Even as the impacts of globalisation continue to be debated, it is generally conceded that such impacts are uneven across the economies of nation-states and also within particular countries. Some sectors gain more than others, while others decline China has become India’s leading trading partner. Two-way trade between the two most populous countries on the planet and the fastest growing large economies is expected to reach around USD 60 billion by the end of fiscal year that ends on March 31, 2011. During a recent visit to India, China’s President Wen Jiabao and India’s Prime Minister Manmohan Singh agreed to double bilateral trade to USD 100 billion by 20151. The trade deficit has been widening consistently and has reached USD 20 bn in China’s favor causing concern among Indians. India accounts for just above one per cent of China’s total exports but exports from India to China are a relatively negligible proportion of total imports by China.
Casual anecdotal evidence points towards a fairly significant level of penetration of Chinese goods into virtually every nook and corner of markets in India — from small gas lighters to advanced computers, the “Made in China” product is very visible across the length and breadth of the country. China is considered the manufacturing hub of the world. There are allegations that Chinese firms have unfair advantages over their counterparts in other parts of the world (including India) in terms of tax breaks and a devalued currency. Chinese exporters have been accused of dumping. As a matter of fact, India has initiated the highest number of anti-dumping cases against China. It has, therefore, become important to study and understand how the rapid increase of Chinese imports to India has impacted markets here. On the one hand, cheap imports from China could force Indian manufactures to become more productive and competitive.
On the other hand, unfair and predatory trade practices by Chinese companies could prove harmful not only to Indian industry but to the country’s economy as a whole by constraining domestic job opportunities or even, destroying livelihoods. Whereas cheap products attract consumers, concerns about quality and safety http://timesofindia.indiatimes.com/india/India-China-agree-to-double-trade-to-100bn-by- 2015/articleshow/7111237.cms standards remain.
For instance, there was a controversy over the imports of products and technologies used by telecommunications companies, especially by mobile phone service providers.
It is in this context that the proposed research project seeks to study the impact of Chinese imports on the Indian economy in general and on employment in particular.
