Are we really moving towards ATMANIRBHAR?

 

                    Are we really moving towards ATMANIRBHAR?

 

What's the point in shouting this word out loud in public when the facts show the complete opposite?

Today, most of the smartphones that are being used in India are still Chinese or having Chinese spare parts. Similarly, our Start-ups are Indian but in them, the most investments are by Chinese corporations. Then why are we stressing on “Vocal for Local”? How does it make any difference?

Since the last few months, #Boycottchina is trending in India. But is this only jingoism? An emotional sentiment? Or it has any truth in it?

First, let’s understand what is this Atmanirbhar Bharat idea. In simple words, we are trying to reduce the dependence on China and boosting India’s trade globally.

The problem with china is this number “50 billion” which is our trade deficit (Total imports – Total exports). Thus, our total imports from China is 5 times more than exports. Why is this difference?

One big reason is dumping by China. In simple words, China identifies the needs of a nation and then oversupply a certain product for it. The huge supply brings down the prices, making these Chinese products more competitive than Indian substitutes.

On the other hand, China doesn’t let other countries to enter its own market due to various reasons such as currency manipulation, a state-owned enterprise, technology theft, R&D facility.

Now you will be thinking that “why not our government put a ban on Chinese products?”

The reason is simple! WTO. The world trade organization has set up certain rules due to which a member country cannot ban imports from another member country. So, our government is trying for import substitution in which we are looking for some other country to cater to our needs. But again, this won’t happen overnight!

The best way possible is making our own market self-sufficient so that we can reduce our dependence on China by importing less. And this is what India is trying to do.

A simple example can be toys! This market worth about 4500 crore rupees and almost 80% of toys come from China. India is having a huge population in which 1/3^rd are below 15 years of age, making our market attractive. But the problem is not just the Chinese toys, it is also about their quality which is not safe. Due to the high competition, about 40% of Indian toy-making companies have shut down their business. But still, the general public has closed their eyes and we only question what the is government doing?

Government has identified 12 sectors in which India can become self-reliant. One of these is medicine. India is a global exporter of 22% of generic medicine but 70% of the needed raw material comes from China. During the coronavirus period, china suddenly increased the prices of these raw material and the Indian pharma industry was affected. So, this highlights the need for producing these essential raw materials in India. Recently, many IITs have come up with low-cost versions of ventilators and it’s time to commercialize these products and put them into production right away.

As an individual, I can only suggest two ways to contribute to this campaign. These are:

1)      Be cautious while purchasing anything. Look for the details of that product and where it has been manufactured. Try buying the Indian substitutes.

2)      Put a stop in using the Chinese applications to cut their ad revenue.

 

So, we can see that government’s actions are in place but will take a longer time to be visible. This “Atmanirbhar” campaign is not 100% error-free but if we’ll participate at our ends then we can add to the pace of its growth.