The growing Indian middle class and ever growing purchasing power along with most densely populated nation in the world making India most lucrative country for Chinese products. While Indian companies struggling to make difficult to meet both end due to stiff competition from Chinese companies and cheaper product from Chinese companies. On the other hand Indian govt. still failed to open up domestic industry from the clutches of Licence-Inspector-Permit raj and unending corruption making Indian companies most uncompetitive along with inflexible labour laws, higher taxes and compel to deal with multiple govt./ semi govt. bodies making the matter worse.
If India ban all Chinese products and reform Indian industries by removing all govt. control and lowering taxes and creating flexible labour laws with better R&D centres and facilities, Chinese economy will be a big blow and atleast 10-15% of their production and export can be affected. The main reason is India importing most of the product from China. Indian consumers mostly using Chinese products and Indian companies mostly importing various materials parts, spares and other finished and unfinished products to India.
The recent development against anti-India activities by China and growing China-Pak axis against India is a worrisome fact. In this scenario, India and its Asian neighbours can be a movers and shakers for Chinese economy by discouraging Chinese products like imposing more duties and other stringent measures and at the same time liberalizing Indian Industries especially small and medium industries by extending various concessions and removing bureaucratic delays and red tape makes domestic market more competitive as well as export oriented.
The Chinese authorities must understand that India always benefited Chinese in their industrial growth despite Chinese anti-India stand. The time has come to improve bilateral, cultural and international co-operation and mend their ways with India instead of making anti-India and myopic stance on Chinese side.
Chinese policy makers must also consider that Pakistan is a very small market compare to India due to higher growth and growing middle class population.
Dragon beware, now you are sleeping with the enemy. Understand who is the real enemy. India never a threat to Chinese in any way. It is Chinese need and greed on energy, minerals and other raw materials making the them uneasy.
In the coming days, more and more countries will ban on import of Chinese products into their country making the Chinese difficult to survive in the long run. Before flexible the muscle, think again.
