Will PM Modi’s Call Lead To A Dark Diwali For China? Analyzing India-China Trade Dynamics

Prime Minister Narendra Modi, in his recent Mann ki Baat, appealed to people to opt for Made in India stuff during the nearly two-month festive season, which includes Ganesh Chaturthi and other festivals like Navratri, Dussehra, Diwali, and Chhath. Such a period generally witnesses a flood of cheap Chinese items in the Indian market. Modi said that buying earthen lamps for the Vocal for Local initiative was not enough. “You should promote local products made in your area more and more. Any such product, that has been made with the sweat of an Indian artisan, that is made on Indian soil, is our pride – we always have to lend glory to this pride,” he said.

With the really complicated trade relationship with China, still, there seems to be a dominant trend of consumers demanding Made-in-India products in the festive season. Modi noted that completion of ten years of the Make in India initiative and contributions from large industries and small retailers that have all begun to show up in festive sales.

During this Rakhi festival, an all India confederation of traders reported a resounding preference of indigenous Rakhis over the Chinese variety. The organization said, “For several years now, only indigenous Rakhis have been sold in the country, and this year too, there was neither demand for nor any presence of Chinese Rakhis in the market.”

Indian decorative lights started competing against Chinese products last Diwali which till then dominated the market. Dealers claimed that imported Chinese lights were preferred for innovative designs, though at a lesser cost, but many customers would opt for Indian lights as it was durable and required very low maintenance. The most popular items included pipe light strings, battery-operated diya lights, LED chandeliers, flower lights, special golden lights for decoration in temples, and LED ‘kalash’ lights. A trader said, “Reputed Indian companies too have come out with fancy lights designed like the Chinese variants and though they are expensive, people are buying them as they last longer.”.