With the intensified tensions between India and China at LAC ( The Line Of Actual Control ), India has lost their twenty soldiers by the attack of PLA of China. Since India and China both are now arming up militarily and economically, it seems a type of trade war is going to be declared by both leaders of these nationalist countries. In this face-off, the Indian Government announced a slogan "Boycott China" over it's reprimanding neighbor. Though this is not a recent phenomenon, in the past we have witnessed a few local movements throughout India but this time its scale is huge also the government is lending it supports the movement. India has banned all state-owned telecommunication equipment; though there were no such restrictions for the private companies. Incident of protesters burning and smashing Chinese products like smartphones, TV, toys, and other things. The prime new networks all over our country are filled with heated debates over this issue. Nationalism and hatred towards China are at an all-time high.
But, in this current era of globalization with India's diverse supply chain is it possible for our country to go in a full-fledged war with the manufacturing hub of the world?
There are some logical points to describe the strategy.
The trade deficit between India and China is the largest among the major trading partners. It imports from China nearly seven times more than it exports to that region. Many Chinese companies have significant market shares in the consumer goods segment such as electrical devices, mobile phones, plastic objects, cars solar cells, and all. Almost 60% of India's requirements of electrical and electronic equipment were met by China. 30% of automobile components have been manufactured by China. In the year 2018- 2019, USD 4.5 billion automobile components were exported from China to India. Chinese companies have captured more than 60% of the Indian toy market.
According to the report by FDimarket.com in the past two decades, Chinese investment in India has been steadily increased. Chinese investment in Indian start-up companies was also reported to have risen to USD 4 billion in the last five years. The major valued Indian companies Flipkart, Swiggy, Zomato, Paytm, OYO also companies like Alibaba Group or Tencent were also shareholders of China.
There is a fact why the Chinese industry is becoming the dominant industry in all over the world because of their "Quality of Price". The small business organizations and MSMEs were worst affected because of this strategy. They import maximum raw materials from China at a cheap rate. If the Boycott china crusade is inaugurated with the prime minister's appeal then it will be the death knell for the small and medium industry as they have to sell products in a high range in India while they are already taking a severe hit remaining to the pandemic of Covid-19.
Considering the aftermath of the pandemic it's more feasible to stand beside each other and not against each other.
If there is one thing that this pandemic of 2020 made everyone realize that none of the nations are self-sufficient.
-Priya Dutta Banik