Even though Holi and Diwali are Indian festivals, the colors and fairy lights used to celebrate them are Chinese. With the passing time we failed to realize just how much China has occupied our lives. Just look around you 1 out of 5 items are MADE IN CHINA.
However, it is never too late to self actualise, and move towards making India self-reliant – the coronavirus outbreak in China provides an opportunity for India to expand exports.
Let us talk facts, with some consequences
- China accounts for approximately 19.71% of global GDP at purchasing power parity and it will impact the economy globally. Therefore, it is estimated that the global GDP will suffer an impact of around – 0.5%
- In terms of trade, China is the world’s largest exporter and second-largest importer. It accounts for 13% of world exports and 11% of world imports.
- China is India’s second largest trading partner. The country accounted for 13.7% of India’s total imports in 2018-19 while 5.1% of India’s total exports went there, according to Ministry of Commerce’s data. Exports from India include organic chemicals, cotton, ores, plastic items, salts and so on. Imports range from electrical machinery, nuclear machinery, optical and medical instruments, vehicles and accessories to iron and steel. Analysts from S&P estimate that the Chinese economic slowdown due to the coronavirus outbreak could peak in the first quarter before a rebound begins in the third quarter.
- The dependence of India on China is huge. Of the top 20 products (at the two-digit of HS Code) that India imports from the world, China accounts for a significant share in most of them.
- India’s total electronic imports account for 45% of China. Around one-third of machinery and almost two-fifths of organic chemicals that India purchases from the world come from China. For automotive parts and fertilisers, China’s share in India’s import is more than 25%. Around 65 to 70% of active pharmaceutical ingredients and around 90% of certain mobile phones come from China to India.
Globalization certainly has done some good, but it also enabled China to take advantage and exploit our resources. Encouraging decentralized globalization in such a scenario would help.
As quoted by David Brower “Think globally, act locally.” can be the foundation of decentralised globalization. One way to adopt this is through block-chain technology; the eventual ubiquity of blockchain technology will completely decentralize the global social, political, financial, economic and informational processes. Blockchain technology will help billions of people overcome poverty and protect them from global financial crises. It will ensure stable social and financial growth of every individual through providing direct access to the global economy and enabling active participation in it. This is just one of the measures we can look forward to, others being
- Accelerate make in India by incorporating new startups which produce components such as the APIs (Active Pharma Ingredients) which are imported from China.
- Utilize the power of lower labor costs in our home (one third of China’s) and abundant skill availability to tap various MNCs which have stopped their production plants in china.
- Manufacture and sell at lower price to European and American states which are now in a bitter relation with China, so as to increase our exports.
According to the UN trade report the world economy will go into recession due to the coronavirus pandemic, causing serious trouble for developing countries with the likely exception of India and China.A possible reason for this is the high population density of India. It’s time to look at the bright side now,turn the odds into our favor and move towards a new Digitalised Economy with India being at top.