As border tensions between India and China flares up with the deadliest clash in more than four decades, leaving at least 20 Indian soldiers dead, adds another layer of uncertainty to companies already reeling from the coronavirus pandemic on both sides of the border. There have been calls for boycotting goods imported from the neighbouring nation while supporting our Prime Minister’s Aatmanirbhar Bharat & Make In India Campaign to revive the economy. That, however, won’t be easy because the two economies are intertwined.
We are witnessing some wave in current India Licensing Industry Unites as Nation First amid rise in Indo-China tension. We believe together we can make it possible for the country’s dependency on neighbours and stand tall in front of whoever eye’s us with bad intentions!
To get into the depth of the movement, We at Licensing Corner, looked at the possible areas of our economic impact and spoke to few industry patrons.
But First, Let’s Get to the facts of India-China Trade, The value of imports from our neighbour may have fallen, but their share in the overall pie rose from 13.68% in the previous fiscal year to $70 billion in 18-19. India, is the seventh largest export destination for Chinese products with smartphones, electrical appliances, promotional products, toys, among other things.
Having said so, China too is the third largest export market for Indian Goods with over 5.33% as of FY19-20.
India’s Dependence on China’s Bulk Drugs
Chinese Brands Dominate India Smartphone market share with Xiaomi at 30% & Vivo at 17% among others including the Chinese apps like TikTok, SHareIt, UC Browser etc.
China Investors have put an estimated $4 billion into the Indian startups as of March 2020.
With anti China sentiment gaining ground, in a survey by LocalCircles on Friday among 32,000 respondents—an overwhelming 87% agreed to boycott Made in China goods. Close to 40% said they won’t buy products or services offered by brands such as Xiaomi, Vivo, One Plus Oppo, Club Factory. However, they will continue using them if they already own such brands.
But even as the anti-china momentum grows, not all are convinced.
Manish Rajoria, Aadarsh Pvt Ltd. was found quoting that, In today’s economy we cannot stop trade with neighbours, business is the only common interest which can help in re-developing the relationship. China can ban the bulk drugs and we may not have enough medicines. Indian companies will monopolise and increase prices. We have seen it when we had anti dumping duty on Plates used in the Offset Printing industry. Shortage increases prices. Politicians in both countries want to distract the public to hide their failures in saving lives we lost due to COVID and the economy.
While Rohit Sobti showed his agreement of the statement; Vishal Khanna says, Whilst I agree to build relationships, but nothing at cost of Nation.. Nation First… these guys have stretched it too far and China is not the only country in manufacturing. Indian traders have not explored other regions with specific Indian treaties the duty is almost nil. Most of the traders are not well informed. My business used to import 60% from China and now last one year we have diverted everything to other regions and still very competitive than most. Mostly now we are making everything in India, all promotional products including Lenticular’s and Figurines etc.
Vishal Sinha, Swag Fashion Hub emphasis on how we should do away with Chinese imports in a phased manner by identifying other import opportunities, at the same time building and strengthening the requisite manufacturing infrastructure within the country. This phasing out of Chinese goods should be done considering business interest of respective categories and operating industries in the country.
Permender Singh, Mattle Toys added, Boycott China will have a major impact as Nationalism will direct Consumer Behaviour – there are some things that are non-compromising & we are in a warlike situation (in today’s world this like war). Businesses will get realigned to this fact & it given an opportunity to both domestic & non-Chinese brands to make significant inroads.
While all these looks promising, India’s reliance on china will be a long term effort. This definitely serves as an opportunity to Indian Manufacturers, Entrepreneurs and traders to look at producing products in home ground and avail the benefits under govt. Aatmanirbhar bharat campaign, said Rutika Malaviya, Editor-In-Chief, Licensing Corner