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FDI: Cheap Chinese imports can be good for us.


Date: 24-09-2012
Subject: FDI: Cheap Chinese imports can be good for us

Across Asia, including China, foreign retailers have proved a blessing, providing consumers with cheaper wares, and upgrading the technology of local producers to make them globally competitive . Only in India do opposition parties want to protect the aam bania against the aam admi.

The worst argument against foreign retailers is that they will flood India with cheap Chinese goods, squeezing domestic producers and causing mass unemployment. The existing Wal-Mart-Bharti retail chain imports only 3% of its goods, sourcing 97% indigenously. Import duties , countervailing duties and shipping costs make imports uneconomic save for a fraction of supermarket goods, such as plastic toys. Indian shopkeepers can already import Chinese items freely. Yet they import only a small fraction of their wares, such as plastic toys. This is not because they are great patriots, boycotting Chinese goods. They are profit-seekers , and don't find enough profit in most Chinese goods.

Source : economictimes.indiatimes.com


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