Amid growing tensions with China, India has started clamping down on China on all fronts including economic. Consumer Affairs Minister Ram Vilas Paswan has said that the government is soon going to make strict rules to stop cheap imports from China. Meanwhile, retailers’ associations across the country have decided not to sell Chinese products. Sources say the government may expedite the process of stopping 371 Chinese products. Also, it can ban Chinese companies’ investments in the country’s stock market.
Discussions are on between market regulator SEBI and the Department of Economic Affairs, Ministry of Finance, to ban Chinese companies’ investments. Sources say that investment of some Chinese companies may be stopped soon. At the same time, the telecom ministry has also instructed government and private telecom companies to stay away from Chinese products. The telecom ministry has directed state-run BSNL to reduce the utility of Chinese companies. In addition, e-commerce companies have decided to stay away from China’s products.
During the war between India and China in the year 1962, the stock market fell by 16 percent annually. At the same time, gold prices had fallen by 30 percent. This is stated in the RBI report for the year ended June 1963.
Over the past few years China has increasingly invested in India’s tech startups. Last year, China invested 35 thousand crore rupees through India’s 23 agreements. Among them are big names like Paytm, Zomato, BYJU and Ola.
What will be the effect of India-China tension on business
Loss of Rs 5.7 lakh crore on China’s trade with India.
Loss of 137 lakh crores to India when trade with China ends.
Indian mobile market worth Rs 2 lakh crore, 72 percent share in China’s Indian mobile market.
45 percent of TV and other household consumer goods come from China.