Professional Documents
Culture Documents
Sagar Agrawal
Rajwin Patel
Pratik Gandhi
Abstract:
The case study provides the deeper knowledge about the impact of Chinese goods over
Indian Economy as a whole with which making further inroads in the India with all other
factors as well. As the growth of both the economies we had to see how it has affected
both the countries on a macro-level.
Importance:
China and India are two neighboring countries in Asia who share the two largest
population of the world and in fact added together they represent nearly one third of
humanity. Globalization has imposed internal pressure and external pressure to bear
on both India and China. Hence, the topic gets important for the Management World to
go ahead and analyze the patterns and trends these both countries have on each other.
Methodology:
The Research consisted of series of articles, blogs and recent News which we have
referred to.
Essentially, Secondary data was accumulated and then analyzed being unbiased about
the topic with which you can see the Case established.
earch:
China is our major competitor in sectors like software, hardware, electronics etc. We
should not allow China to dump their excess produce here. The small-scale industry
(SSI) contributes 35-40 per cent to the total manufacturing in India. So it is the SSI,
which suffers most because of Chinese goods. For instance, data reveals that 60 per
cent of the industrial units in the industrial belts of Thane and Bhivandi near Mumbai
have been closed down. Many small-scale Indian companies have stopped
manufacturing their own goods as now they import them from China. That’s why many
Indian workers have lost their jobs. This shows that the objective of SSIs of providing
employment to the rural youth of India is defeated completely.
In the last one decade Chinese labor has developed the skills of manufacturing
electronic goods like semi-conductors, telecom equipment, power equipment etc, which
helped them to capture big markets of America and Europe. It is no surprise that they
have been successful in capturing the Indian market too. Although Indian labor can
meet these challenges by improving their skills, the Indian manufacturing scenario is
hampered due to stringent and weak labor policies.
It is the high time that our political leaders change their mindset and bring about the
right kind of reforms without losing precious time in endless discussions. We must take
necessary steps so that we do not fall prey to the DRAGON’s designs of capturing a
major share of our growth, which could prove to be a setback for our economy in the
future.
Analysis:
One of the most important political events of the late twentieth century has been a world
shift towards more liberal policies and free trade with reduction of protectionism and it
has happened in most regions of the world with remarkably few exceptions. In many
countries, the public debt became unbearable and the ideology of promoting import
substitution and capital controls were replaced by policies in favor of pro-market and
economies made it difficult for China and India to take advantage of globalization.
Conclusions:
Positive aspects:
Advanced Features
Widely available
Negative aspects:
Unsafe products
Non Long-lasting
Outflow of capital
Q1) What measures should be taken to avoid the dominance of Chinese goods in
Indian market?