CHANDNI CHOWK IS NOW CHINESE CHOWK

ANIL SHARMA 02/LL.M/2011 Chandni Chowk area is one of the most widely visited shopping areas of New Delhi, as a huge variety of products including garments, crystal items and mobiles are sold here. But now one can easily call it as Chinese chowk because one can even easily find imported items, mainly from China. The electronic items include television sets, air-conditioners, mobiles, cameras and accessories, but these are sold without any guaranty cards. We are importing many of these products from China because products are very cheaper than Indian market and because of this these products made in China are becoming more popular among the major portion of Indian masses. 1 Customer : Cheap Chinese products are kind of relief to the lower middle class in India. Companies operating in India are facing a good competition against these Chinese products as In india middle class consumer market is very big which got badly affected because of these products. Consumer are basically of two types -one who wants best features at affordable prices, and the others who go with quality and brand tag. Chinese product have benifitted the consumers of first category. There is a huge demand in India for low-cost, less durable consumer goods, from China. These goods are very popular with people who wish to buy the fake versions of their favorite brands at throwaway prices. These products are being sold at the cheapest rate and wages of poor people can afford only these products , therefore, they stick to these due to their poverty & lack of awareness about health hazards. 2 Industry : The cheap imports in every sector- toys, electronics goods, printing media etc has now reached such a proportion that we have much more 'Made in China" things than made in India things in our own shops everywhere in the country. These products have no safety standards, no quality controls and comes without any standard packaging with required information on manufacturing date etc. Cheaper price & apparently technologically advanced Chinese goods products made in China are becoming more popular among the Indian masses. This has had a very negative effect on our own manufacturing units and as a result many of them have had to shut shop & this bringing tougher times for the Indian Industry, this also certifies the concerns of many economists fear

that the local manufacturing units or the small-scale industry in India will decline. Many smallscale Indian companies have stopped manufacturing their own goods as now they import them from China. Thats why many Indian workers have lost their jobs. This shows that the objective of SSIs of providing employment to the rural youth of India is defeated completely. 3 Government: China is considered the manufacturing hub of the world. There are allegations that Chinese firms have unfair advantages over their counterparts in other parts of the world (including India) in terms of tax breaks and a devalued currency. Chinese exporters have been accused of dumping. As a matter of fact, India has initiated the highest number of anti-dumping cases against China. On the one hand, cheap imports from China could force Indian manufactures to become more productive and competitive. On the other hand, unfair and predatory trade practices by Chinese companies could prove harmful not only to Indian industry but to the countrys economy as a whole by constraining domestic job opportunities or even, destroying livelihoods Two-way trade between the two most populous countries on the planet and the fastest growing large economies is expected to reach around USD 70 billion by the end of fiscal year that ends on March 31, 2012. During a recent visit to India, Chinas President Wen Jiabao and Indias Prime Minister Manmohan Singh agreed to double bilateral trade to USD 100 billion by 2015. The trade deficit has been widening consistently and has reached USD 20 billion in Chinas favor causing concern among Indians. India accounts for just above one per cent of Chinas total exports but exports from India to China are a relatively negligible proportion of total imports by China. This situation making big hole in Indian govts pocket. To this govts vision, trade policies, taxation, banking, beaurocratic setup and infrastructure inadequacy are primarily responsible to a large extent . So in brief we can say that if situation like this let be continued then consumer will smile for few months , industry will cry for years and Govt will repent for decades.