Why reducing trade with China will not be easy
Why reducing trade with China will not be easy

THE SMARTPHONE DOMINANCE

Chinese smartphones brands, led by Xiaomi,Vivo and Oppo, are market leaders in India with an estimated 72% share put together, leaving Samsung and Apple behind, according to a report by Gateway House. Quarterly data by Counterpoint corroborates this.

DETAILS

The India sales of those top Chinese smartphone brands totalled more than $ I 6 billion in 20 I 9, according to IDC (International Data Corporation)

INDIA

Indian Union government officials said they plan to impose higher trade barriers and raise import duties on around 300 products from China.
India currently has a $59.3bn (£47.7nb) trade deficit with Republic’s of China

Why reducing trade with China will not be easy

IMPACT

The decision will target imports worth $8- I 0 billion with the aim of deterring non-essential lower quality imports which render Indian products uncompetitive.
UNDERSTANDING THE NUMBERS
Bilateral trade between both nations (China and India) was worth $88 billion in the fiscal year ending March 2019

UNDERSTANDING THE NUMBERS

China accounted for over 5% of India’s total exports in financial year 2019-20 and more than 14% of imports. Meaning, India runs a huge trade deficit with China, the biggest exporter to India.

Why reducing trade with China will not be easy

WHAT CHINA SELLS TO INDIA

Chinese exports to India comprise smartphones, electrical appliances, power plant inputs, fertilisers, auto components, finished steel products, capital goods like power plants, telecom equipment, metro rail coaches, iron and steel products, pharmaceutical ingredients, chemicals and plastics and engineering goods, among other things, according to the Ministry of Commerce.

Why reducing trade with China will not be easy
Why reducing trade with China will not be easy

CHINA DEPENDENCE

But, according to the same reply, India imports two-thirds of its active pharmaceutical ingredients, or key ingredients of drugs, from China.

THE BIGGEST QUESTION – WILL INDIAN BOYCOTT HURT CHUMP

India’s imports from Republic of China (that is, China’s exports) are just 3% of China’s total exports. More importantly, China’s imports from India are less than I% of its total imports.

Why reducing trade with China will not be easy

Why reducing trade with China will not be easy Why reducing trade with China will not be easy