Has India become a Chinese colony, seems likely

[N.Siddiqui]

The colonial pattern of trade



Noted historian Bipan Chandra wrote about the popular drain theory in pre-independent India, which was the basis of early nationalism. Among other things, it flagged how a free trade policy followed by the British in India saw an excess of exports of raw materials from India but without any improvement in the corresponding economic prospects.

In his book India’s Struggle for Independence, Chandra wrote how the essence of 19th century colonialism lay in the transformation of India into a supplier of foodstuffs and raw materials to the British, a market for British manufacturers and a field for the investment of British capital.

India’s exports during these times were of raw cotton, indigo, opium, jute, tea and raw skin and hides, while imports were of items like cotton yarn and iron and steel products. Unsurprisingly, Britain was India’s largest trade partner during this period.

Trade economists point out that the pattern of trade between India and China reflects this colonial relationship.

“The pattern of trade between India and China is a colonial pattern of trade,” said Biswajit Dhar, professor, Centre for Economic Studies and Planning, School of Social Sciences, at Jawaharlal Nehru University in Delhi.

“Whatever limited manufacturing capabilities were there in India eroded as Indian industry couldn’t stand up to competition from China. China being the factory of the world needed the raw materials and low level of intermediate inputs to fuel its manufacturing push. And India became a supplier of these inputs,” said Dhar.

Apart from India, Australia is another country from where China imports a large amount of its input requirement, said Dhar.

He added that one will have to wait and watch to see if schemes like production-linked incentive (PLI) schemes announced by the Narendra Modi government will have a significant impact in bolstering Indian manufacturing and reducing India’s dependence on China.


Graphic: Ramandeep Kaur/ThePrint
Graphic: Ramandeep Kaur/ThePrint
Dhar also pointed out that in 2020-21, in the aftermath of the pandemic, there has been some change in trading patterns but expressed doubt whether they will be sustainable in the long run.

For instance, India’s exports of semi-finished steel products to China saw a sharp surge in the months after the pandemic. This came as China’s manufacturing bounced back the fastest compared to other countries seeing a sharp rise in demand for steel products. With demand in India non-existent due to the pandemic, domestic steel companies started exporting.

But once domestic demand picked up, steel companies mainly sold in local markets rather than exporting.

Sahai, however, was optimistic. He pointed out that the PLI scheme could see India hone its manufacturing capabilities with cutting edge technology, and this could see the import bill come down.

Also read: Meet Ravinder Passi, Indian-origin Nissan whistleblower who took down legendary Carlos Ghosn



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Has India become China’s colony? Seems like, going by what we import and what we export

Figures between 2014-15 and 2019-20 show that export of low-value raw materials & import of high-value manufactured goods characterised India's trade with China.

theprint.in

 

[Andhadhun]

Sadly its True.

Unless Indian Govt. takes some firm Solid steps to revive Manufacturing in India, this will continue to be the state of affair.

So far this has been the area of Major Failure for Modi and Co.

 

[magra]

Sadly its True.

Unless Indian Govt. takes some firm Solid steps to revive Manufacturing in India, this will continue to be the state of affair.

So far this has been the area of Major Failure for Modi and Co.

I think the govt is taking certain steps in this regard. For example, the announcement of $1 Bn cash to any company that starts a chip manufacturing facility in India.
More such steps are needed.

 

[Andhadhun]

I think the govt is taking certain steps in this regard. For example, the announcement of $1 Bn cash to any company that starts a chip manufacturing facility in India.
More such steps are needed.

Too Little, Too Late.

Reality is Modi govt. is running around like a headless chicken trying to "Make in India" and spectacularly Failing.

So far we haven't even managed to restarted the Copper Sterlite plant shut down due to "protest".

 

[magra]

Too Little, Too Late.

Reality is Modi govt. is running around like a headless chicken trying to "Make in India" and spectacularly Failing.

So far we haven't even managed to restarted the Copper Sterlite plant shut down due to "protest".

For that, Modi needs to focus more on economy and less on winning state elections. He can leave that to JP Nadda and others.

 

[Meliodas]

The colonial pattern of trade



Noted historian Bipan Chandra wrote about the popular drain theory in pre-independent India, which was the basis of early nationalism. Among other things, it flagged how a free trade policy followed by the British in India saw an excess of exports of raw materials from India but without any improvement in the corresponding economic prospects.

