China's investment in India
Amidst the boycott of Chinese goods, it is necessary to know that China has invested in many start-ups in India. Not only start-ups, but they are also continuously increasing their investment in other areas.
The Gateway House, Mumbai-based foreign affairs think tank, has identified 75 companies in India that have investments in services such as e-commerce, fintech, media / social media, aggregation services and logistics, and China. According to China, India has a major stake in 18 out of 30 unicorns. Unicorn is a private startup company with a valuation of one billion dollars or more. The report states that China has gained control of India due to high investment in the technology sector.
China has invested $ 5.5 billion in Indian startups from 2014 to 2019.
Many big Chinese companies have increased investment in India in the last 5-6 years. According to reports, China has a major stake in 18 out of 30 unicorns of India (valued at $ 1 billion or more).
According to a report, Chinese companies invested $ 51 million in India in 2014, which rose to $ 1230 million in 2019. Among the Chinese companies that invested in India were several giants including Alibaba, Tenshet, and TR Capital. Are included. Tenet has invested in 19 companies in India, Shunwai Capital in 16 companies, Swastika in 10 companies, and Xiaomi in 8 Indian companies.
Chinese smartphone makers have made an impact on the Bharti smartphone market. The smartphone market in India is around Rs 2 lakh crore. Chinese brands such as Oppo, Xiaomi, and Redmi have captured more than 70 percent of the mobile market. Similarly, the Chinese brand occupies 45% of the 25 thousand crore television market.
China's investment in India's pharma sector
According to a statement by the Government of India in Parliament, Indian pharmaceutical companies import about 70% of active pharmaceutical ingredients from China. In the 2018-19 fiscal year, the country's firms from China. Imported medicines and APIs worth $ 2.4 billion.
India is one of the top countries in the world in terms of the export of medicines. The country's pharmaceutical exports increased by 11 percent to $ 19.2 billion in 2018-19. In this, generic drugs form the largest share of the Indian pharmaceutical sector and have a market share of 75 percent in terms of earnings. To a large extent, dependence on Chinese APIs is also the reason. India gives priority to Chinese raw material because it is very cheap and the material is easily available there.
Even during this period of Corona, the question of which hydroxychloroquine has increased, its raw material called active pharmaceutical ingredients (API) is imported from China. Another exported drug Crocin, whose API paracetamol also comes from China.
Prof. of Sichuan University School of International Studies. Huang Yunsong told the BBC, "Raw material companies in China will not be able to run without India's pharmaceutical manufacturers."
Chinese companies in the automobile sector include Tata, Mahindra, Ashok Leyland, and Japanese companies Maruti-Suzuki, Honda of India. And Toyota's counterparts are in the race for entry. Despite the current bad times in this sector, Chinese companies see huge potential in the field of electric vehicles, bus trucks, and passenger vehicles.
China's SAIC Motor Corp and BYD Auto Company Limited have come to India and are planning to expand.SAIC's SUV Hector received a strong response. Since its launch in July 2019, the company has sold 16,000 vehicles. The company has also launched its electric car ZS EV. With a starting price of Rs 20.88 lakh, this car has received 2,800 bookings in 27 days. Wanfeng Autowheel has already invested Rs 350 crore in 2013 at the factory in Bawal, Haryana. Recently, China's leading automobile company Great Wall Motor (GWM) announced an investment of one billion dollars at its plant in Maharashtra.
The main things that India sells to China are:
Cotton i.e. cotton
copper ie copper
diamond and other natural gems
. The things that China sells to India are:
Machinery
Telecom equipment
Electric power equipment
Organic chemicals
fertilizer
India's trade deficit with China
India's trade deficit with China was only $ 3 billion in 2000, which increased to $ 51.8 billion in 2008, making China the largest trading partner of India replacing goods in the US. In 2018, the trade relationship between the two countries reached new heights and the trade between the two reached $ 95.54 billion. The Indian Ambassador to China claimed in June that India-China business would be 100 in 2019 this year. Will cross billion dollars.
According to the Indian Ministry of External Affairs website, in 2018, India China had a turnover of $ 95.54 billion, but the goods it exported to India were worth $ 18.84 billion. China bought fewer goods from India and sold it five times more.
Exports from China to India stood at $ 74.72 billion in the year 2019. In 2018, China exported $ 76.87 billion to India. Meanwhile, India's exports to China decreased to $ 17.95 billion. It was $ 18.83 billion the previous year. India's trade deficit with China stood at $ 56.77 billion in 2019. It was $ 58.04 billion in 2018.
The way forward:
Will the Indian campaign to boycott Chinese goods affect the relations between the two countries? on this question, PROF Swarn Singh says that it can have political implications. He says, "China's boycott of India will have a far greater political impact than the economic impact on China which is facing global anger for the COVID-19 epidemic."
Dr. Mahajiban Banu believes that the social media campaign was an emotional temper. She says, "The things that are said in social media are always for a short time and I don't think this campaign is going to spoil the trade and political relations between the two countries."
But how is China reacting to the campaigns that are going on in India regarding the boycott of China?
Prof. Huang Yunseong says that China has no reaction to this. "For the anti-China movement on Indian social media, from removing Chinese software to boycotting Chinese products, Chinese people are not paying much attention to this. We know what is happening in India. All this But the chances of retaliating from China are slim. "
If China has influenced the Indian economy, then India has also made some impact on Chinese society. For this, its softness should be appreciated. As prof. "We cannot abstain from Bollywood films, Darjeeling tea, yoga, and Indian restaurants due to some incidents happening at LAC," says Fraser Huang Yunseong.
Prof. Huang Yunsong believes that this is an issue between the two countries. They say, "Put it simply, it is a structural issue because our economies are at different levels of development. To address this issue There is a need for long-term planning and patience on both sides. If you look at it the other way, India is benefiting from this trade imbalance. By importing comparatively cheap Chinese products, India has saved the treasured foreign currency reserve and its Capital efficiency is improved. "
Dr. Mahzabeen Banu of the think tank Society for Policy Research and Empowerment in Delhi argues that China cannot ignore the large Indian market. She says, "We are dependent on imports from China, there is no doubt about it." "Besides, China cannot do away with itself given the huge potential of the Indian market."
Prof. of JNU's School of International Studies, Swarn Singh says that many countries are suffering from a trade imbalance with China. "China's trade with India has become almost one-sided in the last 15 years and is true of China's trade with most other countries." Any bilateral trade, even unilateral trade, mutual dependence, he says. makes. It depends on many elements - the nature of policies, political leadership, and economic power - that gives any country the right to deal with trade-related tensions, whether it is boycott or tariff increase. "
Prof. Huang Yunseong believes It is that the two countries need each other. They say, "China cannot ignore India. In a global economy, countries are dependent on each other. I favour promoting a positive mindset to deal with China-India relations. Especially when the world has become so weak due to the COVID-19 epidemic. If decision-makers choose to adopt geopolitics over economic reasoning, the global supply chain will certainly be disrupted. Only in that unusual situation, India can afford to ignore China, which will cost a lot. ”
Source
https://www.bbc.com/hindi/india-52923781
https://www.bbc.com / hindi / india-50003776
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