Smartphone market in the country is 2 lakh crores. , 72% share of Chinese companies; It is very difficult to remove them from the market

Posted on 20th Jun 2020 by rohit kumar

Mumbai. The ongoing confrontation between India and China in Galvan, Ladakh has once again intensified the discussion about the business and dominance of Chinese companies in India. India has emerged as a very large market for China. Both countries have a very large consumer base due to the large population. The cheap products of Chinese companies have established their roots in India so much that it is very difficult to uproot them. Not only this, but Chinese companies are also investing in India.

 

However, the Indian government is looking to use its market as a weapon. Chinese companies are unlikely to get any contracts from the Government of India or the private sector right now. The most important thing is that the chances of Huawei company entering India's 5G market have reduced significantly.

 

On the question of closure and boycott of Chinese companies, Kishor Ostwal, CMD of CNI Research, says that India cannot shut down the import or other business of any country. The reason for this is the World Trade Organization (WTO). According to WTO rules, the government of a country cannot stop imports or businesses. If this happens, then China will stop India's trade. In such a situation globalization will be over. People did not understand what our Prime Minister said. He had said that the country should become self-sufficient. He did not talk of a boycott.

 

The Prime Minister says that self-reliance means that you can boycott anything from yourself. Customers and companies can do both if they want, but the government cannot. Therefore, it will be necessary for companies and the public to think about how to stop the purchase of Chinese goods. As BSNL and Railways have taken steps. Other companies can take this step if they wish. The WTO has both China and India members. Apart from this, India still has less technology to develop its products and dependence on imports is very high.

 

Smartphone: The smartphone market in India is 2 lakh crore rupees. Of this, products from Chinese companies account for 72 percent.

Option: India has no option in this matter. The reason is that Chinese brands are far ahead in every price segment and R&D.

 

Telecom Equipment: The market for telecom equipment in India is 12,000 crore rupees. Chinese companies account for 25 percent of this.

Option: India can do it, but it will be expensive. Telecom companies can increase procurement costs by 10-15 percent. But if these companies adopt the option of US or European suppliers then they may suffer loss of vendor financing option.

 

TV: The television market in India is worth Rs 25,000 crore. Smart TV accounts for 42 to 45 percent of Chinese companies. Non-smart TVs account for 7-9 percent.

Option: India can, but it is quite expensive. China's smart TV is 20–45 percent cheaper than India.

 

Home appliances: The market size of this segment in India is 50 thousand crores. Chinese companies account for 10–12 percent of this.

Option: Easy enough for India. But this can change when big Chinese brands enter India very cheaply.

 

Auto Component: The market size of this segment in India is $ 57 billion. Chinese companies account for 26 percent of this.

Option: Difficult for India. Will have to spend a lot on R&D

 

Solar Power: Its market size in India is 37,916 MW. Chinese companies account for 90 percent of this.

Option: It is very difficult for India. Manufacturing at the domestic level is weak. While the other option will be costlier than China.

 

Internet App: Internet app in India has a market size of 45 million smartphone users. 66 percent of people use at least one Chinese app.

Options: Easy. But this will only happen when Indian users by-tick tick-talk. So far, domestic apps have failed in this case.

 

Steel: The market size of steel in India is 108.5 MT. Chinese companies account for 18-20 percent of this.

Options: This can be done. But it will have to be priced as much as China. But this is not possible on some products.

 

Pharma-API: Pharma API has a market size of $ 2 billion in India. Chinese companies account for 60 percent of it.

Choice: Very difficult. Other sources will be quite expensive. There are regulatory difficulties as well.

 

Economist Arun Kumar says that Indian imports from China are of many types. For the past several years, such campaigns have been heard live. It does not have any effect because the product we are getting in the market for 10 rupees is given by China for 5-6 rupees. It is up to the public to stop using all the products. Officially no such restriction can be imposed. This would be a violation of WTO rules. The entire case of boycott or boycott is on the industry and the public.

 

They say that you cannot impose too much duty. WTO rules on this too. Also, if you stop importing from China, how will you import from other countries? The logistics of China extend to many countries and from there the goods of China also come to India. China also has its share of goods that come from many countries.

 

The government still needs to work a lot to increase technical capacity and develop industries. Rajeev Singal, the trustee of the India Merchant Chamber, says that the opposition to breaking trade restrictions with China and importing their goods into our country is right, but we have to remove practical bottlenecks before that. The government cannot take any such step due to the agreement reached with the World Trade Organization. He will have to prepare several special economic zones so that we become self-sufficient first.

 

By providing cheap land in such zones, the government will give entrepreneurs a discount in GST, provide tax holidays and simplify the labor law, then we will automatically become self-sufficient and our dependence on China will be eliminated. We should not forget that many important instruments such as infrared thermometer, pulse oximeter, etc. are still being sourced from China to deal with the corona epidemic.