Trikaal wrote:I feel like you are confusing two separate issues here. Trade imbalance amd deficit with china is certainly a problem which should be addressed. However, making sweeping statements like 'electronics bill needs to be reduced' are wrong imo
We can all be glad these are only your opinions and not what the government is doing
Trikaal wrote:First off, India earns a healthy tarrif on import of these items. That money is going in GOI's pocket and helping build infrastructure and employing people.
Do you think the Chinese are paying the tariffs, when India (or US) applies them on Chinese imports ??? That tariff is a tax on YOU - it is YOU whom the government is targeting here. It's *Indian people themselves* who are paying them. When tariffs are applied, either the importer raises the per unit MSRP, or lowers sales volume. The only impact on the Chinese is that by forcing up the prices or forcing down volume, it gives the tariff applying entity a means to lower imports from that country.
You seem to be under the fantastic impression that when India applies tariffs, the Chinese grudgingly reach into their purse and hand us extra free money that goes into 'infrastructure and employ people'. No, it's YOUR pocket that's being raided, and you are being taxed more, to get you to stop the addiction to that imported item.
Trikaal wrote:So if people are still importing 5 billion worth of electronics per month that means that this demand isn't artificial. Artificial demand, like in case of pakistan where demand was because of cheap imported electronics(due to their artificially low currency) is bad. Suppressing genuine consumer demand is detrimental for our economy.
That's not 'consumer demand' . Demand is backed by purchasing power and doesn't drain the economy or capital. What you're calling 'demand' here is just wants. If you ran a strawpoll of rural households asking "do you all want cellphones, LCD TVs, cars, almirah of sarees, washing machine, fridge, microwave" you'll get overwhelming YES, proving the existence of incredible "demand" for everything. Except that practically no one can afford all that if offered for purchase. On a more destructive note, the Chinese demonstrated enormous demand for opium at one time, and the Americans do for opoids now.
That's what this "demand" is - the country is bankrupting itself, sending its currency down 15%, running a trade deficit larger than all but a handful of countries, and that deficit is paid for by the Indian worker who has to create enough economic value for India to buy the increasingly expensive dollars to pay the difference between exports and imports. And the tariffs applied ? YOU the consumer are paying that too.
Trikaal wrote:Second, this is not a simple numbers game. The 5 billion dollar electronics have a multiplier effect which is hard to express in
numbers. More computers means more indians developing and exporting software services. More mobiles mean more business efficiency.
You talk about 'multiplier effect' and simultaneously say it's not a numbers game. What do you think gets written on both sides of a multiply sign ?
One of the most stresses industries with highest NPA risk - is the telecom industry, who can't sustain the 'demand' on the back of the ridiculously small ARPUs they've to live with, and that's because people can't afford to pay for the services they demand, because they don't have the purchasing power and wage levels to support it.
Trikaal wrote:Thirdly, yes, we definitely do need to attract manufacturing into india. And that's happening already. Companies like oppo, xiaomi, and samsung have established local plants. Sub-component manufacturing will also come over time. The need is to improve policy and offer incentives rather than just blanket ban companies.
Once again, you're trolling here by placing words in people's mouths like 'blanket ban'. If you're referring to Flipkart or such, they're not a manufacturer of anything, just an online portal. "We are going to make it too expensive for you to import your goods here, and we'll make it cheaper for you if you set up manufacturing facilities here" is a perfectly acceptable economy policy.
Trikaal wrote:Lastly, importing electronics like 5g tech allows indian companies to maintain technological competency with global rivals.
There's no technological competency in being an importer of finished goods comprising IP developed elsewhere.
Trikaal wrote:Just my two cents.
I understand your heart is in the right place, but please
, just be a lurker of the thread, at least until you're sufficiently familiar. This thread doesn't lend itself to disruption in this manner, and I don't want to have to warn or ban you for being disruptive, and would rather you just lurked. However, if you continue to be disruptive, that will be the next step.