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India's imports from China to see a major decline: Report

Lil Mathew

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NEW DELHI: Demand for Chinese products inIndia is decelerating and imports from the country would see a "major hit" in the coming months, according to a report, which revealed a significant shift in the consumption pattern of Indian consumers towards domestic products.

The analysis by the PHD Chamber of Commerce & Industry said increasing competitiveness of India's production capabilities to match its Chinese counterparts due to the improvement in theease of doing business was another factor responsible for the trend.

"Indian production capabilities are becoming competitive as compared with Chinabecause of many reasons such as improvement in the ease of doing business. Also, there is a significant shift in the consumption pattern of Indian consumers from the Chinese products to domestic products.

"As the Make in India programme is getting pace month after month, we can anticipate a significant improvement in the balance of trade with China," said PHD Chamber's President Mahesh Gupta.

The analysis is based on around 2,000 responses from the consumption segment and more than 100 industry stakeholders who participated in the survey.


"Demand for industrial products such as raw materials etc. is declining by 10-15 per cent and demand for consumption goods is less by 20-25 per cent," said the study.

India's imports from China increased more than 500 per cent from USD 10 billion to USD 61 billion during the last ten years from 2005 to 2015. China's share in India's imports increased from 7 per cent in 2005 to around 16 per cent in 2015, said the analysis by PHD Research Bureau.

However, the trend has been reversed and growth of imports from China decelerated by 8 per cent in the first six months of the current financial year 2016-17.

"The growth of imports from China has been decelerating and is in the negative trajectory in the recent months; no enthusiasm is seen in the upcoming months too," Gupta said.

Despite the festive season imports from China decelerated (-) 14.5 per cent in the month of September whereas imports fromWorld decelerated (-) 2.5 per cent, the study revealed.

Majority of the decline in India's imports from China has been witnessed in products such as ships and boats, tobacco products, aquatic products, pearls and precious stones, musical instruments and parts thereof, mineral fuels and oils, lead and articles thereof, cocoa products, and wool and products thereof, further revealed the analysis.

It highlighted the pivotal role of investments for the long term sustainable goals.

"FDI inflows from China to India between April 2000 and March 2015 stood at USD 288.512 billion wherein China's share was roughly 0.47 per cent which rightfully indicates that China is not a significant and substantial investor in India as compared to Singapore, Mauritius and Switzerland," the report pointed out.

http://m.economictimes.com/news/eco...major-decline-report/articleshow/55250744.cms
 
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NEW DELHI: Demand for Chinese products inIndia is decelerating and imports from the country would see a "major hit" in the coming months, according to a report, which revealed a significant shift in the consumption pattern of Indian consumers towards domestic products.

The analysis by the PHD Chamber of Commerce & Industry said increasing competitiveness of India's production capabilities to match its Chinese counterparts due to the improvement in theease of doing business was another factor responsible for the trend.

"Indian production capabilities are becoming competitive as compared with Chinabecause of many reasons such as improvement in the ease of doing business. Also, there is a significant shift in the consumption pattern of Indian consumers from the Chinese products to domestic products.

"As the Make in India programme is getting pace month after month, we can anticipate a significant improvement in the balance of trade with China," said PHD Chamber's President Mahesh Gupta.

The analysis is based on around 2,000 responses from the consumption segment and more than 100 industry stakeholders who participated in the survey.


"Demand for industrial products such as raw materials etc. is declining by 10-15 per cent and demand for consumption goods is less by 20-25 per cent," said the study.

India's imports from China increased more than 500 per cent from USD 10 billion to USD 61 billion during the last ten years from 2005 to 2015. China's share in India's imports increased from 7 per cent in 2005 to around 16 per cent in 2015, said the analysis by PHD Research Bureau.



However, the trend has been reversed and growth of imports from China decelerated by 8 per cent in the first six months of the current financial year 2016-17.

"The growth of imports from China has been decelerating and is in the negative trajectory in the recent months; no enthusiasm is seen in the upcoming months too," Gupta said.

Despite the festive season imports from China decelerated (-) 14.5 per cent in the month of September whereas imports fromWorld decelerated (-) 2.5 per cent, the study revealed.

Majority of the decline in India's imports from China has been witnessed in products such as ships and boats, tobacco products, aquatic products, pearls and precious stones, musical instruments and parts thereof, mineral fuels and oils, lead and articles thereof, cocoa products, and wool and products thereof, further revealed the analysis.

It highlighted the pivotal role of investments for the long term sustainable goals.

"FDI inflows from China to India between April 2000 and March 2015 stood at USD 288.512 billion wherein China's share was roughly 0.47 per cent which rightfully indicates that China is not a significant and substantial investor in India as compared to Singapore, Mauritius and Switzerland," the report pointed out.

http://m.economictimes.com/news/eco...major-decline-report/articleshow/55250744.cms

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So, is the total India-China bilateral trade decreasing from the $70 billion or so?
 
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in favor of balancing the trade, it would be prudent to decrease the total volume. Its like cutting the flab out.

You mean to say that China wants to buy $35 billion of something imaginary from India?
 
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You mean to say that China wants to $35 billion of something imaginary from India?
no. I meant that India is trying to balance the trade - so they cut what they can. India still may not achieve parity but its at least trying to do something to get trade balance going. As of now I dont see China wanting anything from India.
 
