‘Centre needs to review its trade policy with China’

NEWDELHI: SWADESHI JAGRAN MANCH, AN RSS AFFILIATE, HAS BEEN CARRYING OUT A DRIVE AGAINST CHINESE GOODS, AND HAS ALSO URGED THE CENTRE TO BAN THE IMPORT OF CONSUMER PRODUCTS FROM THE COUNTRY

The union government will have to revisit its trade policy with China to create employment avenues and bring the economy on track, rather than depend on “cosmetic treatments” such as the recent recapitalisation plan for banks, the Swadeshi Jagran Manch (SJM), an RSS affiliate has said.

Ahead of its Sunday rally, the SJM has come up with a wishlist that includes the demand for special packages for the small and medium sectors, anti-dumping duty on solar products from Beijing and opposing the proposed agreement on e-commerce at the Regional Comprehensive Economic Partnership (RCEP) being negotiated between India and 15 countries.

The SJM has been carrying out a year-long campaign to boycott Chinese goods, and has petitioned the government to ban the import of consumer products from the country. It has cited China’s continued support to the One Belt, One Road project that runs through Pakistan Occupied Kashmir, its bid to block India’s entry into the Nuclear Suppliers Group and the recent Doklam stand-off as reasons to cut trade ties with Beijing. It has also said that Chinese brands should not be encouraged to sponsor sporting events in the country.

In an interview to HT on Friday, the national organiser of SJM, Kashmiri Lal said, by allowing Chinese goods unrestricted into Indian markets, the government is setting the stage for a total collapse of its own manufacturing sectors. “Cheap consumer goods have flooded the market, dealing a blow to the manufacturing sectors that were the largest employment giving sectors. Now, we are encouraging FDI from China, which is the most dangerous,” he said. Though IndiaChina trade has increased over the years, the deficit expanded to $44.51 billion in the first seven months of 2017, as imports from China continue to increase, shows official data released in Beijing earlier this month.

Lal, said the government will need a firewall against e-commerce at RCEP, or it will negatively impact India’s small retailers. “Big e-trading portals are not limited to supply chain services alone, they are driving the demand and even getting into production. The government needs to announce special packages for the MSME and agriculture sectors. In China, agriculture is a profession, but in India it is a way of life,” he said.

He also said the government will have to address the concerns of the small manufacturing units about the anomalies in the GST roll out. Lal said based on feedback from market association there has been “between 30 to 70% decline in the imports of goods such as crackers, lights, locks, bicycles and blankets”. He did not however, provide the exact numbers to back his claims.