India Vs China Trade Imbalance

1904-014745 canada

India Vs China   Trade Imbalance

is (44)

India has prohibited recently around 50 apps of Chinese origin including TIKTOK and more so. May be this is in effect of the recent killings of 20 Indian soldiers in Galwan valley. May be a consolation for the above attack.  When we analyse the trade treaties with China we should take into so many aspects into account and update the present situation. A country’s strength lies in the balance only when our exports are more and imports are less. In the context let us take into account of exports by India to China. Iron and iron ores, dried ash, Natural pearls, costly and precious stones, cotton, cotton yarn, Textiles goods, bony sea animals etc. At the same time let us take into account of our imports from China. All spares of Nuclear reactors, Furnaces parts, Electronic spares, Communicative equipment’s, TVs, and its spares, Plastic products, Iron semi-finished, Thrashed steel.  Understand one aspect we export all products at a cheaper price to them.  Whereas we get back from the Iron ore the finished products of Iron. We are exporting such goods which are unwanted by us in our local market, whereas we get imported the Plastic products of all kinds and TV and all electronic goods at a price much higher than our export cost.

is (45)

The trading has been happening for the past 20 years with China. In the year 2019 India has exported to China around billion dollars whereas our imports have been up to 68 billion dollars. Unless we equalize and balance our strength we cannot come out of the clutches of our business treaty. A country is judged by its industrial climate and the number of corporate that take the economic development cluster. If all those belong to foreign investments we cannot circumvent the intricacies of the trade. The Profits are taken by Foreigners only. Based on this scale there are large Chinese corporates are running in India. The infrastructure projects are mostly by Chinese like our country’s Bridges, Roads, Metro Rail projects, Mines, are the major ones. Each carries a tag of Crores and Crores of rupees. The recent one being the Tunnel path of Delhi to Meerut and its metro rail project has been at the hands of Dunnel Engineering has taken in the auction that valued around 1126 crores. China will be exploiting the cheaper labour costs by employing Indians and earn sizable profits.

is (38)

We are feeling good while arresting the 50 apps of china and whereas they have really taken the pile strength of Cell phone sector in the past five years. Like XIOMI the manufacturer of cell phones have introduced Xiomi, Oppo, Realme cell phones are vandalizing around 50% of our market shares. We were good in production of software products earlier.  But at the advent of Chinese occupation they have entered into Computer and peripherals in a large manner. Not less than they have entered into the electronic field too, by companies like Shanghai Electric, Harbin Electric, Dongfang Electric all are Chinese presence.

Of course we too have established in China through our organizations. We have establishments in Shanghai and Beijing.  The most important companies are TATA sons, Reliance  Industries, Infosys, TCS, Wipro, Mahindra & Mahindra, Suzlon Energy, Sundaram Fasteners, Binani Cements, Dr. Reddy’s laboratories, Aurobindho pharma, Matrix Pharma, NIIT, Bharat Forgings, APTECH etc.

is (43)

The Mathematical calculations would prove you how are we at the mat. The total production value by India are amounting just 2.6 trillion dollars. The Chinese on the contrary valued at 13.6 trillion dollars. The beauty of this is 13 trillion dollar GDP strength of China is having borrow-able levels of just 5 trillion dollars only.  This is not even just 50%. Whereas the Productive capacity of 2 trillion dollar proposed by India is having the borrow-able limit of over 1 trillion dollar. In this last four months of Corona we have even submerged and lying very low in terms of our manufacturing effect.

China is standing six times higher than our trading. In fact china has benefited through small and cottage industries in various parts of China; we are having all the utensils from kitchen to wardrobe and so many things from china today manufactured by China through their cottage craftsmen. All these industries are comprehended by all those corporates and sent to India with higher tag value. But in India our small and medium and large industries are not doing well in the last ten years. Most of the companies are facing either lock out or closures.

is (46)

Our only resort is to bring in those cottage industries to lime light and reverberate and resurrect our small and medium industries. They have to be taking proper care and see that those industries have to bring into a level of worthy manufacturing industries.  For this the Government has to put in their prospective plans and projects to make them come back to action.  The fittest way is to bring back like Guindy industrial estate of Chennai and Ambattur Industrial cult has to be reinvigorated with energy and environmental assistance.  This not only solve employment problem and the economic culture will also grow. We need to pin on our exports alone to compete with any country; otherwise we had to lie on imports which will definitely harbinger our economic balance. To compete with China this trade imbalance has to go and see that our Industrial climate is sufficiently encouraged and improve on a war footing.

We shall all endeavor, we reach in the milestone at a not too distant future.


T Mohenchander



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