Chinese Goods Flooding Indian Market
China is quickly going for upgrades after long years of dominating the Indian cheap market products.
Data available with the Bureau of Indian Standards (BIS) shows that over 60% of the recently registered products are “Made in China”, highlighting the eagerness of Chinese manufacturers to enhance their processes and meet Indian standards to tap into higher quality products.
From mobile phones to printers, power adapters, set top boxes, notebooks, tablets and servers, Chinese manufacturers are increasingly taking advantage of a new scheme — self-declaration conformity — for meeting Indian standards. Of the 1,574 items registered with BIS, around 960 are Chinese goods.
Impact on India
Indian small scale manufacturers have been seriously hit as they cannot match the Chinese cost leadership. They are shutting business, or converting into traders, selling Chinese goods. Demands for ban, etc have failed & are bound to fail in the long run. Market forces of economics are too strong for these weak measures! In UP, despite the strong Bareilly ‘Manjha’ makers lobby, more kids use Chinese’ manjha’ for kite flying! More such manufacturers will suffer & Chinese imports increase if we do not act fast.
Chinese Goods Flooding Indian Market: Long term Counter Strategies
India needs to counter this to realise the dream of ‘Make in India’ by taking following solid steps quickly to improve conditions in India in about 5-6 years:
- Provide cheap land quickly for manufacturing.
- Provide cheap & reliable power to industrial units.
- Revise labour laws.
- Improve ease of doing business.
- Improve road & rail transportation.