I am a master in India

Chapter 272 Tariff Barriers
How did India's domestic media and public react to its accession to the WTO?
Official newspapers were praising the cause, while private tabloids were lamenting its fate. The public was outraged and took to the streets in protest!

Yes, almost on the day the news broke, the streets of Mumbai were filled with demonstrations from various groups.

Those people looked extremely angry, men and women shouting slogans and waving their fists.

They were furious, their necks and shoulders stiff with rage, as if someone had stolen their money.

If you listen carefully, you'll find that their demands are varied.

Some opposed India's accession to the WTO, some threatened to raise tariffs, and some threatened the government not to allow any changes in tariffs, affecting timber, textiles, furniture factories, plastics, and small appliances.
The marchers were all workers, workers from all walks of life, who viewed the WTO as a monstrous threat.

Joining the WTO means that the Indian government must completely open its doors to the world and abolish all the unreasonable tariffs of the past.

Imported cars are subject to a 100% tariff, electronic products to a 60% tariff, and alcoholic beverages to a 113% tariff; all of these tariffs will be eliminated.

According to the latest WTO rules, the normal level is for member countries to maintain an average tariff of 12.7%.

India's average import tariff for manufactured goods is 73%, far higher than that of its international counterparts.

This is, of course, to protect domestic industries from the impact of overseas products; high tariffs are a barrier.

Now that China has suddenly joined the WTO, does that mean that the previous protective walls will be torn down?

India's domestic manufacturing sector is in a panic—no, every industry is in a panic.

Indians are arrogant and conceited, but those business owners and factory owners are self-aware and self-conscious.

Their products are absolutely no match for imported goods. Apart from the price, their quality, style, and function are all completely outclassed.

What would happen if there were no high tariffs?

The $3 Ford Taurus will drop to $1.5, making it cheaper than Tata commercial vehicles produced in India.

Imported color TVs that cost 20,000 to 30,000 rupees will gradually drop to around 10,000 rupees, a significant price reduction.

If imported goods are cheaper than domestically produced goods, which would people choose?
There is no other answer to this question: once the price advantage is lost, all local companies will be doomed.

The factory owners couldn't sit still, so they incited their employees to take to the streets in protest.

The underlying economic principle is simple: without tariffs, imported goods become cheaper, and no one will buy their domestically produced goods. Factories will close down, and they will lose their jobs.

The workers were naturally outraged, as their livelihoods concerned their entire families. They took to the streets chanting slogans, and some even vandalized foreign brand stores.

Well, while they're smashing things up, they'll also be bringing a wave of free shopping.

Foreign products are pretty good, especially when they're free.

In short, the streets of Mumbai are now in a mess, and even government buildings are surrounded.

Ron didn't expect things to change so quickly; there seemed to have been no prior indication of what was going on.

The newspapers also discussed it, but everyone thought the negotiations would take several years.

Ron had previously thought that he should try his best to seize the domestic electronics market before the country was fully opened.

Now things are different. If there really were no tariffs, Suer Electric would also be significantly affected.

Damn it, he hasn't even had time to get his juicer and rice cooker installed yet.

Just as Ron was about to go out and ask for some information, a phone call came in.

The Mumbai home appliance industry association invited him to a meeting.

Well, it seems everyone is quite anxious.

The meeting was still held at the state guesthouse, which was already packed with factory owners of all sizes when Ron arrived.

Ron was invited to the front row, and businessmen along the way stood up to greet him.

Suer TVs are becoming increasingly well-known, showing signs of becoming a giant in the electronics industry.

The two people sitting next to him were none other than Dutt from Videocon and Chandani from Onida.

There are only three well-known electrical appliance retailers in the entire city of Mumbai.

Dutt had a cold expression, but Chandani greeted Ron with a smile.

It's said that enemies are destined to meet; everyone has their own agenda.

In addition to industry leaders, the meeting was chaired by Maharashtra's Minister of Commerce, Bougibal.

The meeting was chaotic and disorderly, and no one paid any attention to the Minister of Commerce's ramblings.

Many factory owners are eagerly asking whether the government plans to abolish high tariffs.

If that were done, it would be tantamount to strangling India's manufacturing industry.

Some even threatened that if Maharashtra did not take concrete measures, they would move their factories to Hyderabad, where the state tax would protect them.

Bujibar reassured everyone that the government would not stand idly by and that joining the WTO or not would not make much difference before.

The factory owners refused to listen, vowing that the protests would not stop until the government made a commitment.

People calmed down a bit after Commerce Minister Boujibars assured them that measures would be introduced within a week.

Ron wasn't too worried. He didn't think the Indian government was that stupid as to really open its doors completely.

Earn money in India, spend it in India, don't even think about bringing a single penny home. Do you think this is a joke?

After the tariffs were removed, foreign investment made money and damaged the local manufacturing industry. No matter how incompetent New Delhi is, it will not stand idly by and watch this happen.

The truth is that populism is rampant in India, foreign investment has never been welcomed, and there is no such thing as voluntarily lowering tariffs.

The sudden accession to the WTO next month may involve negotiations between New Delhi and Western countries, and Ron is not yet clear on the specific details.

As the industry leaders in the front row were whispering among themselves, a quarrel suddenly broke out from behind them.

Ron turned his head and saw dozens of people in business suits pushing and shoving around a food cart in the back row.

