Tuesday, 04 June 2013: While WTO rules still linger on, India leaves no stone unturned to protect the interests of domestic manufacturers that are being affected by Chinese products ruling the market. This could, however, alert other countries to drag India to WTO, calling it an unfair trade practices under the international agreement.
Telecom, heavy industries and renewable energy ministries will soon resurrect policies to guard domestic producers from the increasing threat from the foreign manufacturers who are getting cheaper equipment from China. These sectors are the three top contributors of annual manufacturing output financially but have slowed down in the last few years, with many companies aiming for cheaper Chinese equipment.
A senior official of the ministry of heavy industries told Hindustan Times, “The Bharat Heavy Industries Limited has already manufactured equipment required to generate power in the 12th plan. We have expanded facilities to meet the target of the 13th five year plan also. But, the buyers are opting for cheaper Chinese power generation equipment and we are helpless.”
Working on the same lines, telecom ministry is preparing guidelines to ensure that a minimum of 20 per cent equipment is procured from domestic manufacturers, to revive telecom manufacturing industry. “There is already a policy in place for public sector bodies prescribing procurement of certain amount of equipment from domestic players. Now, the ministry has formed guidelines to extend a similar policy framework for the private sector, a move opposed by certain foreign companies. A ministry committee has already identified 18 hardware items including sim-cards and modems to be mandatory procured from domestic players,” the report also stated.
Solar sector is also untouched by the impact of China. Facts state that almost 60 per cent of solar goods sold in India come from the northern neighbour. Similar steps are being taken in this regard as well.
