saying ‘ban chinese products – teach China a lesson’. But will India really be able to teach China a lesson by banning Chinese products? Let’s discuss it in detail.
When we talk about banning Chinese products in India, one major question that pops out is ‘how much will it affect both the countries?’ So let us tell you that China’s business model is not limited to India. China is a prominent supplier and exporter in the world market. In 2009, China became the largest exporter of the world, whereas in 2013 it became the world’s biggest trading nation.
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On the other hand, India’s share is pretty insignificant in global trade, which means if Indian government imposes a complete ban on chinese products, it will surely impact China a lot of money as Indo-China trade figures are around $135.98 billion (as of january 2023). But with such a ban, India and its citizens will have to suffer much more than this.
If India completely bans trade with China then inflation will increase, which will directly attack the wallets of common citizens. As per a data, in India, the share of chinese products in – smartphone market is around 72%, telecom equipments is 25%, auto components is 26%,internet apps is 66%, solar power is 90%, steel market is around 20%, and pharma/API is 60%. In the past five years, India’s dependency on China has also increased as its overall imports from China have surged by approximately 29%.
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Which means if Chinese products get evicted from India all of a sudden, it will barely hit China, whereas Indian markets will be left with a huge void to fill, which will impact Indian economy, trade and consumers adversely…