Regardless of the continuing disengagement on the India-China border following a tense weeks-long faceoff, there appears to be no let-up in calls to ban Chinese language items.

At the same time as concerted efforts from either side regularly take the sting off the strain at Ladakh, native business finds itself in appreciable dilemma over what occurs if/when India really severs decades-old enterprise linkages with its trans-Himalayan neighbour.


In an interview at the moment, senior economic system commentator Swaminathan Aiyar put the vexing situation in perspective. Rejecting the favored notion that the China story could possibly be over for India, Aiyar highlighted the hazards of plunging headlong into an import ban. China have to be despatched a stern message however not on this method, he insisted.

There’s a want to attract a transparent line between items that may be banned and those that may’t be, he stated.


There may be not a lot draw back to banning Chinese language apps, kites, candles, clocks or toys, Aiyar defined, as a result of such a transfer is not going to enhance client costs right here owing to the truth that India has different choices accessible at roughly comparable value factors. But when India goes and bans stuff like Chinese language equipment or intermediate items, it is going to harm the Indian economic system deeply as a result of no different nation can present us the identical stuff on the value that China does, he cautioned.

ET On-line

getty-image The hazards of going all out in opposition to China, in keeping with SA Aiyar

The bottomline of the argument is that whereas banning apps or toys will not flip India right into a high-cost economic system, a ban on equipment or intermediate items will, to the nice detriment of India’s pursuits.

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If India goes forward with a ban on such items, it is going to then lose out to different international locations that proceed with Chinese language imports, Aiyar reasoned. He cited the instance of ASEAN nations to make his level clear: These nations have an extended historical past of bitterness with China however they’ve by no means banned Chinese language items. If India goes for a ban, it is going to merely lose competitiveness, he stated.

Put checks and balances on completed or client items by all means, however do not contact capital items or intermediate ones — is what he stated India ought to do at this level.

It’s okay for the Swadeshi Jagran Manch to push particular person shoppers to boycott Chinese language items, however on the state degree India should not delink from China, particularly in case of cap items or know-how, Aiyar stated.

Speaking of Sajjan Jindal’s insistence on not importing stuff from China anymore, Aiyar stated grandstanding was fantastic as far as it didn’t increase the price of operations.

So if you wish to try this form of grandstanding and it makes you are feeling good with out changing into excessive value, it’s simply fantastic, he stated.

Placing in safeguards is healthier than altogether banning Chinese language electrical tools, an space the place China provides items very low-cost; the identical goes for photo voltaic panels and battery storage, and so it isn’t potential for India to go massive on photo voltaic with out Chinese language imports, he defined.

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Aiyar underlined the should be cautious in sure areas reminiscent of defence manufacturing, however he additionally insisted that India and China are inseparable in lots of areas of commerce and economics. The purpose is to not overdo it and to at all times have a calibrated response in order that one doesn’t go excessive, he stated.

There are different international locations which have simply as a lot grievance in opposition to China as we’ve got, however they aren’t going excessive and neither ought to we, Aiyar cautioned.