What if India Boycotts Trade with China?

Displeasure in the Indian society

The call to decrease the volume of trade with China is becoming louder. China has a friendship with Pakistan which makes many sections of Indian society to turn against them. However, the call for “Boycott China” does not gather steam mainly because the idea is not conducive for Indian growth. Politicians in India want to disrupt the adamant stand taken by China.

Bilateral bond between India and its neighbor China

India is dependent on China because it is India’s largest trading partner. The imports and exports with China amounted to $63 billion and $10 billion. India imports solar cells, drugs for tuberculosis and leprosy, display equipment. Other items include boats and floating docks, communication equipment, fertilizers, earphones, laptops, keyboards, conductors for electrical machinery, and cell phones. One-sixth of Indian imports is from China. The falling oil price has made India to decrease its imports over the past few years. The last five years show a drop from $490 billion in overall imports to $380 billion. India exports petroleum, cotton, industrial machinery, and copper. The drop in exports from $18 billion to $9 billion means that India imports merchandise six times more than what it sells to China.

Political leaders want to boycott trade with China

The leading politicians who want to boycott china include Haryana Health Minister Anil Vij, Himanta Biswa Sarma who is the finance minister of Assam, and Sharad Yadav of the Janata Dal. They insist that people should buy Indian goods and not the Chinese goods. An increasing number of turbines in India are from China. A cut in the imports could damage the electric power sector. Similarly, China commands a growing segment of the cell phone market. The Indian consumer benefits from the cheap prices and latest electronic technology. If India stops these imports, they must buy it from another country which has a higher price. This will increase spending needlessly.

Indians must reconsider boycott China movement

China has competitiveness in the global market due to its low cost methods of manufacture. And while India might try to use its other neighbors such as Nepal, Sri Lanka, or Bhutan, the scope for trade remains very limited.