What is Colonialism ?
When one power or one set of people control another power or another power or another set of people in such a way that essentially they can exploit them economically. Ex- Colonise power or colonise people to do low value work for their coloniser or produce low value raw materials for their coloniser. Which then import and convert into high value manufactured goods and essentially sell it back to the same people one can do this because they have colonised them.
Until the 18th century India was a dominant player in global trade. India was a big exporter of finished goods particularly textiles like Dhaka Muslin, Kashmiri Pashmina, Carpets of Lahore. But after the consolidation of British power in India the raw materials such as cotton were exported from India to processed in mills of Lancashire and the finished clothes were imported by India. And it one of the example of the Drain Theory where Indian wealth is drained in England.
The way of assessing trade relationship between two countries
Dump System: Export surplus India enjoys a healthy trade surplus with US with $ 28.8 billion India has a deficit of $ 45 billion with China
India-Saudi Arabia Trade
Trade depends on what you are importing or buying from one country and what you are exporting or selling to one country. India's trade deficit with Saudi Arabia is $ 28 billion but India's export to Saudi Arabia is $6 billion. But this is not a colonial relationship because Saudi Arabia sells India the raw materials that India does not produce i.e. crude oil ,cooking gas (LPG), Diammonium Phosphate (DAP) it is use for fertiliser. India export rice, refined crude oil. India and Saudi Arabia do not share colonial relationship as both countries exchange raw materials with each other.
India-China Trade
India's export to China is one-fifth of India's import from China. Last 6 years India's average export was $13billion to China and $66billion average import from China. On an average over the last 6 years. India's trade deficit with China stands at $57billion. We not call this relationship colonial if India was importing crude oil, iron ore ,bauxite from China and converting it into steels, aluminium sheets or finished refined goods and exporting back to China even if value was low. But India exports China Iron ore, a few petroleum fuels, organic chemicals, refined copper, cotton yarn & cotton. India is a large exporter of refined copper in that form it is called copper cathode.
India import computer, phone, video equipment ,semi-conductor devices ,electronic circuits ,transistors ,heterocyclic compounds (drugs ,pharma ,dyes chemicals) ,fertilisers ,TV cameras ,Automobile parts ,capital projects equipment (ex -generator of powerplant).
Much of India's import from China are complex manufactured goods, while exports to china are low value goods. India's colonial trade relationship with China has similarities with the drain system the British Empire had imposed on India.
India-USA Trade
According to US Trade Representative & US Ministry of Commerce India's export to US in 2019 was $87.4 billion and India's import from US was $58.6 billion. India enjoyed surplus of $28.8 billion. India export services such as software ,intellectual property right. India's export in services was $29.7 billion and import was $24.3 billion and surplus India enjoyed in services is of $5.4 billion.India import fuels ,precious metals and stones (diamond),aircraft ,machinery ,organic chemicals. India's import from agricultural sector of US is of $1.8billion i.e. tree nuts such as pistachio ,Almonds. India's export finished diamond ,pharma , drugs ,machinery ,rice , spices ,essential oil.
Conclusion
India's current trade relationship with China is purely disadvantageous for India. Not to buy from China is not the solution rather start manufacturing more and start analysing what is it that destroys our manufacturing. Our land laws .labour laws ,bureaucracy ,poor ranking in ease of doing business.
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