Rs50,000 cr loss to Chinese exporters as Indians say no to their items this festive season also
Keeping in view of ongoing tensions with China after Doklam and Galvan valley incidents, a sizeable number of Indians said “no” to Chinese products while shopping during this festive season also.
According to the Confederation of All India Traders (CAIT), they are expecting estimated losses to the tune of Rs50,000 crore on part of Chinese exporters this year due to Indians boycotting products from China in the domestic markets. This is the second consecutive year when consumers in India are boycotting Chinese goods.
“Like previous year, this year too CAIT has given a call to boycott Chinese goods and it is certain that China is going to suffer a business loss of about Rs50,000 crore in terms of stoppage of import of Chinese goods by Indian traders,” CAIT stated in the statement.
Anti-China rhetoric has reduced the attractiveness of made-in-China products among Indian customers. Earlier, Chinese products were in great demand during the festive season in India, with China-made firecrackers, decorative LED lights and Chinese lamps and lanterns selling like hot cakes ahead of Diwali due to their cheaper prices.
Another important change, observed recently, is that consumers across major cities in the country do not really seem interested in buying Chinese products, which is likely to increase the demand for Indian goods instead. CAIT secretary general Praveen Khandelwal said a recent survey conducted by the body’s research arm in 20 “distribution cities” showed that so far no orders for Diwali goods, firecrackers, or other items have been placed with Chinese exporters by Indian traders or importers.
These 20 cities are — New Delhi, Ahmedabad, Mumbai, Nagpur Jaipur, Lucknow, Chandigarh, Raipur, Bhubaneswar, Kolkata, Ranchi, Guwahati, Patna, Chennai, Bengaluru, Hyderabad, Madurai, Pondicherry, Bhopal, and Jammu.
For context, during the five-month festive season from Rakhi to New Year’s Day every year, Indian traders and exporters usually import goods worth about Rs70,000 crore from China. However, during the Rakhi festival this time, the Dragon was reported to have suffered losses to the tune of Rs5,000 crore and then again to the tune of Rs500 crores in Ganush Chathurthi.
If the same trend continues for Diwali, it would clearly indicate that not only are Indian traders boycotting Chinese goods, but consumers, too, are losing the will to buy products made in China.
Last year, a survey by LocalCircles, revealed that 71 per cent said they consciously chose not to buy a Chinese product
Besides, ahead of the festive season, especially Diwali on November 4, several States have imposed restrictions on firecrackers and also announced Covid-19 measures for checking virus spread. While some States have banned firecrackers, others have imposed a partial ban on green crackers. China is the biggest source of cheaper firecrackers and lights.
Delhi has ordered a complete ban on the sale and bursting of firecrackers in the national Capital till January 1, 2022. Maharashtra Government has urged people not to burst crackers this Diwali and issued directives keeping the air pollution and Covid-19 in mind. Punjab has given only two hours to burst crackers on Diwali.
