Wednesday, June 19, 2013: The Ministry of Micro, Small and Medium Enterprises (MSME) says that increase in the import of Chinese goods is affecting the industry. According to a survey by the Associated Chambers of Commerce and Industry (ASSOCHAM), an industry body, in March, around 1,000 SMEs, engaged in the production of Holi items, have closed down because of the increase in imported Chinese products.
The ministry’s data, compiled by the Directorate General of Commercial Intelligence & Statistics (DGCIS), shows that of the products manufactured by MSMEs, eight major categories have been infiltrated by Chinese goods. These include electronics and electrical, metallurgical, mechanical, chemical, ceramic-based and glass products, where Chinese imports grew faster than other countries in the 2008-09 period.
The ASSOCHAM survey covered 1,500 traders manufacturing various Holi products in north India, where Chinese pichkaris have taken over almost 95 per cent of the north Indian market. As a result, almost 10 lakh Indians have lost their jobs, the survey said. Another ASSOCHAM survey had noted that import of ceramic products from China, which amount to about Rs 2,700 crore, have captured almost 64 per cent of the overall imports. According to the study, there has been a huge increase in the rate of imports from China.
The Department of Industrial Policy and Promotion, in 2012, had conducted a survey, which established that Chinese imports will have a negative effects on the basic and intermediate goods sectors. It suggested that India had become an easy target for exports from China owing to the fact that the manufacturing sector’s share in the GDP has remained stagnant. The large number of MSMEs in the country, makes this a major concern, which should be addressed by the Centre immediately.
