when Indian manufacturers were being changed 50% more when they export to china,why cant the Indian gov do the same to chinese suppliers?
Yeah u charge thm back but halting the product is sumthing different.
Isnt it unfair tht if chinese are giving ur companies sum challenge thn stop those chinese companies from selling their products.
This is alike Tit for Tat game.
And tits are of many types.Like subsidising the local companies,providing tax exemptions,levies,.......
But you know what happens when the above occurs? Economy grows but gov looses revenues.And India being a developing country and is having a huge tax deficit ,providing tax ememptions is not the solution of the day.
But banning a company that is being unfair in the trade game is the best shot at will.Domestic cos will create more employment and can increase their production(forget about exports,lets take care of current day domestic consumption which is literally in billions of USD).This way it is a win-win for both gov and local manufacturer.Gov gets its revenue and the company can make some decent profits while providing some extra employment.
And its completely ridiculous that chinese are putting competition to Indian elites,its the other way around and you see the clear picture by the way they were offered goodies by their government in all possible means to cope up with thier competitors.
But one has to understand the logical move behind the ban on a particular company.It has as many side effects which ofcourse are long term.This trashes the company profile in the market.Its current customers once moved to other vendor will find a change in quality and thereby sticking to that vendor( though a 15% up price).And this will take lots of efforts and money to make a comeback into the market.and the virtual uncertainity of this X company doing business in the market will make its long term customers think about it.
though off-topic,but its totally related in a sense to my previous statement.One of my school mate who is now in a topmost position in The largets private mobile operator in India is instrumental in choosing a vendor for his companies wireless equipment.After the recent hallah-bollah of ZTE and huwaei ,though his company used to have huwaei on their vendors list along with other western,they completely got rid of it after they scored as many 3G spectrum bids.3G is going to be a high end battle for marketisation in the Indian telecom sector.They dont want to take their chance by have an uncertainity coulded vendor whom they source their equipment from.They already hit a jackpot in Africa with a major aquisition and can easily throw biscuits at as many vendors who are after this company.He said,after this new aquisition his company is offered prices comparable to the ones offered by chinese makers.Now that only western ones are in the game,they are fighting each other to grab that chunk.They are lowering the prices incredibly.He is also confident that he will only source those high grade equipment for all his 3G networks.(its fair enough to conclude that the chinese makers took a great whip with just a word BAN)
this is similar to trusting a bankruptcy filed company.Taking 100% chances.Means a risky business.
(in reality we do buy a lot of chinese stuff)
