Avoid pop nationalism


India faces a grave strategic challenge from China which has naturally upset the entire country. The reaction, however, should be thought through to avoid harming Indian businesses and labour force. In a world where economies are linked through cross-border capital and technology flows and globalised supply chains, reflexive calls for boycott of products or services which have some Chinese investments can be counterproductive.

To illustrate, some Indian unicorns such as MakeMy Trip and Zomato have received investment from Chinese entities.  However, they are Indian companies largely employing locals who have raised capital from across the world. Chinese investors are among them. Thereby, targeting such companies results in collateral damage which encompasses Indian investors and employees.

The takeaway is that pop nationalism in responding to China can be counterproductive.

Read more: Govt seeks product-wise details from industry to curb cheap, low-quality imports from China, says sources



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