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How boycott China will impact the Indian economy?

Chinese smartphones brands led by Xiaomi, Oppo, Vivo are market leaders in India with an estimated 72%share put together, leaving Samsung and Apple behind according to a report by Gateway House. Quarterly data by counterpoint corroborates this.

The India sales of those top Chinese smartphone brands totalled more than $16 billion in 2019,  according to IDC(International Data Corporation) Indian government official said they plan to impose higher trade barriers and raise import duties on around 300 products from China.

India currently has a $53.9bn trade deficit with China.

The decision will target imports worth $8-10billion with the aim of deterring non-essential lower quantity imports which render Indian products uncomptetive.

Bilateral trade between China and India was worth $88billion in the fiscal year ending March 2019.

China accounted for over 5%of India’s total exports for financial year 2019-20 and more than 14% of imports, meaning India runs a huge trade deficit with China, the biggest exporter to India.

Chinese exports to India comprise smartphones, electrical appliances, power plants inputs, fertiliser, auto components, finished steel products, capital goods like power plant, telecom equipment, metro rail coaches, iron and steel products, pharmaceutical ingredients, chemical and plastics and engineering goods, among other things, according to the Ministry of Commerce.

 

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