According to the latest data released by the Ministry of Commerce and Industry on May 14, Indian imports rose 53. 7% year on year in March; and they reached a staggering 167% in April! electrical connector types, pin header and driveway reflectors should be noted.
In fact, in 2020, China has once again become India’s largest trading partner. According to statistics from the Ministry of Commerce and Industry, the total bilateral trade with China reached $ 77. 7 billion in 2020, although lower than $ 85. 47 billion in 2019, China surpassed the United States as the first of its Indian trading partner.
Affected by the epidemic, India’s overall imports fell sharply in 2020, or about 40% , but India imported $ 58. 7 billion in goods from China, ranking first, with the total of the United States and the United Arab Emirates.
Bloomberg said “New Delhi has more reliance on imported machinery than its efforts to curb trade with China,” . India relies heavily on heavy machinery, telecommunications equipment and domestic appliances.
“The continued reliance on Chinese imports is due to the lack of domestic supply,” said Amitten Dupalit, an economist at the National University of Singapore. “Goods imported from China are cheap and are sufficient to be available quickly. Goods imported from other sources are not as cost – effective and convenient as in China.”
In April, demand for oxygen generators, ventilators and other epidemic prevention supplies soared after the second wave of India exploded. According to data released by the Chinese Ministry of Foreign Affairs, in April, China exported more than 26, 000 ventilators and oxygen machines to India, more than 15, 000 monitors, and pharmaceutical materials and drugs of nearly 3, 800 tons. Relevant Chinese companies have received more than 70, 000 Indian oxygen machine orders.
Chinese Ambassador to India Sun Weidong posted a social media post on May 2 nd, talking about the overtime work of Chinese oxygen machine makers during the May Day holiday.
According to Made-in-China.com, visits from India have surged since March, up to 21. 4% year – on – year and 16. 3% ; inquiries rose 15. 8% year on year and 9. 3% during the same period.
Health & Medicine product weekly growth averaged 91% in 4 – May,
Oxygen machine (Oxygen Generator) even exploded by 1114% ;
Oxygen Concentrator growth followed to 837% ;
Physical therapy and rehabilitation equipment (Physical Therapy Equipment) also reached a 320% increase.
However, while Chinese manufacturers are working overtime to make Indian orders, some social media opinion is fermentation —— “India Today” recently released a “price rise,” China, listing invoices, photos and other so – called “evidence” , and citing anonymous buyers, “sources” , claiming that “China (company) on the issue of life and death at the lives of the Indian people” .
The report cited Chinese companies “price gouging,” such as a brand of oxygen makers, which cost $ 340 each on April 30, but prices already rose to $ 460 on May 12. And the truth is that enterprises in the oxygen machine industry chain are now facing soaring costs, and factories have nothing to do.
A 5L oxygen maker in the industry now costs around 3, 000 yuan, but some Indian customers are far too expensive. Some Indian customers even believe that Chinese companies will deliberately raise prices when Indian demand surges, so they bargain repeatedly.
The price of an oxygen maker in the Indian market has been priced to “hundreds of thousands or even hundreds of thousands of rupees” . But the “middlemen” who make the difference are not necessarily as the Indians think.
According to the Delhi police report, they arrested two executives and three employees of Indian Matrix on charges of fraud and violation of the Epidemic Act and the Fundamental Commodity Act. The company will sell more than 7, 000 oxygen machines bought from China and other places to COVID – 19 patients at high prices, police said.
Indian buyers have been known for being difficult, but the biggest trade with India is that Indian law allows importers not to pay; returns are impossible in India. So the worst result exported to India could be —— hysteresis auctions with empty money.
Indian “nonpayment” is technically legal, as the Cantonese saying says that —— goods died on the ground. Technically technically technically:
IGM( cargo manifest declaration is required 3 days in advance) and once the importer code (IEC number) is indicated, the importer; either owner, forwaror shipping company cannot control the cargo, under FOB or CIF, or whether ” TO ORDER OF SHIPPER”( directed bill of lading), either back or not, either L/C,D/P or T/T, Indian importer, and wait for the customs auction. In the customs auction, the consignee of the bill of lading will be notified first, because the bill of lading consignee belongs to the first beneficiary locally!
Some unscrupulous Indian guests will even take advantage of this to abandon the customs clearance of customs is too high.
Therefore, although some category orders in the Indian market are currently hot, Chinese exporters still need to pay attention to the multiple risks of exporting to India.
Clearing the risk. The epidemic in India continues to deteriorate, leading to varying degrees of blockades and some ports and logistics industries, and the clearance process may be blocked.
Exchange rate risk. The Indian rupee rose slightly against the dollar from January to March, but it became the world’s worst – performing currency in April, falling nearly 4% against the dollar. When a country’s currency depreciate suddenly and sharply, it will be conducive to export and import, and import costs will rise.
Risk of the enterprise survival. More than 50 percent of Indian companies surveyed said their revenues have fallen by 20 – 50 percent so far, according to the survey. The smaller the enterprise, the worse the impact. According to S & P, the proportion of non – performing loans in the Indian banking system will be 12% , the worst country in the world. And that number may continue to climb as the outbreak worsened.
Emotional risk. It can also be seen from the above article that the Indian people’s mood for China is “subtle” . After the first wave of the outbreak in India last year, the people have been instigated to “resist” Made in China. The more the outbreak and economic downturn, the stronger the demand for India to shift the focus of domestic conflicts.
Extreme circumstances. Recently, a foreign trade person told me that all of my Indian customers (scattered in different cities) were infected with COVID – 19. Many sellers are also worried that in case of extreme circumstances “goods arrived, people lost” , or the buyer excuse for illness and missing, and refused to pay the final money.
Butterfly effect. Influenced by the COVID – 19, the shipping industry has fallen into the worst crisis of seafarers shift change after World War II. India is one of the main sources of seafarers, and out of over 200. 7 million seafarers worldwide come from India. The outbreak of the epidemic in India has exacerbated the shortage of seafarers. In addition, some countries and regions have imposed stricter epidemic prevention regulations on ships and personnel involved on Indian shipping routes, leaving many shipping companies under pressure to adjust seafarers. Mark O’Neil, president of the International Association of Ship Managers, also warned that the impact of the March Suez Canal blockage on the global supply chain could be seen as “trivial” compared to the seafarers ‘ shift shift crisis.
This market, is always the “danger” and “machine” coexist.
Post time: May-25-2021