How to avoid buying Chinese products?Effects Mobile industry





how to avoid buying Chinese products
How to avoid buying Chinese products





    OVERVIEW

    One simple question arises in everyone's mind that how to avoid buying Chinese products? as these cheap products are flooded in our market.
    Due to the recent tension between Indian and Chinese soldiers on the Ladakh border, there is a call to boycott China-made products in India once again. Here in China, Chinese manufacturers dominate the mobile phone industry. Due to the massive demand for cheap budget phones, India has become a promising market. But can we reduce total dependence from Chinese goods?

    Can one be able to export "Made in India" phones fully to meet domestic demand? According to  India Today's Data Intelligence Unit (DIU) found overall this is not going to happen., then how to avoid buying Chinese products?



    How to avoid buying Chinese products


    1. As Chinese products are quite cheap quality  therefore we should avoid buying them.
    2. Please make sure to read the back logo , generally, it is written there made in china.
    3. If possible please share articles about how to avoid buying Chinese products in social media, as these products affect our daily life.
    4. The Chinese government is misusing resources and threatening many countries, therefore we should boycott Chinese products.
    5. Remember the covid-19 pandemic, you will get the answer about how to avoid buying Chinese products.
    As, there are many downfalls of Chinese products for our nation, therefore, we should educate people about how to avoid buying Chinese products.




    How Chinese products impact our mobile industry?

    The mobile phone business stats says that India has become a net exporter of this goods industry for the first time history. Till now the import of mobile phones in India was always more than its exports. In FY 2019-20, India exported 41.5 million (4.15 crore) phones and imported 5.6 million (56 lakh) phones. That is, India exported a net of 36 million (3.60 crores) units. But does it mean that the Chinese players are going to market from the Indian market in the coming days?


    how to avoid buying Chinese products
    how to avoid buying Chinese products



    Assembling hub

    Excess export of mobile data does not prove that it was manufactured here. But by scrutinizing the data, it shows that cell phones assembled here more than they made in India.

    Credit Suisse's press release note states that despite the presence of such a large number of factories, the average mobile phone manufacturing in India has been barely 10 percent.

    In 2017, our government launched a phased hosting program, under which local production of mobile accessories is encouraged. Under this, custom duty will have to be paid for importing products like charger, microphone, phone camera, etc., but will not have to pay customs duty on the parts required for the manufacture of them.

    As a result, assembling mobile phone parts in India is cheaper, while importing a fully finished mobile phone is expensive.


    Some annual stats on why we unable to avoid buying Chinese products

    The latest annual report (2018-19) of the Ministry of Electronics and Information Technology states, "Differential excise duty was raised in the budget 2015-16, making a difference of 11.5% in favor of domestic cellular mobile handset manufacturers ... It has increased cellular mobile Encouraged assembly, programming, testing, and packaging (APTP) models in handset manufacturing. "

    The ministry has postponed implementing the custom duty for "display and glass panels" till 30 September 2020, which was to phase out in 2019-20.



    Recent policy reform

    The impetus to import of mobile phone parts has another impact. Tarun Pathak, Associate Director of Counterpoint Research, said last year that the local value addition could increase by 17 percent in 2018. It would have saved us $ 2.5 billion in foreign exchange, but this has increased the import of mobile components to $ 13.5 billion because India does not manufacture many precious parts.

    Speaking to India Today, Pathak said that in such a scenario, it would be "virtually impossible" to make a 100 percent "Made in India" phone, and it would take years for policy reforms to contribute more than 50 percent to the value addition. China has received more than 60 percent value addition in almost two decades.

    Pathak said that we require More than 300 components and establish a brand of manufacturing the mobile phone. It is complicated to get them in one place because we are not dependent on China for every part. The actual value addition in India is 12 percent, and the government's phased construction program is proving helpful. We have improved many components, such as chargers, packaging, camera modules, etc. "

    Pathak said that policy reforms would be active for moving forward, but they will take time. He said, "We cannot continue to increase the customs duty. Recent performance-linked incentives and steps like reducing the corporate tax rate will invite big companies to invest and build in India. After the arrival of big players, small local manufacturers will also get a boost."

    In March this year, the government announced a $ 7 billion performance-linked stimulus plan, which would encourage manufacturers' sales and capital investment.

    Telecom Minister Ravi Shankar Prasad said, "We will give 40,995 cr rupees in the upcoming five years for mobile phone manufacturing and production, including assembling, testing, marking and packaging units."

    Through this policy, the government aims to increase the local value addition to 35-40 percent by 2025. But for this, India needs to target the market for expensive phones.

    Credit Suisse's research says that India produced 300 million mobile phone units in FY 2019, which is 20 percent of global production. However, most of these were low-priced phones. The report also said that India had produced 40 percent of low-cost phones globally. It also states that if India meets its target, it can improve its fiscal deficit by 0.7 percent of GDP.



    Conclusion

    Overall, personally, I would avoid Chinese products being an Indian and educate people about how to avoid buying Chinese products.

    Whether or not China will be able to benefit from these policies will depend on the time to come. The government has already started investigating investments coming from China, which has upset Chinese investors.

    I request all people to share this article, to educate people about how to avoid buying Chinese products and boycott them.

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