We are in the midst of fighting a pandemic. With our backs to the wall. The last thing we need is picking a fight with an opponent who has walloped us in the past.
But bigger issues are at stake here.
The Modi government has coined wonderful motivating slogans of Make In India and Atmanirbhar Bharat. But nothing beyond that.
If we compare performance of Modi with Xi Jinping, Modi falls way short.
China, through selective protectionism, has nurtured development of its software industry. While Indian software industry takes pride in being support-staff to the world, Chinese software developers have developed indigenous versions of Google, Facebook and Twitter. It could not happened if these multinationals would have been allowed to swamp the Chinese market, as they have the Indian market.
In Modi’s defence, he has tried to reign in the trade deficit with China, which ballooned during the gong-ho UPA years. But it still stands at a scary 48.7 billion USD.
The Chinese misadventure has provided the intellectual and ethical cover for India’s turn to protectionism.
India has made a great start by banning Chinese apps. It should give space for Indian apps to occupy the slots vacated. That would be done by putting road blocks for apps from other countries to prevent them from dominating the Indian market.
Lots of products are being imported from China but which need not be. Like polyester and blended yarns, toys, white goods etc.
Also, a major loophole exists for China to exploit. They dump goods in India using existing FTA Free Trade Agreements with neighbouring countries. Goods originating from China are shown to be from a FTA country which has done minimal or nil value addition. Indian government can easily put a stop to this as the import figures of the exporting neighbour would lay bare its shenanigans.
The new GST regime made it more attractive to import many textile items rather than manufacturing it here in India.
NDA government’s delays in rectifying the above are inexcusable.
Let not a good skirmish go in vain.
