India on the backfoot in the Economic war against China

A multi-domain war is a combination of unrestricted war or war without any rules, or a ‘Hybrid war or Grey zone war’. This is a no-contact war. China is fighting this war against India 24 x 7, meaning, 365 days a year and 24 hours a day. The scope of this war is vast. This war is waged by China not on the frontier, but on various fronts simultaneously within India. These fronts include not only the Indian Army, but the Union Government, various State Governments, through some organisations within the country and Indian citizens. Besides, this war is multifaceted. In this article, we shall learn about China’s economic war against India and its intrusion into India’s economy, and the preventive measures India should adopt to fight this war.

1. China defeated India in the Economic and Trade wars during 2022

We always say that every Indian should boycott Chinese goods; but, we are found wanting in practising what we preach. Indians are always busy infighting instead of fighting China. As a result, the progress of the Nation is hampered; our progress does not pick up expected speed. On the one hand we say – ‘Do not buy Chinese items’, but according to a recent newspaper report, imports from China have increased manifold, and the gap between imports and exports is close to $100 billion (Rs 83,0000 crores). This simply means that the imports from China are increasing day-by-day. Indian traders who make huge profits by buying cheap Chinese goods are responsible for this.
The Indian industry feels that it cannot survive without China. In a nutshell, during the year 2022, China has overshadowed India in the economic and trade war. Therefore, if this war is to be won, some corrective measures need to be taken by India.

2. Strict action needs to be taken against Indians illegally trading with China

There is no harm in India importing raw materials from China; but it will be far better if we begin manufacturing these raw materials in India. For example, the raw material ‘Active Pharmaceutical Ingredient’ (API) required for the Pharma industry should be manufactured in India. Apart from this, India can reduce its dependence on China by importing such raw materials from other countries.

China is also involved in illegal trade with India. It smuggles a lot of goods through India’s borders with neighbouring countries such as Nepal, Bangladesh and Myanmar. Counterfeit currency, opium, cannabis, cannabis concentrate are also smuggled into our country.

I have spoken many times about these illegal activities of China. Chinese currency is the Yuan and its exchange rate is Rs 12 per Yuan. If India starts buying raw materials from other countries instead of from China, the Rupee will become stronger. Indian traders buy Chinese Yuan from the black market.

A cargo container arriving from China has say goods worth Rs 10 crores; but, it is billed at only Rs 1 crore. This effectively means that goods worth Rs 9 crores are brought into India without paying any duty. As a result, the price of Chinese goods is very low and the Indian traders make huge profits. Now there is news that India’s investigation agency is keeping an eye on such trade. We hope that traders involved in illegal activity will be arrested.

3. Efforts that India should make to win the Trade war against China

Indian businessmen are obsessed with getting rich quick. To fulfil their obsession they import anything from China to sell in India. India should reduce imports from China. Also, traders who engage in illegal trade with China should be severely punished. India will have to seal its borders with Nepal and Bangladesh. Besides, the large-scale smuggling from the sea route will also have to be stopped. To do all this, an indomitable will for the welfare of the Nation has to be created in Indians. Many foreign companies do not accept defective Chinese goods. India should also ban them.

To win the economic and trade war against China, India will have to manufacture everything in India. This will mean giving a big boost to the small and medium enterprises in India. Chinese goods are produced in homes by the Chinese women. Hence, they are cheap. Chinese workers are also highly skilled. India will also have to develop such skills and a network of small scale industries. This will help India win the war with China.

4. Need to become more efficient than the Chinese

China is using various political parties, organisations, institutions and criminals on a large scale to destabilise the Indian economy. These people are involved in demonstrations, calling for strikes, blocking roads, burning public property, vandalising vehicles on roads, etc. Some political parties and organisations feel that it is their right to call for a total shut down (Bandh) of a region. Political parties can have differences on various issues; but these can be brought to the fore through other mediums. Calling for a total shut down is definitely not the way to go. Rather than stalling India’s economy, they can protest by accelerating it.

The media has a very important role to play in this regard. They should promote good work rather than violence and vandalism. On many occasions they give a lot of publicity to violence. Most importantly, to win the war against China, the Indians need to become more efficient than the Chinese. Violence and shutdowns are not tolerated in China. They only work hard. This has made China the second largest economic power in the world. Therefore, Indians must become world class or more efficient than the Chinese in every field. This requires a strong National will.

– (Retd) Brigadier Hemant Mahajan, Pune.

We always say that every Indian should boycott Chinese goods; but, we are found wanting in practising what we preach !