I'm a Master in India

Chapter 272: Tariff Barriers

How did the domestic media and public react to India's accession to the WTO?

Official major newspapers were touting it, private tabloids were wailing, and the public was enraged, taking to the streets to protest!

Yes, almost on the very day the news spread, Mumbai's streets were packed with demonstrators from various groups.

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

They were so angry, their necks and shoulders stiff, as if someone had stolen their money.

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

Some opposed India's accession to the WTO, some threatened to raise tariffs, some warned the government not to open up the market, concerning timber, textiles, furniture factories, plastics, small electrical appliances...

All the protesters were workers, from all walks of life; they regarded the WTO as a great scourge.

Joining the WTO meant that the Indian Government would have to completely open its doors, and all those unreasonable tariffs would have to be abolished.

100% tariffs on imported cars, 60% on electronic products, 113% on alcohol—all would be cut.

According to the latest WTO regulations, the average tariff for member countries should normally be maintained at 12.7%.

The average import tariff for Indian manufacturing is 73%, far higher than international counterparts.

This was, of course, to protect local industries from the impact of overseas products; high tariffs were a barrier.

Now, suddenly joining the WTO, did that mean the old protective wall was to be dismantled?

India's local manufacturing sector panicked; no, all industries panicked.

Indians are arrogant, but those entrepreneurs and factory owners who are bosses are self-aware.

Their products definitely couldn't compete with imported goods; besides price, they were completely outclassed in quality, style, and function.

If there were no high tariffs, what would the next scene be like?

A $30,000 Ford Taurus would drop to $15,000, cheaper than the Tata commercial vehicles produced in India.

Imported color TVs costing twenty to thirty thousand rupees would also gradually drop to around ten thousand rupees, with prices significantly shrinking.

If imported goods are cheaper than domestic goods, which will the public choose?

There will be no second answer to this question; after losing their price advantage, all local enterprises will be finished.

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

The economic principle here is simple: without tariffs, imported goods will become cheaper, and their locally produced products will have no buyers. Factories will close, and they will lose their jobs.

With the livelihood of entire families at stake, the workers were naturally enraged. They rushed onto the streets, shouting slogans, and the more radical ones even smashed foreign brand stores.

Ahem, while smashing, they would also take the opportunity for some 'zero-rupee shopping.'

Foreigners' stuff is still good, especially when it's free.

In short, Mumbai's streets are a mess now, and even the government building is surrounded.

Ron didn't expect things to change so quickly; there seemed to be no prior rumors.

Newspapers had discussed it, but everyone thought the negotiations would take several years.

Ron used to think about trying to seize the domestic electrical appliance market before the country's doors were fully opened.

Now, if there really are no tariffs, Sur Electrical Appliances will also be significantly affected.

Damn it, his juicers and rice cookers haven't even been put into production yet.

Just as Ron was about to go out and gather some information, a call suddenly came in.

The Mumbai Home Appliance Industry Association invited him to a meeting.

Well, it seems everyone is very anxious.

The meeting was still held at the State Guest House, and by the time Ron arrived, it was already packed with factory owners, big and small.

Ron was seated in the first row, and along the way, merchants rose to greet him.

The reputation of Suer TV was growing louder, already showing signs of becoming a giant in the electrical appliance industry.

The two seats next to him were none other than Dute from Videocon and Chandani from Onida.

Among the renowned appliance dealers in Mumbai, only these three companies stood out.

Dute's face was cold, but Chandani smiled and greeted Ron.

Enemies often meet, and everyone had their own thoughts.

Presiding over the meeting, besides industry veterans, was Bugibal, the Commerce Minister of Maharashtra.

The noisy venue had no order whatsoever, and no one cared about the Commerce Minister's platitudes.

Many factory owners impatiently asked if the government planned to abolish high tariffs.

If they did that, it would be tantamount to strangling India's manufacturing industry.

Some even threatened that if Maharashtra didn't implement specific measures, they would move their factories to Hyderabad, where the state tax would protect them.

Bugibal reassured everyone that the government would not stand idly by, and joining the WTO would not be much different from before.

The factory owners were not convinced, threatening that the protests would not stop until the government made a commitment.

It wasn't until Commerce Minister Bugibal guaranteed that measures would be introduced within a week that everyone finally quieted down a bit.

Actually, Ron wasn't too worried. He felt the Indian Government wasn't so foolish as to truly open its doors completely.

Indians earn in India, Indians spend in India; don't even think about taking a single cent home. Do you think this is a joke?

After abolishing tariffs, foreign capital would come in, make money, and also hit local manufacturing. New Delhi, no matter how incompetent, would not sit idly by and let this happen.

The fact is that populism is rampant in India, and foreign investment has never been well-received. There is absolutely no such good thing as actively lowering tariffs.

The sudden accession to the WTO next month might involve negotiations between New Delhi and Western countries, and Ron was temporarily unclear about the specific details.

