Impact of Coronavirus (COVID-19) on India
- India's Import from China
*Active pharmaceutical ingredients (API): 70%
*Certain Mobiles: 90%
*Automotive parts and fertilisers: more than 25%
*Organic chemicals: 37%
*Inorganic. Chemicals: 13%
- India's export to China: 5%
China is India’s 3rd largest export partner.
- Up to a large extent, it will impact the Indian industry. In imports, the dependence of India on China is huge. Of the top 20 products that India imports from the world, China accounts for a significant share in most of them. more
Your concerns are genuine and correct. I think we are getting signals and we need to gear up in decreasing the dependency on out side countries,especially where we have the raw material and/technology.
To answer your question, why many mgfrs in India stop there production and go for imported products,as they have to survive in the Indian market. Secondly setting up an industry in China is very easy as compared to that in India. Hence there is a mushroom growth even for smaller inds.Taxation, duties,other infrastructure support is tremendous. Transportation is remarkable even in what we call C zone. Mainly if you ask there are less restraining parameters for industrial growth.
Recently I attended a Startup and MSME seminar. If I have to start with a small setup in my city,i can't because there are no incentives. If I go to other B,C,D,D+ zones my product will become costly and not salable eventhough there are no solution or other concerns. This is only an example.
Now regarding economy of scale, labour, infrastructure, financial support China is very much ahead. This may bebcos ourz is a democratic County. Hence if we take a quantum jump target,focus on mfgng,market and together plan with out the greed for power, and use our research, intellect, other resources prudently everything will be a Eutopia.
Thanks. I would like to further add on based on your inputs.
Okay China communist country n we are democratic . But that doesn't restrict our growth or development in all these years. Facing competition in all the manufacturing sectors is a normal phenomena. Let me just share the history here, after the world war II, the world markets were flooded with cheap Japanese goods like toys, n other household goods, but the quality was poor. All such goods were sold on the footpaths in lots.
Thereafter, the industrial revolution made Japan number one country in steel, machineries, chemicals , aeroplane parts, etc; n that too company like Hitachi started producing from paper pins to Aircrafts n also wrist watches by Seico .Breaking the monopoly of Swiss made watches. How was that possible , only n only due to the spirit of COINTRY FIRST rest all can wait.
The liberal transport or incetives etc were there in our country also ,tax holiday for industries in many rural areas later on it was given the name of under SEZs zones. But the industries started taking disadvantage of such benefits n incentives,and never thought of passing on the benefits to their clients. Taken liberal finance from banks n have closed down their industries. There were hundreds of industries which were on the list of auction by the industrial development n industrial finance corporations of the respective states.
Moreover ,our Govt.never bother on lady 60 years to take work from country's prime institute CSIR. Nobody took account of their output ,justifying it's name Council of Scientific and Industrial Research, what industrial research they have done, how many new sustainable technologies they have developed so as to reduce our dependency on imports.
The MSME or Small scale sectors never thought of manufacturing some new products, every one became one more producer or seller of potatoes seller. N then lament there is no business no profit.
How can there be profit. Before selecting the product line we never do our proper homework n then select the product line.
There are many products even today has good domestic n international market, with assured buyers.
But then who is interested?
Anyway, the story is very long ,if you can share your mail id I can provide you more meaningful derails.
Why our indian manufacturers, traders have attracted towards China in almost all sectors, that they stopped their own manufacturing n import in neutral packing, importing from countries who have free trade agreement with China n saving on duty if thru SARC countries,there by taking advantage or disadvantage of such import n trade facilities.
Particularly after Tiananmen Square revolution there was a phenomenal growth of Chinese industries,China signed WTO agreement much ahead of us, are these the reason they are in better position than us in international business?
Can our economist not come out with better master roadmap so as to reduce our dependency on exclusive imports of various basic or intermediate products , spare parts, building construction material almost all domestic items like furniture, tiles, electrical goods children toys, our festival items , even they are trying to push their dairy products. There is something definitely wrong somewhere in our system, people's mind-set n may be many more reasons. On one hand our Govt is trying tooth and nail to attract FDI but may be some orthodox thinking n oppose by local tradesmen not willing to take any forceful actions.
The country which invaded our country in1962 n for years we were not in any way connected with them on political grounds, business n in all these years how come we attracted to do more n more business with China, inspite of having long pending issues of land, their
Whemently opposing our membership in the UN Safety council for all these years. They support our arch enemy neighbour country .
Still we don't realise all these n do more n more business with them. On the back drop of all about cited issues are we not suppose to think again n one and all have to contribute to come out of such short time gains or profits , have to revolutionise our industries, scientists commerce n trade organisations on top of it our political leaders of all parties to unite n have one voice for the country's interest first .
Jai Hind more