Biswajit Dhar, an economics professor at Jawaharlal Nehru University, said that China has caught us by the neck and we have no way to escape.
“How soon can Indian producers challenge Chinese cheap imports, and what do they require to do that?” Biswajit Dhar, economics professor, Jawaharlal Nehru University, asks Syed Firdaus Ashraf/Rediff.com in the concluding segment of the interview.
Another fear is that if Chinese goods are banned, then consumers will have to pay more.
That is the problem. Given the demand here and they cannot be replaced, they will come via smuggling.
If you ban Chinese goods, then there will be smuggling from the North East and other borders from China.
We had Micromax and Lava phones, but they appear to have faded out.
It is because of technology and innovation.
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You cannot say you are going to set up a plant today and produce goods without doing any innovation.
There has to be an innovation system — that the Chinese have done which constantly upgrades their products and attracts consumers.
You cannot tell consumers to go back and buy old Nokia phones with keypads and not smart phones.
Consumers will tell you what to produce and if you cannot do it, you have no business to be in the market.
And that is what happened to Lava and Micromax. Indian companies should not take Indian consumers for a ride.
According to data gathered by Nikkei, India become the world’s 3rd largest automobile market after overtaking Japan.
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