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SMEs hit hard by cheap Chinese imports: FICCI
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SMEs hit hard by cheap Chinese imports: FICCI
Bangalore: Indian SMEs face challenges of cheap imports in the domestic market and declining exports since Chinese manufacturers are diverting their produce to India. According to a study by industry body FICCI, with western markets like the U.S. no longer being open to a lot of imports, Chinese manufacturers are increasingly looking at alternative markets including India to offload their wares
The study said that India is a first choice due to its geographical proximity and the fact that it is still growing at 6.5-7 percent. The Chinese products are reaching the domestic market at prices lower by 10-70 percent as compared to Indian items. Out of the 110 small and medium enterprise (SME) units surveyed, about two-thirds reported that they have been seriously affected due to competition from Chinese products, FICCI said.
Processed food units, light and heavy engineering goods such as printing machines and high speed diesel engines, chemicals and their products are some of the industry segments that have been affected. The Chamber said that `Market economy` status to China has not been offered by India since there are serious distortions and lack of transparency in the product pricing that come out of any Chinese factory.
Participants in the study said that quality and safety related aspects of Chinese products are not up to the mark. "Immediate imposition of severe testing requirements on imports from China is a must as these include basic items of consumption and even vaccines," said FICCI. It further added that, to deal with export subsidies that Chinese manufacturers enjoy, India should fasten the anti-dumping investigations for imports from China.
According to the Reserve Bank of India, India`s imports from China have almost doubled to $24.16 billion in April- December 2008-09 from $12.64 billion in the comparable period of 2006-07.
Source:
http://www.siliconindia.com/shownews/SMEs_hit_hard_by_cheap_Chinese_imports_FICC
The study said that India is a first choice due to its geographical proximity and the fact that it is still growing at 6.5-7 percent. The Chinese products are reaching the domestic market at prices lower by 10-70 percent as compared to Indian items. Out of the 110 small and medium enterprise (SME) units surveyed, about two-thirds reported that they have been seriously affected due to competition from Chinese products, FICCI said.
Processed food units, light and heavy engineering goods such as printing machines and high speed diesel engines, chemicals and their products are some of the industry segments that have been affected. The Chamber said that `Market economy` status to China has not been offered by India since there are serious distortions and lack of transparency in the product pricing that come out of any Chinese factory.
Participants in the study said that quality and safety related aspects of Chinese products are not up to the mark. "Immediate imposition of severe testing requirements on imports from China is a must as these include basic items of consumption and even vaccines," said FICCI. It further added that, to deal with export subsidies that Chinese manufacturers enjoy, India should fasten the anti-dumping investigations for imports from China.
According to the Reserve Bank of India, India`s imports from China have almost doubled to $24.16 billion in April- December 2008-09 from $12.64 billion in the comparable period of 2006-07.
Source:
http://www.siliconindia.com/shownews/SMEs_hit_hard_by_cheap_Chinese_imports_FICC
