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Smuggled Chinese Firecrackers: A Threat to India’s Economy and Environment

Smuggled Chinese Firecrackers: A Threat to India’s Economy and Environment

Smuggled Chinese Firecrackers: A Threat to India’s Economy and Environment
October 14
16:50 2024

By

venkata phani kumar

As Diwali approaches, India’s firecracker industry, once a booming hub of domestic production in towns like Sivakasi, faces severe disruptions. The illegal influx of cheap Chinese firecrackers, despite official bans, is eroding the industry’s market share, leading to significant job losses and environmental concerns. The smuggling of these hazardous products not only endangers the livelihoods of millions but also undermines efforts to combat air pollution during the festival of lights. India is grappling with the challenge of balancing environmental responsibility and economic survival amidst lax enforcement and international trade pressures.

 illegal Chinese firecrackers still make their way into India, despite being officially banned from import. These fireworks are often smuggled in under the guise of other goods and are particularly popular in northern India. They are cheap, making them appealing to traders, but their availability severely impacts the domestic industry, especially in Sivakasi, Tamil Nadu, which produces over 90% of India’s fireworks.

Sivakasi’s firecracker industry, valued at around ₹80 billion, has seen a drop in sales by as much as 30-40% due to several factors: competition from smuggled Chinese products, pollution concerns leading to a crackdown on traditional fireworks, and a lack of financial support for transitioning to “green” fireworks. This has caused a significant reduction in the employment of local workers, with over 800,000 people directly involved in the industry. When combined with the ancillary sectors such as transportation and retail, the number of affected individuals rises to over five million.

In terms of tax losses, while exact figures are hard to pin down due to the unregulated nature of smuggled goods, the black-market trade in firecrackers results in considerable losses in duties and taxes that would have otherwise gone to the Indian government.

The situation is exacerbated by inconsistent enforcement of bans on polluting fireworks and the rise of unlicensed manufacturing units, further threatening the livelihoods of those working in the legitimate industry. The need for stronger regulations and enforcement, along with financial support for transitioning to eco-friendly fireworks, is critical for the survival of India’s firecracker industry.

China-made Diwali crackers are known to significantly contribute to pollution in India. These fireworks, often smuggled into the country, are more polluting than those produced domestically due to their use of hazardous chemicals like potassium chlorate and barium nitrate, which have been restricted in India. These substances release high levels of harmful particles and gases, worsening the already critical air pollution in Indian cities during Diwali. For instance, the Air Quality Index (AQI) in cities like New Delhi can spike to hazardous levels, far exceeding safe limits during the festive season.

Impact on Environment

Chinese crackers, being cheaper, often do not comply with India’s environmental standards. They release large quantities of particulate matter (PM), including PM2.5 and PM10, which penetrate deep into the lungs, causing respiratory issues and exacerbating existing health problems. These fireworks also emit sulfur dioxide (SO2), nitrogen oxides (NOx), and other toxic pollutants, which lead to smog formation and deteriorate air quality.

Steps India Should Take Without Violating Bilateral Relations

1. Strengthen Customs and Border Control: The Indian government should intensify efforts to prevent the smuggling of Chinese fireworks through improved border surveillance and stricter customs enforcement. This can be done by collaborating with international customs bodies and utilizing advanced technology like AI for detecting illegal shipments.

2. Promote Eco-friendly Alternatives: Instead of outright banning imports from China, India could promote green firecrackers that meet international environmental standards. The Indian government can engage with both domestic and international producers to encourage the manufacture of eco-friendly products, offering tax incentives and financial support to companies adopting green technologies.

3. Engage in Diplomatic Negotiations: To avoid direct trade conflicts with China, India can approach the issue diplomatically through established forums such as the World Trade Organization (WTO) and bilateral trade discussions. India could encourage China to follow international guidelines on the environmental impact of their products. Collaborative research initiatives could also be proposed for developing less polluting fireworks.

4. Public Awareness and Campaigns: The Indian government can launch national awareness campaigns emphasizing the health risks and environmental damage caused by Chinese fireworks, thereby reducing demand. Public and private sectors can collaborate to highlight the benefits of using eco-friendly alternatives.

5. Boost Domestic Production of Green Fireworks: Encouraging the transition of local industries like Sivakasi to produce green crackers through subsidies and technology sharing can help offset the influence of Chinese products. This will support local employment while ensuring compliance with environmental norms.

image courtesy by google

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