They eagerly reached out, wanting to receive free milk tea and ice cream from the waiter.

People cut in line and jostled for cups, causing cutlery to break and tables in the venue to be overturned.

They jostled and cursed each other, eventually turning into a fight. The ceramic cups containing milk tea spilled out, and ice cream was smeared all over everyone's heads and faces.

The security personnel at the scene were unable to stop it, and the chaos was gradually spreading.

Ron was almost laughing in anger. How could this bunch of incompetent fools and mediocre people compete with imported goods?

Eat shit! A bunch of worthless idiots. He stood up, not wanting to stay there any longer.

The Minister of Commerce and other prominent businessmen also stood up to avoid the situation, and some even stood up and shouted to stop them.

“Mr. Sur.” Commerce Minister Bougibar smiled awkwardly at him from the corridor.

“What are they saying in New Delhi? Are they really going to destroy India’s manufacturing industry?” Ron asked.

"Of course not, tariffs on automobiles and electronics will remain unchanged for the time being."

"Then why not issue a statement?"

“They’re waiting for news from New Delhi, but they’re too busy taking care of themselves right now,” Bougibal said gleefully.

"Hmm?" Ron asked curiously.

“Farmers in North India have surrounded the area, fearing that imported agricultural products will destroy North Indian agriculture.”

Okay, in the end, India still has the largest number of farmers.

Even for the sake of votes, New Delhi has to consider the feelings of farmers.

"In short, there's nothing to worry about. Those foreigners definitely won't gain any advantage," Babgil said confidently.

Compared to foreign companies, officials like Babgil prefer local business owners.

Would those foreigners bribe them? Would they spend large sums of money supporting politicians year after year? Would the local poor support foreigners?

Impossible. The Blessing Network only accepts Indians; outsiders will not be trusted.

India has only been freed from British rule for a few decades, and populism is rampant. It will absolutely not recognize a foreign master again.

Anyone who actually does that is guaranteed to be torn apart by a large mob.

Foreigners doing business in India usually don't resort to bribery; they're arrogant and might even think they're doing the Indian government a favor.

Babgil has encountered foreigners like this before—they have absolutely no sense of propriety and are extremely annoying.

Therefore, both publicly and privately, he does not want to see foreign goods impacting domestic industries.

Without these bosses, who will give him money?

Having roughly figured things out, Ron didn't linger and went straight out of the state guesthouse.

Even if India joins the WTO, its tariffs will not be adjusted in the short term.

It is highly likely that the adjustment will be made gradually over time, for example, the level will be reduced to a certain level in the first few years, and then reduced to the international normal level in a certain year.

But India, as those who know, knows best; they're good at playing dirty tricks. If they don't drag it out for ten or twenty years, they'll be letting down their reputation.

Yes, Suer Electric needs to accelerate its expansion, as the window of opportunity left by the era's dividends is getting shorter and shorter.

“Ron.”

Just as he returned to Suer Electric Appliances and was about to go inside, a shout came from the doorway.

Anil instinctively placed his hand on his waist; it belonged to a burly man.

Ron patted his shoulder lightly to indicate that it was alright.

"Johnny?"

"Do you have time now?" He looked somewhat anxious and ashamed.

"what's up?"

"Is it convenient? Shall we talk over there?" Johnny tilted his head toward the street corner.

"Okay, it's been a long time since we last met."

Ron led him to the street corner, while Anil and the others cautiously dispersed at various intersections.

Johnny's eyes flashed with a sense of desolation as he witnessed this scene.

"Can you try to persuade Hadbai?" He hesitated for a long time before finally deciding to speak.

"Huh?" Ron asked, puzzled. "A gang war is brewing in Mumbai?"

The underworld in Mumbai has been quite unsettled lately, reportedly due to a falling out between a high-ranking member of the Daoud gang and the Daoud.

The story begins with the Mumbai Supreme Court's investigation report on the bombings, and everyone knows that most of the participants were herders.

The entire city held its breath the night before the report was released.

The herder gangs in Madanpur are sharpening their knives, the police are on high alert, and the Shiva military government is also acting aggressively.

A major battle seemed inevitable, with each side turning their spearheads against the other.

As a result of the city's precarious situation, the Mumbai Supreme Court suddenly halted the release of the report.

Their excuse was that some details of the investigation were still unclear, but everyone knew it was out of fear that Mumbai would fall into riots again.

Nevertheless, due to external pressure, some of the names in the report still leaked out.

Daoud Gang, as the mastermind behind this incident, is naturally on the list.

As the story became increasingly bizarre, a leader finally publicly stepped forward to distance himself from Daoud.

The leader was a Hindu who had formed his own gang, the "Big Brother Gang," and he vowed to eliminate all the herders involved in the bombing.

As a result, the two gangs started fighting, and recently both sides have been sending gunmen to kill each other's top leaders.

Ron had vaguely heard rumors that chaos had broken out in Mumbai's underclass again.

He thought Johnny had come for this matter. Hadbai's position was rather awkward; he was a herdsman but did not engage in violent business, yet he was caught in the middle and difficult to reconcile.

"No, not a gang, he's leaving Mumbai?"

"Where to?" Ron was taken aback.

"The Gulf states, go to war."

"What?" Ron was genuinely surprised this time.

(End of this chapter)