As the industry bigwigs in the front row were whispering, a sudden quarrel erupted from the back.

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

They eagerly reached out, trying to get free milk tea and ice cream from the waiters.

Someone cut in line and jostled to snatch cups, causing tableware to fall and break, and the meeting room tables to be overturned.

They pushed and cursed, eventually coming to blows, spilling ceramic cups of milk tea and smearing ice cream all over everyone's heads and faces.

The security personnel on site couldn't stop them at all, and the chaos was even gradually spreading.

Ron almost laughed in anger. How could this bunch of good-for-nothings and incompetents compete with imported goods?

Eat shit! A bunch of uncouth idiots.

He stood up, not wanting to stay there any longer.

The Commerce Minister and other big businessmen also stood up to avoid the commotion, and some even stepped forward to loudly stop it.

"Mr. Sur." In the hallway, Commerce Minister Bugibal smiled awkwardly at him.

"What's New Delhi saying? Are they really going to bury India's manufacturing industry?" Ron asked.

"Of course not. Tariffs on the automotive and electronic products will remain unchanged for now."

"Then why isn't a statement being issued?"

"Waiting for New Delhi's notification, but they're preoccupied right now." Bugibal gloated.

"Oh?" Ron was curious.

"Farmers in North India have surrounded it. They're worried that imported agricultural products will ruin North India's agriculture."

Alright, after all, India still has the most farmers.

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

"In short, there's nothing to worry about; those foreigners definitely won't get any advantage." Bugibal vowed confidently.

Compared to foreign enterprises, officials like Bugibal preferred local bosses.

Would those foreign devils bribe them? Would they spend large sums of money to support politicians for years? Would poor locals support foreigners?

Impossible, the patronage network only accepts Indians; outsiders will not be trusted.

India had only broken free from British rule a few decades ago, and populism was rampant; it would definitely not recognize another foreign master.

Anyone who truly did so would surely be torn apart by a large mob.

Foreigners doing business in India usually don't resort to bribery either; they are high and mighty, perhaps even thinking they are bestowing favors upon the Indian Government.

Bugibal had not encountered such foreigners before; they lacked common sense and were very annoying.

So, for both public and private reasons, he did not want to see foreign goods impact local industries.

Without these bosses, who would give him money?

Once he had a general idea, Ron didn't linger and left the State Guest House directly.

Even if India joined the WTO, tariffs would not be adjusted in a short period.

Most likely, they would be gradually adjusted over time, for example, reduced to a certain level in the first few years, and finally to the international normal level before a certain year.

But India, well, those who know, know; it's good at stalling. Not dragging it out for ten or twenty years would be a disservice to its reputation.

Yes, Sur Electrical Appliances needs to accelerate its expansion; the window of opportunity left by the era's dividends is getting shorter.

"Ron."

Just as he returned to Sur Electrical Appliances and was about to enter, a call came from the doorway.

Anil subconsciously placed his hand on his waist; it was a burly man.

Ron lightly patted his shoulder, signaling that it was fine.

"Johnny?"

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

"What's the matter?"

"Would it be convenient... to talk over there?" Johnny tilted his head towards the street corner.

"Alright, we haven't seen each other in a long time."

Ron led him to the street corner, while Anil and the others alertly spread out at various intersections.

Johnny couldn't help but feel a touch of melancholy in his eyes as he watched this scene.

"Can you persuade Hadd Bai?" He hesitated repeatedly before finally making up his mind to speak.

"Huh?" Ron was puzzled. "Is there going to be a gang war here in Mumbai?"

Recently, Mumbai's underworld has been restless, reportedly due to a major leader of the Dawood Gang falling out with Dawood.

The matter began with the Mumbai High Court's release of the investigation report on the bombings. Everyone knew that most of the participants were herdsmen.

The night before the report's release, the entire city held its breath.

The herdsmen's gangs in Madanpur were sharpening their knives, the police were on high alert, and the Shiv Sena government was also aggressive.

A major battle seemed inevitable, with each side pointing fingers at the other.

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

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

Nevertheless, under external pressure, a few names from the report still circulated.

The Dawood Gang, as the instigators of the incident, was naturally on the list.

As things became more and more mysterious, a leader finally openly jumped out and distanced himself from Dawood.

That leader was a Hindu. He formed his own gang, the "Big Brother Gang," and vowed to eliminate all herdsmen involved in the bombings.

As a result, these two gangs started fighting. Recently, both sides have been sending gunmen to kill each other's high-ranking members.

Ron had vaguely heard that Mumbai's lower strata had become chaotic again.

He thought Johnny came for this matter. Hadd Bai's identity was somewhat awkward; he was a herdsman but didn't engage in violent business, yet he was caught in the middle and difficult to reconcile.

"No, not the gang. Is he leaving Mumbai?"

"Where to?" Ron was startled.

"Persian Gulf countries, to fight."

"What?" This time, Ron was truly shocked.