An Associated Chamber of Commerce and Industry of India (ASSOCHAM) survey has found that the prevailing anti-China sentiment in the country can result in 40-45 per cent decline in the sale of Chinese products this Diwali when compared to their sale last year.
A quick survey by ASSOCHAM-Social Development Foundation (ASDF) has said that be it decorative items like lights, gift items, lamps, Ganesha and Laxmi idols, rangolis, wall hangings crackers or even the electronic products like mobile phones, the decline is visible across all the sectors.
The ASSOCHAM survey that was conducted across multiple cities, i.e., Ahmedabad, Bangalore, Bhopal, Chennai, Dehradun, Delhi, Hyderabad, Jaipur, Lucknow and Mumbai, found that people were preferring Indian goods over Chinese products and were demanding Indian lights and earthen diyas and shopkeepers were stacking products this festive season accordingly.
According to the ASSOCHAM release, the share of Chinese products during Diwali festivities last year was estimated to be 30 per cent or around Rs 6500 crore and Rs 4500 crore of it came from only Diwali related items like toys, fancy lights, gift items, plastic ware, decorative goods etc.
The ASSOCHAM paper also found that the demand of electronic items like LCDs, mobile phones and others items made in China has also declined by 15-20%.
India-China relations are going through a rough patch especially after the 73-day long Doklam standoff, the border row between the countries in the Doklam region of the Sikkim sector that saw an abrupt end in the last week of August. Though India claims a status quo has been maintained in the region ever since then, there are conflicting reports emerging in the media that China is again scaling up its operations in the disputed border territory.
Also, some reports in August had claimed that the Doklam standoff had adversely affected business of Oppo and Vivo in India, two major mobile manufactures from China. A report in the Economic Times had said that 400 expat Chinese workers were being sent back after the sale of smartphones of these companies fell sharply in July and August months owing to the ‘anti-Beijing sentiment’.