Diwali 2024: Four years on, what is the impact of ‘vocal for local’ this festive season?

In recent years, the call to boycott Chinese products has gained significant momentum in India, especially around the festive season of Diwali. The movement to shun goods made in China has been driven by a combination of nationalist sentiments, economic self-reliance, and geopolitical tensions, particularly the border disputes following the 2020 Doklam incident in which 20 Indian soldiers lost their lives in a clash with the northern neighbour at Ladakh.

The impact of this boycott has been felt across multiple sectors. Four years on, what is the impact of the ‘Boycott Chinese products' on the ground ahead of the Festival of Lights? We take a look.

IN PHOTOS: Mumbaikars gear up for Diwali festival; shop for firecrackers

1 year agoPHOTO GALLERY

Sentiment still the same, say traders

The movement to boycott Chinese products gained traction in 2020 after the Galwan Valley border clash. The incident came at a time when India was battling the pandemic. The news of its soldiers' deaths not only sparked outrage but also intensified existing anti-China sentiments that had emerged following the Covid outbreak. There was a surge in calls to reduce dependence on Chinese imports and encourage citizens to buy made-in-India products instead. This idea gained momentum when Prime Minister Narendra Modi made a call for ‘Atmanirbhar Bharat (self-reliant India)', to boost domestic manufacturing and reduce the country's reliance on foreign goods.

"I vividly remember buyers telling us to only show them local products," says Vijay Soni, a shop owner from Bhayander. "This year, we have not had many customers buying Diwali goods as the sales peak only days before Dhanteras. However, at least for other festivals, such as Ganesh Chaturthi and Navratri, we have seen many customers opting for domestic products," he adds.

Festivals in India, especially Diwali, typically see a surge in sales, with consumers buying not only decorative and puja items and lights, but also expensive gifts such as gadgets. Chinese products have traditionally dominated the market as they are cheaper, unique, and widely available.

"It's all very well to say ‘Vocal for local'. But the fact is, are our products cheaper? Even if you go to the biggest brands, a chunk of their products are made in China. When Indian brands make available a diverse range of products at a cheaper rate, more people will be inclined to buy domestic goods," says Ankit Singh, a marketing executive.

Praful Shah disagrees. "In the past few years, we have had a surge in the number of domestic products. This is not only because companies are manufacturing a diverse range of products but also owing to the demand for more local goods from customers. While this year I have not had many customers making Diwali purchases yet, last year several of them had opted for Indian products even if they were Rs 40-50 more.

‘Rs 50,000-crore loss for Chinese products in sight'

The Confederation of All India Traders (CAIT) expects the festival season to witness spending of Rs 2 lakh crore during the Diwali festival. CAIT said that like the previous year, this year too, it has appealed to citizens to go local. The confederation estimates that the push for domestic products will create a dent of around Rs 50,000 crore for the Chinese economy.

Many Indians have expressed a willingness to pay more for locally-made products to support domestic businesses and reduce dependence on Chinese goods thereby impacting its economic influence in the country. There is a growing interest in ‘vocal for local' products, especially for traditional clay lamps over cheaper, mass-produced Chinese LED lights, locally-made decorations, and textiles.

Meanwhile, a survey conducted by CAIT revealed that nearly 70% of respondents indicated a preference for Indian products over Chinese goods for Diwali in 2023.

Praveen Khandelwal, Secretary-General of CAIT, stated, "The market is witnessing a paradigm shift. There's a strong sentiment against Chinese products, especially around Diwali, when the emphasis on traditional values and supporting fellow Indians is high. We expect this trend to continue, which will greatly benefit our domestic industries."

Impact on local industries

The boycott movement has had a positive impact on several local industries, particularly small-scale manufacturers and artisans.

"This movement has largely benefitted small traders, especially those who sell diyas and lights," adds Shah.

"There is a revival of traditional crafts, too. For example, the demand for locally-crafted decorative items, traditional toys, and earthen diyas has surged as more people consciously choose to support local artisans," says entrepreneur Prakriti Mishra.

The Khadi and Village Industries Commission (KVIC) reported an increase in sales of its products during the Diwali season. Additionally, local markets have seen a rise in the availability of Indian-manufactured electrical lights and home decorations, as businesses cater to the growing demand for domestic products.

Limitations

While the boycott has positively impacted some sectors, it has also exposed the limitations of the Indian manufacturing sector. The demand for certain products cannot always be met by local suppliers, particularly when it comes to electronics and affordable goods. Despite efforts to promote Indian-made alternatives, Chinese products remain dominant in areas where India lacks the manufacturing capability or cost-effectiveness to compete.

"Phones are just assembled here. They are still manufactured in China. It's not just electronics. When we went to one of the biggest stores in a suburban mall, we found that most of their cheaper footwear was from China. So even if consumers wish to buy local, they need to have the option available, too," says Suhas K, an Andheri resident.

A logistics employee, who did not wish to be named, said, "We live in a globalised world and the boycott comes with its limitations. While common citizens might opt for domestic products, and the movement has gained momentum, the fact is China remains a crucial trade partner for India and supplies essential raw materials that are used in the manufacturing of several goods. The overall trade between the two countries has continued to grow, despite the boycott movement. So at a national level, we are continuing to help their economy, too. We need long-term measures to completely end our dependence on China."