India & China are two emerging economies is the world market, they have made a huge impact in trade within and outside ones own country. But China has reached the masses in India with their cheap imports, Direct and indirect, the direct one pertains to the goods coming through proper channels and in a legal way and finding its way into the Indian shops. As Indian market is price-oriented, Indian companies & Manufacturers feel threatened by their Chinese counterpart.
Advantages and disadvantages of allowing Chinese products into India:
With better and more choices of products for consumers, increase in competition in domestic market leads to competitive prices which is good for consumers, & it also leads to economy as a whole and also the businesses involved. There is always an opportunity to sell more, make more profits, increase the market share, remove seasonality fluctuations of demand and supply, increase in productivity, and of course a business or even a country learns a lot on the product development technologies and strategies from doing business with other countries or regions.
Certain industries have also benefited by Chinese imports:
A large number of companies from China are offering fibre optic cable TV equipment at low prices, satellite TV receiver, etc, making it attractive for small cable operators to upgrade their networks. The products, which range from digital satellite receivers to amplifiers and modulators, are available at almost half the market prices in India. This enables small and medium sized cable TV operators to upgrade from the existing RF (radio frequency) to a fibre optic backbone. With boom of DTH services in India, the providers of such services are making huge profit by importing cheaper equipment, with minimal installation & equipment charge it’s a sure advantage for them as well as the customer.
But, though Chinese products are comparatively cheaper compared to Indian products, they are also short lasting...
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