In his book India’s Struggle for Independence, Chandra wrote how the essence of 19th century colonialism lay in the transformation of India into a supplier of foodstuffs and raw materials to the British, a market for British manufacturers and a field for the investment of British capital.

India’s exports during these times were of raw cotton, indigo, opium, jute, tea and raw skin and hides, while imports were of items like cotton yarn and iron and steel products. Unsurprisingly, Britain was India’s largest trade partner during this period.

Trade economists point out that the pattern of trade between India and China reflects this colonial relationship.

“The pattern of trade between India and China is a colonial pattern of trade,” said Biswajit Dhar, professor, Centre for Economic Studies and Planning, School of Social Sciences, at Jawaharlal Nehru University in Delhi.

“Whatever limited manufacturing capabilities were there in India eroded as Indian industry couldn’t stand up to competition from China. China being the factory of the world needed the raw materials and low level of intermediate inputs to fuel its manufacturing push. And India became a supplier of these inputs,” said Dhar.

Apart from India, Australia is another country from where China imports a large amount of its input requirement, said Dhar.

He added that one will have to wait and watch to see if schemes like production-linked incentive (PLI) schemes announced by the Narendra Modi government will have a significant impact in bolstering Indian manufacturing and reducing India’s dependence on China.


Graphic: Ramandeep Kaur/ThePrint
Graphic: Ramandeep Kaur/ThePrint
Dhar also pointed out that in 2020-21, in the aftermath of the pandemic, there has been some change in trading patterns but expressed doubt whether they will be sustainable in the long run.

For instance, India’s exports of semi-finished steel products to China saw a sharp surge in the months after the pandemic. This came as China’s manufacturing bounced back the fastest compared to other countries seeing a sharp rise in demand for steel products. With demand in India non-existent due to the pandemic, domestic steel companies started exporting.

But once domestic demand picked up, steel companies mainly sold in local markets rather than exporting.

Sahai, however, was optimistic. He pointed out that the PLI scheme could see India hone its manufacturing capabilities with cutting edge technology, and this could see the import bill come down.

Also read: Meet Ravinder Passi, Indian-origin Nissan whistleblower who took down legendary Carlos Ghosn



Subscribe to our channels on YouTube & Telegram


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Exploitation was so much that British took the cotton from India took it all the way to Britain processed it on its looms and than brought it back. This despite all the travel was still profitable for them whereas the local industry was pushed to tatters.

 

[Andhadhun]

For that, Modi needs to focus more on economy and less on winning state elections. He can leave that to JP Nadda and others.

NOPE. Vajpayee tried that and Failed Spectacularly too.

Politics and Governance goes hand in Hand in India. Besides Modi is more of a politician than an Economist so he will alwasy do what comes naturally to him.

 

[magra]

NOPE. Vajpayee tried that and Failed Spectacularly too.

Politics and Governance goes hand in Hand in India. Besides Modi is more of a politician than an Economist so he will alwasy do what comes naturally to him.

Voters, RSS, BJP were overconfident of victory in 2004, hence they did not make as much effort as needed.
You are right, Modi is more of a politician and that hurts India.
I do not grudge his campaigning for national elections once in 5 years. But allocating personal time for campaigning in each and every state election is too much for a PM.

 

[Andhadhun]

Voters, RSS, BJP were overconfident of victory in 2004, hence they did not make as much effort as needed.
You are right, Modi is more of a politician and that hurts India.
I do not grudge his campaigning for national elections once in 5 years. But allocating personal time for campaigning in each and every state election is too much for a PM.

He understands the demands of his job far better than you.

He does what needs to be done.

Without his personal popularity high, he cannot implement NRC and UCC.

Meanwhile China wins.

THAT is the price you pay for cheering the internal enemies of India.

 

[Imran Khan]

Voters, RSS, BJP were overconfident of victory in 2004, hence they did not make as much effort as needed.
You are right, Modi is more of a politician and that hurts India.
I do not grudge his campaigning for national elections once in 5 years. But allocating personal time for campaigning in each and every state election is too much for a PM.

but he work 20 hours a day dont you see planted interviews of him ?

