Page 246 - LECTURETTE TOPICS eBOOK

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in Indian crackers. Sulphate is dangerous but because of low prices and lack
of awareness people prefer buying Chinese crackers
• The domestic industry is badly affected by the presence of Chinese goods
market on a large scale. The international outflow of capital has increased.

• China has the largest toy market in the world and finds a huge market for its
toys in India as well. As a result, a number of Indian toy companies are
shutting down

• The export policies of China are very simple and this leads to increase in the
consumption of Chinese goods.
• The dealers get huge margins and profits from Chinese goods because of low
costs and hence prefer selling Chinese goods instead of Indian goods.
• The strategy that China has adopted is called dumping. They are using Indian
markets to dump their excess production. We get obsolete technologies from
the Chinese markets.
• In India, it is the small-scale market that gets affected the most. Many small-
scale industries have shut down because of the market dominance of Chinese
products.
• One of the serious problems is that if India completely boycotts Chinese
products, the same will be done by China and the Indian economy will lose a
good share of the market. So no such decisions in haste can be taken.

What can be done?
• Some reforms should be initiated so that the Indian products give an equal
competition to Chinese products and people start shifting their demands.
• Economies of large scale should be reaped so as to lower the cost of
production.
• Awareness should be spread among the people about the quality that Indian
products offer.

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