Festival of Light, Shadows of Trade

As talks circle tariffs, RCEP and U.S. trade terms, India's small producers and farmers bear the brunt of policy contradictions between swadeshi ambition and global dependence

- DIPANKAR DEY

Prime Minister Narendra Modi, on Tuesday, while greeting the nation on the occasion of Deepavali/ Diwali, urged citizens to adopt Swadeshi products and promote “Ek Bharat, Shreshtha Bharat”.

He also advised citizens to contribute to building a “Viksit” (developed) and “Aatmanirbhar” (self-reliant) India. Diwali festival exceptionally stimulates nearly all segments of the economy, earning it the nickname the “Celebration of the Indian Economy”. Notwithstanding the Prime Minister's passionate appeal to buy swadeshi products, newspaper reports suggest that around 70 per cent of Diwali market items, including idols, decorative pieces, clay utensils, and firecrackers, were imported primarily from China. This indicates how deeply the Chinese products have penetrated into the Indian market. Nonetheless, this year, a surge in demand for local Diwali products like traditional diyas and green crackers has also been reported.

GROWING DEPENDENCE ON CHINA

Despite unresolved border conflicts and xenophobic calls by a few Indian leaders to boycott China, India's dependence on its big neighbour is on the rise. Mainland China emerged as India's top import source in the first half (AprilSeptember) of this financial year with USD 62.89 billion worth of inbound shipmentsa rise of 11.2 per cent. Imports from Hong Kong (USD 11.7 billion) have increased by 20 per cent compared to the last fiscal period