This presentation elaborates the impact of Chinese goods on Indian economy. It also talks about the positive and negative impacts of Chinese goods on Indian economy.

1. CHINESE GOODS
AND ITS IMPACT ON
INDIAN ECONOMY
By:
Om Prakash

2. Chinese Goods Everywhere
■ Be it anything from needle to toys, electronic gadgets, hot water bottles,
Diwali crackers you will find the Chinese version of the same in India
at much cheaper price.
■ Sino-Indian trade co-operation has deepened over the years and bilateral
trade has grown 24-fold in 15 years, from $2.9bn in 2000 to $71.6bn in
2017.
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2000 2017
Series 1

3. Trade Deficit
■ Since 2014 China has emerged as India’s biggest trading partner and a
country with which India has a large trade deficit. Data Chinese General
Administration of Customs shows that India’s imports from China rose
by more than 7 per cent last October, while exports to China fell by 11
per cent, widening the trade deficit to a record $48bn

4. Growing Chinese Export
■ China is the biggest trading partner for more than 130 countries.
■ Chinese work on the strategy of mass production and mass consumption.
Main reason of their low cost is the low capital investment and export
friendly policies of the Government in China.
■ India has highest total trade with China in all over the world. Also, Import
from China is more than six times of Import from China. This results highest
trade deficit of India with any individual country in the world.

5. Reasons for China’s success
■ China is the second largest exporter in the world after Germany.
■ The price of Chinese goods is 10-70% lower than that of Indian
goods.
■ Main reason of their low cost is the low capital investment and
export friendly policies of the Government in China.
■ Low price, bulk availability, and variety are some of the
favorable features of the Chinese goods in India.
■ Chinese products in huge quantity are put into Indian market and
adversely affecting the Indian units.
■ China is buying raw material from all across the world and
selling the end product back to the world.
Reasons for Success of
Chinese Goods

8. Impact on Indian Industries
■ A recent survey by the Indian pollster LocalCircles, reported in the
Hindustan Times, found more than 80 per cent of Indian consumers
prefer Chinese goods “as they believe they are cheaper and that
Indian goods are quite expensive”.
■ Made in China label is slowly capturing the every segment of Indian
market such as electronic goods, textile and garment industry, toys,
medicines, car components etc.
■ An Assocham survey of 1,500 Holi colour manufacturers and related
traders in various parts of north India, conducted in March this year, said
that Chinese squirt guns now accounted for almost 95 out of every 100
squirt guns sold in north India.

9. ■ The Assocham study said the rate of growth of ceramics imports
from China has shot up from 8% a few years ago to more than 42%currently.
This huge volume of imports at cheaper prices has impacted the profit
margins of the Indian ceramics industry and smaller firms are almost on the
verge of closure.
■ As per the reports of the ASSOCHAM there are so many Chinese toys in the
market that Indian toy industry is finding very hard to survive. In the last 5
years near about 40% of the Indian toy companies have been shut down. Rest
20% are on the verge of closing down.
■ It’s the same story in the power sector. In the 12th Plan alone, almost 30% of
the generating capacity was imported from China. In the rapidly growing
solar energy sector, between April 2016 and January 2017, solar equipment
from China had a share of 87% in a market pegged at $1.9 billion.

10. Boycotting: A Solution??
■ Data on the website of the Chinese embassy in New Delhi says
China is the world’s largest trading nation in goods, with its
exports in 2015 amounting to $2.2 trillion. xports to India
accounted for only 2 per cent of China’s total exports – so
India’s boycott of Chinese goods will not have much impact on
China’s exports.
■ Chinese goods have also helped to keep prices low in the
Indian market, thereby helping the poor. There is no doubt that
Chinese products not only lowered India’s inflation rate but also
fulfilled the daily needs of ordinary Indian people, especially
those on low incomes, and greatly improved their life quality.
■ Many of Indians would not have had access to cellphones if it
was not of China to provide phones on cheaper rate

11. Anti Dumping measures by
India on China
■ The Centre imposed anti-dumping duty on imports of
certain steel wire rods from China, attempting to protect
domestic players from cheap in-bound shipments.
■ The Revenue Department has issued a notification
imposing anti-dumping duty in the range of $52.85- 136.21
per tonne on tempered glass imports from China.
■ Anti-dumping duty is in force on 93 products concerning
imports from China.
■ India's imports from China marginally dipped to $61.28
billion in 2016-17 as against $61.7 in the previous fiscal.