China likely to suffer a Rs 4K crore loss this Rakhi season: CAIT

New Delhi, July 25: The Confederation of All India Traders (CAIT) anticipated that the Chinese business will be hit by a whopping 4000 crore during this Rakhi season. The CAIT itself imported Rakhi products from China worth Rs, 4000 crores. But against the background of the recent skirmishes with the Chinese troops in Galwan Valley and the sacrifice of 20-odd Indian soldiers, there is a growing demand for a boycott of Chinese goods. And this will affect the Chinese Rakhi trade, the CAIT believed.

 

The total sale during the Rakhi festival touches an estimated Rs 6000 crore out of which the Chinese contribution is around Rs 4000 crore.

The traders' body said that an estimated Rs 6,000 crore of goods are sold each year during the Raksha Bandhan festival in which China alone contributes about Rs 4,000 crore. In recent times, the China-made Rakhis and other materials required for making Rakhis have caught the attention of the people capturing significant share in the Indian market, the CAIT said.

The CAIT statement further said that the anti-China sentiment post-Galwan Valley episode, both the buyers and sellers, has stopped the import of the Chinese products. And as the demand for Rakhis increases, the adverse effect on Chinese products will be visible.

According to CAIT, buyers are showing interest in local products and are willing to pay a higher price for Rakhis made out of India sourced materials instead of China-sourced products. CAIT said that as per an estimate, about 50 crore Rakhis are sold every year in India, amounting to about Rs 6,000 crore, out of which China's exports alone are valued at about Rs 4,000 crore. "This year, China is sure to get a big jolt amounting to Rs 4,000 crore of business loss," the statement said.