Trade and Development Review, Vol 13, No 2 (2020)

Achieving Self-reliance through Boycott of Chinese Products? Indo-China Trade Relations after the LAC Conflict

Rajat Acharyya

Abstract


Economic ties with China – be it trade, or Chinese FDI --- all have been under scanner and review after the Galwan and LAC conflict. A series of events – retaliatory in nature – have unfolded since then including banning of a large number of  apps having direct or indirect involvement of China, reviewing of import restrictions and a call in social media to boycott Chinese products. This paper reviews implications of these events for India’s trade and growth prospects. Available data reveals heavy dependence of India on China for her import requirement of parts and components for a wide range of manufacturing goods including drugs and pharmaceutical products, telecom, electrical and electronic goods, and automobiles. So, boycott of Chinese goods and consequent fall in imports may jeopardize growth unless economic ties with other countries are strengthened. Efforts must be increased manifold in trade negotiations with other potential source countries if we are to reduce our dependence on China for our import requirements in the long run.


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