India ‘Aatmanirbhar’ this Diwali. Chinese exports set to suffer 50k crore in losses
CAIT secretary general Praveen Khandelwal said a recent survey conducted by the body's research arm in 20 ‘distribution cities’ showed that so far no orders for Diwali goods, firecrackers, or other items have been placed with Chinese exporters by Indian traders or importers.
Chinese goods are set to suffer major losses in India ahead of Diwali and other festivals. The Confederation of All India Traders (CAIT) has said that they are looking at estimated losses to the tune of ₹50,000 crore on part of Chinese exporters this year due to Indians boycotting products from China in the domestic markets.
That Indians are banning crackers and other cheap festive products from China this season directly equates to more profits for India's homegrown industries. In a statement issued on Friday, the traders' body said that India's domestic sales are expected to receive a major boost this Diwali in view of a surge in the number of customers in markets across the country ahead of the festive season. The Indian economy may see an inflow to the tune of ₹2 lakh crore through consumer spending during Diwali sales.
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"Like previous year, this year too CAIT has given a call of 'boycott Chinese goods' and it is certain that China is going to suffer a business loss of about ₹50,000 crore in terms of stoppage of import of Chinese goods by Indian traders," CAIT stated in the statement on Friday.
Another important change, observed recently, is that consumers across major cities in the country do not really seem interested in buying Chinese products, which is likely to increase the demand for Indian goods instead. CAIT secretary general Praveen Khandelwal said a recent survey conducted by the body's research arm in 20 ‘distribution cities’ showed that so far no orders for Diwali goods, firecrackers, or other items have been placed with Chinese exporters by Indian traders or importers.
These 20 cities are – New Delhi, Ahmedabad, Mumbai, Nagpur Jaipur, Lucknow, Chandigarh, Raipur, Bhubaneswar, Kolkata, Ranchi, Guwahati, Patna, Chennai, Bengaluru, Hyderabad, Madurai, Pondicherry, Bhopal, and Jammu.
For context, during the five-month festive season from Rakhi to New Year's Day every year, Indian traders and exporters usually import goods worth about ₹70,000 crore from China. However, during the Rakhi festival this time, the Dragon was reported to have suffered losses to the tune of ₹5,000 crore and then again to the tune of ₹500 crores in Ganush Chathurthi.
If the same trend continues for Diwali, it would clearly indicate that not only are Indian traders boycotting Chinese goods, but consumers, too, are losing the will to buy products made in China.