Devsagar Singh New Delhi
President Donald Trump’s tariff war globally has the potential to push more Chinese goods into the Indian market like never before. This is bound to further adversely impact Indian manufacturers who have always raised the issue of cheap Chinese imports.
Aware of this impending problem, the Government is reportedly considering imposing hefty anti-dumping duty on Chinese goods. However, this may not work much, given the fact that massive amount of Chinese goods find their way into the Indian market through surreptitious routes. It is common knowledge that Nepal and Bangladesh provide easy routes for such goods given a vast land border with both. Contraband Chinese goods flow into India even from the Myanmar via the North-east.
Chinese goods are already flooded in the Indian market whether in cities and towns or in villages in the interior. More of these would now be pushed into the country after President’s Trump’s imposition of a total of 52 per cent duty on Chinese goods.
Significantly, there is little opposition from the people for these goods. They actually welcome it as these goods are cheaper. From fancy electronics and electrical items to balms and cutlery –you have everything in plenty. Festival items like Diwali lights are so popular that Indian manufacturers seem to have totally given up in favour of their Chinese counterparts. Even China- made replica of Indian gods and goddesses are selling well among Indian consumers.
Clearly, Indian manufacturers will be further under pressure. They , in turn, will cry against cheap Chinese goods available in the country and seek action from the Government. Finally nothing much will come out it except disappointment for the manufacturing community, particularly small and marginal manufacturers.
India and the Indian manufacturing sector, it is said by experts, will finally learn it the hard way. They will have to contend with the fact that the consumers will ultimately choose goods which are cheaper. Where it comes from is immaterial. Durability has been an issue with the Chinese goods , but it has been largely ignored by consumers. Chinese manufacturers seem to have also improved their produce in the meanwhile.
Indeed, complete blockage of goods and services on the basis of sovereign borders has never been successful anywhere in the world. Developed countries like US too could not stop illegal commerce of goods and contraband from Mexico and Canada with which it shares the land border. With all his powers, Trump may still be far off from stopping such commerce completely.
The present situation must be utilized as an opportunity in India to make its manufacturing competitive in the international market. The “ Make in India” initiative of Prime Minister Modi does not seem to have made much impact. Small scale industries and MSMEs continue to depend on government patronage. They must be made to be on their own to compete with their Chinese counterparts. Otherwise, they have no future. Government rules notwithstanding , the consumers will continue to lap up Chinese products if they are available cheaper. Border check-posts will remain ineffective practically for cheaper goods to find their way into Indian market.