Proceedings of The 4th International Conference on Applied Research in Management, Economics and Accounting
From ‘Dragon’ to the land of ‘Ascending Dragon’A case for Indian Electronics Industry to become ‘AtmaNirbhar by replacing China with Vietnam
Kashish Gupta, Kanika Gupta
The policy of Atma-nirbhar Bharat talks about making India a self-sufficient and self-generating economy. This self-reliance sentiment was bolstered by anti-China protests due to the Galwan valley standoff. In this context, many Indian nationalists have vouched for the boycott of “Made in China” products. This has polarised the whole idea of Atma nirbhar Bharat as solely restricting the imports from China due to which the idea of substituting it with Vietnam has been hailed as a viable solution. This thus gives us enough impetus to empirically analyze the bilateral trade between India – China and India – Vietnam. Additionally, it is important for India to be selective and strategic while taking steps to discourage imports. Since electronics 50% share of total Chinese imports, this study primarily focuses on this industry. In this context, this paper uses the tools of comparative data analytics and constitute a Vector Error Correction Model (VECM) to analyze the efficacy of substituting Chinese imports with those from Vietnam from a short-term and long-term perspective.
Keywords: Atmanirbhar bharat, Boycott China, Vector error correction model, electronics, chemicals.