 

[Leishangthem]

That's just natural calling ,the east asia with china as the figure head will rise to the pinnacle of economy,influence and human civilization ,of course it's natural that india follow suit for her own benefit.
Even the west realizes they can't compete with China but iNDIA that views the world from their colonial master's lens,doesn't know anything about China's inherent august as a nation. India which can't even compete with tiny vietnam made graves mistake by strategically placing itself against China ,as a strategic competitor out of seer arrogance all while being a neighbor of China.
India gained prolifically in the past decade through chinese investment,top 10 of Indian unicorns are all financed and taught by chinese investors. Next decade will be a hellish ride for India ,after discarding what has been most net positive interaction in trade and commerce in the history of the nation.

 

[magra]

He understands the demands of his job far better than you.
He does what needs to be done.

Without his personal popularity high, he cannot implement NRC and UCC.
Meanwhile China wins.

THAT is the price you pay for cheering the internal enemies of India.

He rode to power in 2014 promising economic success. Few cared about other items on his agenda such as Ram Mandir. He failed on his prime area - economy. He is winning only because the opposition is weak and fractured.
And meanwhile India continues to lag behind China as Modi knows that economy or not, people are going to elect him as they have no better alternative at the moment.

but he work 20 hours a day dont you see planted interviews of him ?

I do want to believe that he works hard, although I dont believe in the 20 hrs per day thing.
I am questioning his area of attention.

That's just natural calling ,the east asia with china as the figure head will rise to the pinnacle of economy,influence and human civilization ,of course it's natural that india follow suit for her own benefit.
Even the west realizes they can't compete with China but iNDIA that views the world from their colonial master's lens,doesn't know anything about China's inherent august as a nation. India which can't even compete with tiny vietnam made graves mistake by strategically placing itself against China ,as a strategic competitor out of seer arrogance all while being a neighbor of China.
India gained prolifically in the past decade through chinese investment,top 10 of Indian unicorns are all financed and taught by chinese investors. Next decade will be a hellish ride for India ,after discarding what has been most net positive interaction in trade and commerce in the history of the nation.

India never intended to position itself against China. It still wants to partner China in trade and economics. However, everytime there are border irritants which hinders the relationship.
India will be cautious in the relationship from now on. That does not mean enmity but no friendship either. Strictly business relationship.

 

[Old School]

A lot of ruling BJP leaders have business relationships with China and that will only grow in the future. It is to note that Congress was a real stooge of the west which always wanted to undermine China instead of making any real economic progress in India. Congress championed laughing stocks like 'Hindustan Ambassador' car and Arjun MBT. Many Congress leaders served the Soviets including Indira and Co. Even then the Soviets duped Indira Gandhi which led to 'Operation Blue Star' in Amritsar in 1984.
China is good for India as an wake up call . We will even see that BJP joining Chinese BRI at some stage while milking the west at the same time.

 

[Andhadhun]

He rode to power in 2014 promising economic success. Few cared about other items on his agenda such as Ram Mandir. He failed on his prime area - economy. He is winning only because the opposition is weak and fractured.
And meanwhile India continues to lag behind China as Modi knows that economy or not, people are going to elect him as they have no better alternative at the moment.

That is pure BS. Modi's claim to fame was Godhra and All of India who voted for him knew that.

In short, India wanted a man who would do what needed to be done. PERIOD.

When one goes to rural pockets, the conversation on politics revolves around basics - water connection, electricity, cooking gas, toilets, health cards etc This is where PM Modi has been delivering every single day.

The development juggernaut has not stopped for a single moment.

Modi is not going to lose any vote because India loses to China in Manufacturing. That is just the crap elite India keeps wishing.

 

[Robbie]

Too Little, Too Late.

Reality is Modi govt. is running around like a headless chicken trying to "Make in India" and spectacularly Failing.

So far we haven't even managed to restarted the Copper Sterlite plant shut down due to "protest".

He is dismantling the license permit quota raj of Congress. The ecosystem and way of life Congress used for 65 years has steeped deep in India. It will take time to remove it.

IBC, GST, Mines reform, farm reform, labour reform. Much has been done, much remains. I think it will take the remainder of this term to complete the structural reforms which will bear fruit in time.