India's crazy deficit, when it will explode?

[Viet]

India's biggest purchases are oil, gold and defense products plus a big and worrying trade deficit with China.

Oil, Gold and China form the major cause of our trade deficit.

India can try to reduce imports from China by either buying from other cheap sources such as Vietnam or exporting more to China. You should ask China to further open its domestic market for Indian goods.

 

[illusion8]

India can try to reduce imports from China by either buying from other cheap sources such as Vietnam or exporting more to China. You should ask China to further open its domestic market for Indian goods.

Both countries are worried and probably attempting to do it as well but with very less success, the reason is China manufactures everything so it's very limited things that one can export back to them. They do try to offset it with investing in India, This trade deficit if it continues will result in India putting in place trade restrictions - which they presently don't want to. The reason for that is China is actually catering to a mass of people who would have been deprived of the products otherwise.

 

[Cheetah786]

India can try to reduce imports from China by either buying from other cheap sources such as Vietnam or exporting more to China. You should ask China to further open its domestic market for Indian goods.

when you buy from Chinese or any other manufacturer you are given a choice of the quality and material its up to the buyers to decide.

 

[Ayush]

it will never explode.

it will never explode.

 

[INDIAISM]

Only this can be the solution.

http://www.defence.pk/forums/indian...-western-tech-firms-sell-here-build-here.html

And impose high taxes on cheap Chinese products, so they won't be cheap anymore.

Not only that Indian Govt should impose high excise duties on the companies who are using or importing machineries from China and subsidies should be given to the companies who are using Indian machines and Indian raw material....

Secondly no companies should be allowed to deduct depriciation on imported machineries....

 

[Viet]

Both countries are worried and probably attempting to do it as well but with very less success, the reason is China manufactures everything so it's very limited things that one can export back to them. They do try to offset it with investing in India, This trade deficit if it continues will result in India putting in place trade restrictions - which they presently don't want to. The reason for that is China is actually catering to a mass of people who would have been deprived of the products otherwise.

We face similar problem with China: huge trade deficit. So what we do:

# we copy China and produce goods with cheaper prices
# we have started a campain "buy Vietnamese goods!", aiming consumers should buy 80% from domestic source within 5 years
# we have urged China to further open its market , especially for Vietnamese farm products such as rice, fish, etc...

Just to name a few. Although we still suffer trade deficit with China, last year we reached a trade balance at the first time since 20 years.

 

[illusion8]

Not only that Indian Govt should impose high excise duties on the companies who are using or importing machineries from China and subsidies should be given to the companies who are using Indian machines and Indian raw material....

Secondly no companies should be allowed to deduct depriciation on imported machineries....

In the course of time this is what will happen - now the option is whether to import machinery from destination A, destination B or from destination C, and destination C is winning because of the cost factor.

We face similar problem with China: huge trade deficit. So what we do:

# we copy China and produce goods with cheaper prices
# we have started a campain "buy Vietnamese goods!", aiming consumers should buy 80% from domestic source within 5 years
# we have urged China to further open its market , especially for Vietnamese farm products such as rice, fish, etc...

Just to name a few. Although we still suffer trade deficit with China, last year we reached a trade balance at the first time since 20 years.

That's nice - good going for Vietnam.


Presently this trade deficit is not of major concern to us - it can be easily reversed as and when required if it becomes a problem. We are at cross roads and are definitely eyeing China's big foreign investment pie and trying to stabilize relations so any radical steps have been put on the back burner for now.

 

[Cheetah786]

Not only that Indian Govt should impose high excise duties on the companies who are using or importing machineries from China and subsidies should be given to the companies who are using Indian machines and Indian raw material....

Secondly no companies should be allowed to deduct depreciation on imported machinery....

If you were to impose high taxes on Chinese companies or goods that will send a wrong message to the world not to mention Chinese retaliation plus not allowing business to write off depreciation means their will be no more investment in India economy by business.

 

[Viet]

when you buy from Chinese or any other manufacturer you are given a choice of the quality and material its up to the buyers to decide.

You are right. Basically it is up to an individual to decide whether to buy a dedicated good. If India thinks the current trade deficit is worrisome, then some drastic steps should be implemented by the government.

 

[illusion8]

If you were to impose high taxes on Chinese companies or goods that will send a wrong message to the world not to mention Chinese retaliation plus not allowing business to write off depreciation means their will be no more investment in India economy by business.

It can be done if needed without the international community bothering about it, Anti dumping, anti pollution, Anti Arsenic, Anti contamination, stricter import restrictions, refuse subsidies to importing companies etc etc.
Though China can definitely build a case against any or all of them - the whole process will take ages specially in India to reverse and by that time we would have killed most of the competitiveness and the products market.

 

[Cheetah786]

It can be done if needed without the international community bothering about it, Anti dumping, anti pollution, Anti Arsenic, Anti contamination, stricter import restrictions, refuse subsidies to importing companies etc etc.
Though China can definitely build a case against any or all of them - the whole process will take ages specially in India to reverse and by that time we would have killed most of the competitiveness and the products market.

What you said will work great in Bollywood Movies fortunately in real world the case will be herd in WTO and other world trading bodies and not in India.

India cannot go after any other country for Anti dumping, anti pollution, Anti Arsenic, Anti contamination, stricter import restrictions since India her self is involved in all these more so then Chinese.

One of My Good friend is involved in manufacturing electronics he said ''People only wants to pay $30 for a DVD player but they also wanna get paid $30/hr to work at the the plant''.point is you cant have it both ways.

 

[chinapakistan]

What you said will work great in Bollywood Movies fortunately in real world the case will be herd in WTO and other world trading bodies and not in India.

India cannot go after any other country for Anti dumping, anti pollution, Anti Arsenic, Anti contamination, stricter import restrictions since India her self is involved in all these more so then Chinese.

One of My Good friend is involved in manufacturing electronics he said ''People only wants to pay $30 for a DVD player but they also wanna get paid $30/hr to work at the the plant''.point is you cant have it both ways.

My company uses several indian software companies as the offshore for coding.
Every time I pushed our schedule and asked them if it is possible to finish the PJ on time, the answer was always Yes, but finally I found I can ever never get it on time. I just cant understand why they do not say NO if it is not possible, now I know it is becasuse of Bollywood Movies...

 

[illusion8]

What you said will work great in Bollywood Movies fortunately in real world the case will be herd in WTO and other world trading bodies and not in India.

I am not a great fan of bollywood movies but seems as if you are - kindly specify which movie script you seem to be refering here.

India cannot go after any other country for Anti dumping, anti pollution, Anti Arsenic, Anti contamination, stricter import restrictions since India her self is involved in all these more so then Chinese.

Kindly prove this passage with facts...and even if it is true..why do you think the same cannot be applied against China? - there are a number of cases where it's happened...

Tainted Chinese Imports Common
Tainted Products from China | topic | Epoch Times
Is China trying to poison Americans and their pets?
From Milk to Peas, a Chinese Food-Safety Mess - NYTimes.com
Consumer Safety and China - The New York Times
Milk Contaminated With Detergent Recalled in China
U.S. Sets Anti-Dumping Duties on China Solar Imports - Bloomberg

One of My Good friend is involved in manufacturing electronics he said ''People only wants to pay $30 for a DVD player but they also wanna get paid $30/hr to work at the the plant''.point is you cant have it both ways.

I agree with it, one cannot compete with China on it and our people highly benefit from cheaper goods from China.

 

[Maleesh]

 

[KRAIT]

Well we have to just wait for 2014. After that tables will turn and Economic boom will happen.