Sunday, January 13, 2008

India is becoming increasingly dependent on imports from China?

In Indian markets one finds a large percentage of “Made in China” cheap products. Already there is uproar about the toxic nature of the colorful China - made toys and dress materials. Quality of the products has been a suspect. Then, why the Government of India is encouraging such a one-sided business and jeopardizes the growth of its own small scale industries?

It is reported that the percentage of imports from China has risen from 4% (2001-02) to 9.4% in 2006-07. India’s trade with China has increased 10 folds to a whopping US$25 billion in seven years! Concern is expressed regarding the near-monopoly of Chinese exports to India in certain critical sectors. Chinese import of Indian goods is only 1.3% of China’s global imports. The Indian government should review the imports/exports situation from China and ensure that the Indian products such as pharmaceuticals, IT services, heavy engineering, etc. are also exported to China in equal measure to have a win-win situation for both the countries.

Let the country be not over-dependent on Chinese cheap imports and compromise on the quality of the goods imported. India China Bhai Bhai is OK, but one remembers the Chinese invasion of India in 1961.

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