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China won't get hurt cause the trade with India is very small. Since a big volume of exported products are consumer goods, the only victims for this are Indian consumers, they have to pay much more for even inferior quality products. the already abysmal Indian standard of living will be pushed down even lower.
 
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China won't get hurt cause the trade with India is very small. Since a big volume of exported products are consumer goods, the only victims for this are Indian consumers, they have to pay much more for even inferior quality products. the already abysmal Indian standard of living will be pushed down even lower.


Brand building , marketing strategies , brand consciousness are all alien terms as far as Chinese OEM's go.The Indian consumer loves a bargain - value for money.The Chinese solve this by offering inferior products .Product support being abysmal , it only reinforces Chinese stereotypes in Indian minds as cheap , inferior & lousy products with even lousier product support.

It's no wonder that Chinese heavyweights in the consumer durable business like Haier, TCL , Midea , etc are nowhere in the the top 10 among consumer durable brands in India with the market leaders being Korean , American & European brands in spite of being in India for 15 + years.

The only exception to the above seems to be in the cellphone segment but a lot of this business is transacted online on b2c portals like Flipkart , Amazon , Snapdeal etc owing to the attractive discounts offered .Of late the news is that a lot of used cell phones are finding their way to unsuspecting consumers with product support again being abysmal.This is a developing story.

Ironically , while most of the reputed US , European & Japanese PC's ,Laptops , Computer peripherals , Indoor Units of Split AC's , LCD , LED TV's etc are manufactured by the same OEM's in PRC on a contract manufacturing agreement , Chinese Brands coming out of those very same factory inspire extremely low confidence in Indian consumers .

With the result , Chinese brands fall back on the old strategy of offering inferior models at a cheaper rate which tend to be problematic , don't last the distance with non existent product support thus perpetuating old stereotypes about Chinese products.It's s vicious never ending cycle .

The Chinese seemed to have solved part of the problem with acquisitions of internationally renowned brands such as IBM (Lenovo) & Motorola cellular handset business.

P.S - none of the Chinese brands in the consumer durable segment are profit making ventures in India.I speak from personal experience .How they continue to survive in India is another mystery.Rumours suggest that most of these firms are State backed.But that's a story in itself.
 
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Brand building , marketing strategies , brand consciousness are all alien terms as far as Chinese OEM's go.The Indian consumer loves a bargain - value for money.The Chinese solve this by offering inferior products .Product support being abysmal , it only reinforces Chinese stereotypes in Indian minds as cheap , inferior & lousy products with even lousier product support.

It's no wonder that Chinese heavyweights in the consumer durable business like Haier, TCL , Midea , etc are nowhere in the the top 10 among consumer durable brands in India with the market leaders being Korean , American & European brands in spite of being in India for 15 + years.

The only exception to the above seems to be in the cellphone segment but a lot of this business is transacted online on b2c portals like Flipkart , Amazon , Snapdeal etc owing to the attractive discounts offered .Of late the news is that a lot of used cell phones are finding their way to unsuspecting consumers with product support again being abysmal.This is a developing story.

Ironically , while most of the reputed US , European & Japanese PC's ,Laptops , Computer peripherals , Indoor Units of Split AC's , LCD , LED TV's etc are manufactured by the same OEM's in PRC on a contract manufacturing agreement , Chinese Brands coming out of those very same factory inspire extremely low confidence in Indian consumers .

With the result , Chinese brands fall back on the old strategy of offering inferior models at a cheaper rate which tend to be problematic , don't last the distance with non existent product support thus perpetuating old stereotypes about Chinese products.It's s vicious never ending cycle .

The Chinese seemed to have solved part of the problem with acquisitions of internationally renowned brands such as IBM (Lenovo) & Motorola cellular handset business.

P.S - none of the Chinese brands in the consumer durable segment are profit making ventures in India.I speak from personal experience .How they continue to survive in India is another mystery.Rumours suggest that most of these firms are State backed.But that's a story in itself.

Inferior products for inferior people
 
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China won't get hurt cause the trade with India is very small. Since a big volume of exported products are consumer goods, the only victims for this are Indian consumers, they have to pay much more for even inferior quality products. the already abysmal Indian standard of living will be pushed down even lower.
Govt. of India has not banned any chinese product nor done anything to affect the trade and investment. Its a section of people in India who are hurt by Chinese stand on a Pakistani terrorist. They were not perturbed when PLA crossed the Line of Control or China vetoed India's NSG membership but supporting an individual terrorist not just once but twice has really irked people in India. In fact, the boycott call was noticed during diwali festivals that means imports were already done. The real impact will be seen now because the impact was borne by the Indian retailers who will now think ten times ordering a chinese product.

I dont think people boycotting chinese goods will be really impacted because when chinese goods entered Indian market they were very very cheap / less expensive by Indian standards but now a days the prices are no longer competitive but there are no Indian products for comparison. Also the MNCs that are making in China and selling in India will seriously look into Make in India scheme and even Chinese Brands will find it more lucrative to start producing in India rather than exporting to India from China.

This may not impact China significantly but it is certainly going to give a boost to Indian manufacturing sector. Chinese investment in India is not significant but other global brands will not like to lose Indian market and hence be compelled to start manufacturing in India which will yield far greater results for India.

Time for China to ponder if its worth supporting a terrorist.
 
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I doubt this report, Indian national stats and data are always politically influenced.
 
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