BoycottChina, Army with bullet, Civilians with wallet, BoycottChineseApp

The border dispute with China (Border stand-off between India and China) continues to grow. Three Indian Army personnel have died in a violent clash on the Ladakh border. This will definitely have an impact on the trade between India and China. In such a situation, it is necessary to understand how economically India and China are dependent on each other and whose loss is going to increase as tension increases.

6 lakh crore bilateral trade
Bilateral trade between China and India is about 6 lakh crores every year between India and China. India imports about 4.9 lakh crore rupees every year from China, while 1.2 million crores is exported to China. In this way India’s trade balance with China is disturbed, but India’s market is also very important for China. In any case, he would not like to trade with India.

Four times import than export
According to a report, between April 2019 and January 2020, India exported $ 14.42 billion to China, while total imports from China were almost four times higher ($ 57.93 billion) during this period.

Import-export affected due to corona
Talking about this year, the lockdown was implemented in the entire country in March. China exported $ 9.5 billion to India in the month of January-February. During this time, India exported $ 2.5 billion to China. Due to Corona, it has fallen by 11–12 per cent over the previous year.

The dependence of each sector on imports from China
Companies in every sector in India depend on imports from China. The Bulk Drugs and Intermediaries sector has 68 percent dependence on imports from China. Similarly, 43 per cent in electronics, 27 per cent in garments and about 9 per cent in auto sector depend on imports from China.

China’s huge investment in Indian companies
Chinese companies have invested heavily in India’s Internet and startup companies. If China withdraws its investment, the difficulties of Indian companies may increase. In the last few years Chinese companies have invested extensively in India. According to a report, in 2014 Chinese companies invested 12 thousand crores in India. In the last 6 years, its investment has increased five times to close to 60 thousand crores. Apart from this, China has also invested extensively in India through subsidiaries based in Singapore.

Investment of 29 thousand crores in startups
Chinese companies have invested on a large scale in Indian startups. It gained a lot of momentum in 2019. China’s investment in Indian startups in the year 2018 was 15 thousand crores, which increased to 29 thousand crores in 2019. Of the 30 large startup companies in India, 18 have Chinese investment.

Large-scale Chinese investment in all Internet companies in India
China has a huge investment in all the big internet companies in India. Paytm has invested in Alibaba, Alibaba Group and Ant Financial. Companies like Tencent, Didi Chuxing have invested in Ola. Companies like Didi Yusing and Huazhuhui have invested in Oyo Hotels. Alibaba Group has invested in Snapdeal. Companies such as Tencent and Meituan have invested in Swiggy.

China invests heavily in dozens of companies in India
Chinese companies have invested dozens of companies in India. Tenshet has 19 companies in India, Shunwai Capital in 16 companies, Swastika in 10 companies, Xiaomi in 8 companies, Fosun RZ Capital in 6 companies, Hillhouse Capital Group In 5 companies, NGP Capital has invested in 4 companies, Alibaba Group in 3 companies, Axis Capital Partners in 3 companies and BAce has invested in 3 companies. Perhaps due to this fear, the government has recently changed the rules of FDI coming from China.

More than 70 percent share in smartphone market
China’s smartphone maker has dominated the Bharti smartphone market. The smartphone market in India is around Rs 2 lakh crore. Chinese brands such as Oppo, Xiaomi, Redmi have captured more than 70 percent of the mobile market. Similarly, Chinese brand occupies 45% of the 25 thousand crore television market.

12 percent share in home appliance market
Similarly, the home appliance market is worth 50 thousand crores, in which Chinese companies have a share of 10-12 per cent.

26 percent stake in auto component
The size of the auto component market is 43 lakh crore, in which the Chinese product share is close to 26%.

60% stake in pharmaceutical
Everyone will be aware of the API dispute during Corona. The pharmaceutical market in India is 1.5 lakh crores. China’s share in this is 60 percent.

Big Role in Solar Power and Telecom Equipment
The solar power capacity in India is 37,916 MW. Of this, 90 percent of the shares are from Chinese products. The market for telecom equipment is 12 thousand crores, in which the share of Chinese product is close to 25%.

Both are very important for each other
In this way, in the Indian economy, China and Chinese companies are deeply ingrained. All of India’s industries depend on goods imported from China. In such a situation neither Chinese goods can be boycotted nor can trade relations be ended. There is no doubt that China also exports millions of crores to India. Consumption is very important in India’s economy. In such a situation, if India boycott China’s goods, then it will also suffer a lot. Despite the ongoing dispute over the border, China would not like to spoil trade relations with India.

LEAVE A REPLY

Please enter your comment!
Please enter your name here