New Delhi, June 14 The domestic small and medium scale enterprises (SME) are being battered by increasing imports from China, according to survey by the Federation of Indian Chambers of Commerce and Industry (FICCI). Chinese imports, competing with the domestic SMEs, are entering the local markets at prices that are 10-70 per cent cheaper than their Indian counterparts.
Almost one-third of the participating SMEs in the FICCI survey said that their market share had been eroded because of Chinese imports competing with their products in the local market. As western markets are losing their appetite for imports, Chinese manufacturers are increasingly looking towards India. Respondents of the survey were apprehensive that if the Chinese government gives more incentives to boost exports, Chinese goods in India and neighbouring countries would only go up.
Chinese products such as vacuum pumps, textile-spinning machinery, honey and many other goods are available in the domestic market at half the price of their local counterparts. Companies that took part in the FICCI survey say that to deal with this, anti-dumping investigations for Chinese imports needs to be beefed up immediately.
Source : Business Line