ECONOMY PART -1

ECONOMY PART-1

WRITTEN BY : M.SAIRAVINDRA

1.WHAT HAPPENED IF INDIA WILL BAN CHINA?

Every year an average business deal with india and china are more than 7lakhs crore and In that 7 lakhs crore india exported to china an average 1.5 lakhs crore and imported from china an average 5.5 lakhs crore . 

This result every indian seen and thought that if india will ban china than china will weak in economy and also decrease in GDP and they will loss heavy amount of money but originally what happened and who will loss if india will ban china?

We know that china was a developed country in the world and also no.1 manfacture company in the world. In recent survey we will see that china was the no.1 super power country in the world.

We will see the latest statistics of top man super power countries in the world in below.

China:28.4%,usa:16.6%,japan:7.2%,Germany:5.8%,southkorea:3.3%,india:3.0%Italy:2.3% this is only 2018 reports. 

Now,in recent 2019-2020 survey china increase it into 28.4% to 30% & india decrease into 3.0% to 2.8%.

So,in the above report to we know that how world depend on china.china exported 30% of goods to the whole world and now we seen that india only exported 2.8% to the whole world.

In this 30% products china  exported only 3% of its 30% . now, we thought about that if we ban china than china loss only 3% than also they will be no.1 and they migrate to other countries to recover their loss.

EXAMPLE: The best example of how world depend on china is that apple we all know this brand but this apple company many components manufactured in china.

China imported from india only 0.9% only so its nothing to china and also india because india can migrate to other countries in the sameway china also migrate other countries.

In the above statistics we seen that india exported to whole world only 3% and in that 3% india exported to china only 0.9% out of 3% so nothing losss to india we will also export to other countries.   

In the above statistics we analyse that , the total  whole  world percentage to know that india imported to china  16% only.

If we ban china than we will imported that 16% to other countries and if we imported from other countries than we will face many problems.

Problem no.1: india will not find many gadgets like mobiles,ac,fridge,etc because its all manufactured from china.

Problem no.2: if we imported from other countries than it will more cost than china .

Example:an avg indian people use mobiles  like oppo,vivo,realmee,redmi,one+,coolpad etc. it is the best example in my opinion because most of the infians use this products because its cheaper to other countries produsts that why mi,realmee are no.1 company in india.

One doubt if we manfacture that product in india than yes, it will possible also impossible because if we started manfacture than first built  factories next collect rawmaterial next built technology and finally investment and it will takes some time means some factories built to take 1year and some factories to built to take 5years,10 years .

Ok if it will happen than also one problem that is the product cost cheaper than china products and some items we can’t built because simply we take one example : we known that one phone have different components like processor,display,battery and many more present and these all are built by different countries some example like: processor built by intel,qualcom,amd these all are American companies they got full patentrights.

Display  by south korea companies like lg,Samsung. Battery  by japan companies like sony,Panasonic.

These all are got patent rights but one secret thing is that above all company components manfatured in china. Only company belongs to different countries and many countries built like this because:

1.china had heavy labours.

2.all type of permission granted in china.

3.investment.

4.they provide lots of land to other countries to built their companies.

#.why other countries can’t to do manufature in their own country and why they depends to china?

The main thing is that china’s population and china was developed country and also people can buy more products so other countries choose china.

#: why other countries not intrested to manifactured in india?

In india population is more but land problems,investment problems, permissions easily not granted many problems suffers like political pressure .

Example : if bugati built in india than it will not success because in india only some percentage of people can brought that cars others are no capacity to brought.

Final verdict: how india will dominate china in future?

1.our govt invest more money for research.

2.allow other countries to built factories comfortably means if india had a sim company if any forien company competite to india than we will arrange some policies which will comfort both Indian and foreign companies.

3.India and china trade defficet was 56billion dollars that slowly try to reduce and export more products to china.

4.Provide more research facilities and investment.

#These will happened than we will not depend on china.

                                                                                                        WRITTEN BY:M.SAIRAVINDRA

                                     Part 2 of economy -2 on next sunday