Chinese products are expected to suffer significant losses in India ahead of Diwali and other festivals. The Confederation of All Indian Traders (CAIT) said it was looking at losses estimated at ??50,000 crore from Chinese exporters this year due to Indian boycott of Chinese products in domestic markets.
For the Indians to ban crackers and other cheap Chinese festive goods this season directly equates to more profits for local industries in India. In a statement released on Friday, the traders’ body said India’s domestic sales are expected to get a big boost this Diwali given the increased number of customers in markets across the country ahead of the end of year celebrations. The Indian economy could see an influx of ??2 lakh crore through consumer spending during Diwali sales.
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“As in the previous year, this year too, CAIT called for a ‘boycott of Chinese products’ and it is certain that China will suffer a trade loss of about ??50,000 crore in terms of stopping the importation of Chinese goods by Indian traders, ”CAIT said in a statement Friday.
Another important change, seen recently, is that consumers in major cities across the country do not seem to be really interested in buying Chinese products, which should instead increase demand for Indian products. CAIT General Secretary Praveen Khandelwal said that a recent survey by the agency’s research arm in 20 “distribution towns” showed that so far no orders for Diwali products, firecrackers or other items had been passed from 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.
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For the background, during the five months of the holiday season from Rakhi to New Year’s Day each year, Indian traders and exporters typically import goods worth around ??70,000 Chinese crores. However, during the Rakhi festival this time, the Dragon reportedly suffered losses to the tune of ??5,000 crore and then again to the tune of ??500 crores at Ganush Chathurthi.
If the same trend continues for Diwali, it would make it clear that not only are Indian traders boycotting Chinese goods, but consumers, too, are losing the will to buy goods made in China.