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#BoycottChina–how much survival is it in Indian Economic Reality?Let’s Know.

The #BoycottChina initiative started with the uninstall of Chinese apps and has spread to products, primarily smartphones. As a country, it’s always desirable to be self-sufficient and encourage local brands in the hope to boost the plummeting economy. ‘How valid’ is the initiative is best decided by individuals, but ‘how practical’ is it?

The Indian smartphone market is dominated by the China based OEMs for the past half a decade likes of Xiaomi, Vivo, Oppo, Realme, OnePlus, Oppo , Vivo and others. Outside of these Chinese players, Samsung, Apple, Nokia, Asus, and LG who are finding it tough to sail in a price-sensitive market like India.

The #BoycottChina initiative started with the uninstall of Chinese apps and has spread to products, primarily smartphones. As a country, it’s always desirable to be self-sufficient and encourage local brands in the hope to boost the plummeting economy. ‘How valid’ is the initiative is best decided by individuals, but ‘how practical’ is it? Let’s discuss this.

The Indian smartphone market is dominated by the Chinese-headquartered OEMs for the past half a decade or so. This primarily includes the likes of Xiaomi, Vivo, Oppo, Realme, OnePlus, and others. While the likes of Oppo and Vivo have managed to crack the offline retail market with aggressive investments and distribution, others like Xiaomi and Realme have done it by providing quality hardware at aggressive prices.

Outside of these Chinese players, we have the likes of Samsung, Apple, Nokia, Asus, and LG who are finding it tough to sail in a price-sensitive market like India. If one wants to #BoycottChinesePhones, what option do they really have?

Even if you consider “non-Chinese” “India-made” smartphones, most of the components are still being imported from China. That’s because the Chinese government has worked for decades to encourage and build the whole design and manufacturing ecosystem. This is true for electronics, automobiles, and a wide array of categories. The harsh truth is the rest of the world is still not anywhere close to China.

The government recently announced that India is now the second biggest manufacturer of smartphones in the world. While that’s an impressive achievement, just consider who’s contributing to the ‘Make in India’ initiative. Most of the top China-based brands have set up huge factories in India to make (assemble) smartphones. From Xiaomi to Oppo (Realme/OnePlus) to Vivo, a lot of these brands have invested heavily to set up plans and manufacture phones in India. The presence of Chinese brands in India therefore actually strengthens the Indian economy, by not only providing employment but also showcasing India as a manufacturing destination. It may sound contradictory but there it is.

boycott products from China-based companies who manufacture their products in India by employing lakhs of Indians in their factories? Or purchase phones from non-Chinese companies who manufacture in China or source components from China? such initiatives can have little effect if they do not flow from the Government and its related institutions. A hashtag cannot provide infrastructure or encourage local manufacturing. It can certainly make a hash of economics though!

Himanshu Johari
the authorHimanshu Johari