Boycott China Clamour Leaves Delhi Traders Mulling Options

Atmanirbhar Bharat, the call to reduce dependence on imports, may have enthused many, especially in the wake of the hiccup in India-China relations, but traders and businessmen have begun asking whether it is entirely plausible to avoid the influx of materials and products from India’s ambitious neighbour. Many Delhiites caught in this nationalistic dilemma point out that over 5,000 items, from toys and lighting to fabrics and kitchenware to cosmetics and furniture, come to the city from China.

TOI visited commercial hubs in Delhi where the Chinese presence has always been conspicuous and asked traders how the self-reliance appeal has influenced their business plans.

Toy Importers in Sadar

Before the Covid-19 lockdown, round 300 cargo containers reached Sadar Bazar every month with Chinese toys, lights, cloth, watches and sewing machines. Those who once had shops in the Hardware & Agricultural Tools Market in Sadar Bazar shifted, in 2005, to the more lucrative business in toys imported from China as the demand for agricultural and iron products decreased.

After 15 years, these traders are again required to make some crucial decisions. “In 2005, there were six shops in Sadar Bazar selling imported toys. Today these are more than 2,000,” disclosed Sumit Matta, a toy seller. “We have logged losses due to the Covid pandemic, and now the rising din about boycotting Chinese products seems set to break our back.” Matta imported around three containers of Chinese goods every month till February, but since has barely placed orders for three.

But replacing Chinese imports will not be easy, noted Rajendra Sharma, general secretary of Federation of Sadar Bazar Traders Association. “There are some toy manufacturing units in Mumbai, but their product range is limited. Moreover, their capacity for mass production, cost of production, variety and technology are not advanced,” Sharma said. “I don’t think it is as easy to boycott Chinese goods as it sounds. As it is, each trader in Sadar Bazar has stocks worth over Rs 1 crore. Where will these go?”

Bhagirath Place

Traders at the market urged the Centre to clear its stand and at least publish a list of products that cannot be imported. “We also want uniform implementation of policy for everyone, or in other words, not just for small importers but also multinational companies getting their products manufactured in China and importing them to India,” said Rakesh Yadav, president of the market association.

Electronics in Gaffar

Gaffar Market in Karol Bagh is a popular hub for China-made mobile phones and accessories like power banks, headphones, data cables, pen drives and memory cards. There are over 5,000 shops selling phones and gadgets and 25,000 people work here. They make business into 20-25 crores every day Shopkeepers admit that 80-95% of mobile accessories sold there are imported from China and sell well because they are affordable, trendy and well-designed.

“We aren’t against the atmanirbhar movement, but if we boycott Chinese products, where can we source alternatives?” asked shopowner Bhairav Rajpurohit. “Mobile phones are assembled in India, but the raw material comes from China. Before boycotting Chinese products, we have to prepare ourselves in terms of technology, machinery and raw material sources.”

Karol Bagh Shoes

Karol Bagh’s Wholesale Footwear Association relies on China for only 20-25% of its wares, but traders feel these imports still offer better quality at lower costs than local products.

Dharampal Arora, president of the trade body, observed, “Branded shoes cost a minimum of Rs 2,000, but buyers have the option of buying shoes starting at Rs 700 that are either manufactured in India or in China. Of the latter, of course, people opt for the Chinese shoes because of their designs and quality.”

Arora said the shops had stopped orders, but will have to sell the remaining inventory.

Sarojini Nagar

“You name it and we will show it you,” declares Ashok Randhawa, president of the Mini Market Traders’ Association in Sarojini Nagar. Indeed, that market there could well adopt that line as its tagline. Though there is no guarantee about the available products, mostly from China, they are popular because of their affordability. Buyers can take home a lighter at Rs 10, a packet of needles of Rs 10, lipstick for Rs 20 apiece, mascara at Rs 60, and among other low-cost products, shoes, curtains, bedsheets, apparel, and decorative items.

Kirti Nagar Furniture

The wholesale market at Kirti Nagar offer a one-stop solution for all furniture requirements. A decade ago, China made a slow but steady inroad into the market, providing furniture suitable for working couples and the younger generation. Today, it has a 30-40% share in the market. “The best part about Chinese furniture is their price, design and colours, and the capacity to fit all spaces,” said a trader.

Furniture importer Manish Khandelwal also pointed out that Indian furniture cannot usually be assembled or disassembled quickly, making it a problem when shifting house. “The products from China are available for a fourth of the Indian cost, and at that price a buyer need not worry about keeping them for a lifetime.”

Building and Construction in Tilak Nagar, Jagatpuri and Chawri Bazar

The building and construction business, concentrated around Tilak Nagar, Jagatpuri and Chawri Bazar, importing goods as small as screws, taps, bath fittings, locks, hinges, water pumps, fire doors and plastic pipes from China. “Directly and indirectly, 70-80% of what we sell in these markets are Chinese imports,” disclosed a member of the Builders’ Association of India. “Even Indian companies dealing with similar products get them manufactured in China to cut the cost of production and for bulk supply.”

He also said that the traders supported the government decision to reduce imports, but advance notice, either in the form of increased import duty or imposition of restrictions on specific products, should be given to help businessmen placing infructuous orders. “At present, orders placed three-six months ago are yet to reach us, and the prevailing situation represents a loss to us,” the member said.

Construction material sellers believe that if this situation persists, prices of such goods will eventually shoot up across the country.