I said imports contribute to domestic inflation. If you import a tv from the US, then that tv will be more expensive than the exact tv imported from China. Therefore the import from the US will contribute to higher prices (inflation) in India. Now consumers will have to pay a higher price for the tv from the US than the tv from China. Higher cost of production is passed onto the final consumers.
So yes, since our goods are low priced goods, it keeps domestic inflation in India lower than it would have been had you imported goods from a country like the US.
It's called imported inflation.
The low priced Chinese goods make things affordable to the average Indian consumer which increases consumption in India contributing to your growth.
Be mature about it and learn. Have an open mind to accept different points of view.
This is a much better post without the usual mandatory abuse. However it is still wrong and this is why.
You have given the example of a tv. A simple & straightforward example. An Indian consumer in the market for such a tv, would have the option of a Chinese one or a U.S.one (your choice) Your argument is that since the cost of an American TV would be more than the Chinese one, it would add to inflation. That would only work if the consumer & all such buy those TV's at any price. In the face of increasing prices, there will be a drop in demand. This is true for a whole bunch of products. If you further assume that such a situation opens the market for an Indian alternative, including Chinese , American or any other companies opening an Indian unit, you would see that the situation is not as simple as made out by you. For example Nokia opened an Indian unit for mobiles because they percieved a market, that has now been swamped by phones coming in from China. If for whatever reason, there is a tightening of supply, demand will eventually force a local alternative. Unlike other countries, India's size of population is an asset. Regardless of how rich people are, the Indian market for consumer goods, by sheer number, will always be bigger than most other countries. People cannot buy 10 phones each to make up the number. Eventually that market, as it goes higher up the chain, is not one that can be ignored. In the long term, very few want to leave this market unexplored. The counter example to yours would be in automobiles. India's high duty structure has created a rubust domestic market, including of many international players who even use India as an export base. According to you, such a thing could never happen. Yet it exists. Inspite of China being a bigger player.
Chinese imports do help in giving many Indians access to lower priced products but to take away from that the idea that Chinese imports are simply untouchable would be a very wrong reading.
I'm always open to different points of view, I certainly do not believe that my view is the only one nor that it is necessarily the correct one. It is however difficult to have respect for someone who prances around with a chip on their shoulder.
