Pretence of self-sufficiency

During January-November this year, a total business of Rs 8.57 lakh crore was made between India and China, which is the highest thus far. This amounts to an increase of 46.4 per cent over the corresponding figures of last year. During this period, India imported various products worth Rs 6.59 lakh crore from China, which is 49 per cent more than the corresponding period of last year. However, China also imported various products at record levels from India during this period. China imported a total of Rs 1.98 lakh crore worth of products from India, an increase of 38.5 per cent over the same period of last year. Despite this, India's trade deficit with China widened to Rs 4.61 lakh crore, the highest ever.

Trade between India and China is increasing despite the tensions along the Line of Actual Control (LAC). Even now, more than 50,000 soldiers are deployed along the LAC from both countries, which is more than the number of soldiers deployed during the 1962 war. Twelve commander-level talks to resolve the border dispute have failed, and now talks are being held between foreign ministries of both the countries in order to maintain normalcy.

The current situation testifies to the importance of bilateral trade between the two countries. Today, business has become more important than war, because through war, we cannot fulfil the requirements of citizens. If business relations of a country with other countries are not good, it will ultimately be ruined; there is no need for war. Today, we need to be self-reliant in all respects. This can save us from any kind of war. Therefore, the changed circumstances should not be viewed with surprise. India is still not self-sufficient and is dependent on China for supply of many products.

Boycotting Chinese products may be an emotional step, but in reality, the Indian market is occupied by Chinese products. Sheets used by barbers for cutting, scissors, razors, toys for children, diyas sold in Diwali, our deities, decoration materials, mobiles, TVs, laptops, and even most of the items sold in village grocery stores are made in China. The Indian market is full of Chinese goods. So, in this situation, even thinking of boycotting Chinese products is akin to daydreaming.

As per latest data released by the Chinese government, in 2021, China imported more goods from India than before, and the Chinese rulers have further agreed to strengthen trade relationship with India in the coming days. In 2020, India's total trade with China was USD 87.6 billion, in which India had imported about USD 50.28 billion from China. Prior to this, in the year 2019, India imported USD 20.17 billion from China, in which the number of products like electric machinery, machinery parts etc. was more. Apart from this, India also imported organic chemicals worth USD 8.39 billion, fertilisers worth USD 1.67 billion etc., from China.

Trade data between India and China for the period from FY 2014-15 to FY 2019-20 shows that India exported more low-value crude products to China, while it imported manufacturing-related products from China. During this period, China was mainly importing iron ore, petroleum-based fuels, organic chemicals, refined copper, cotton yarn etc. from India. In food items, India was exporting fish and seafood, black pepper, vegetable oil, fat etc., to China. Also, India was exporting granite blocks and stones used in buildings and raw cotton to China.

In the last few years, the major items imported from China into India are automatic data processing machines, telephone equipment and video phones, electronic circuits, transistors and semiconductor devices, antibiotics, fertilisers, sound recording devices, TV cameras, auto components and accessories, project goods etc. India largely imports finished products from China to meet its domestic needs. In the case of electronic hardware, China also dominates the Indian market.

If the amount earned from exports of any country is more than the amount spent in imports, then it is called trade profit, whereas, when the amount spent on imports is more than the amount earned from exports, then it is called trade deficit. India's trade deficit with China is constantly increasing, because India imports more products from China, while it exports less.

India's trade deficit with China in 2014 was Rs 3.36 lakh crore; in 2015, Rs 3.91 lakh crore; in 2016, Rs 3.87 lakh crore; in 2017, Rs 4.45 lakh crore; in 2018, Rs 4.30 lakh crore; in 2019, Rs 3.83 lakh crore; in 2020, Rs 3.30 lakh crore and in 2021, Rs 4.61 lakh crore. It is clear from these figures that even if we make a million claims to boycott Chinese products, in reality, it is not possible for us to do so. We will continue to depend on Chinese products to meet our domestic needs. Not only this, even today, we import raw materials from China for manufacturing various products.

China is self-reliant in the field of computer, automobile and electronics industries. It exports various products to countries across the globe. Electronics accounted for 20.6 per cent, machinery 13.4 per cent, organic chemicals 8.6 per cent and plastic products 2.7 per cent of the products which are being imported from China. Whereas, organic chemicals and cotton accounts for 3.2 per cent & clothing contributes 1.8 per cent of the products exported from India to China.

India is the largest importer of electrical machinery, mechanical equipment, organic chemicals, plastics and optical surgical instruments. These account for 28 per cent of India's total imports. India imports 40 per cent of organic chemicals from China and also exports products made from it to China.

Even though there is talk of boycotting the goods made in China in India, many industries of India are dependent on China for raw materials and parts. India is also dependent on China for many finished products. In such a situation, instead of pretending to boycott Chinese products, we should emphasize on increasing the quantity of "Made in India" goods.

Views expressed are personal