Port Wings, 28 Nov 2018:
Chinese Dragon, which was in deep slumber for decades, has woken up at the right time and slowly swallowing up the Indian industries.
The sector, which is haplessly staring at the Modi government at Centre for panacea, is at a critical juncture and any delay to lend a helping hand would wash away the Indian industries in Chinese current.
In the last 10 years or so, Indian markets are literally flooded with cheap Chinese products and the penetration has gone up to the level that idols of Indian Gods and Goddesses that are worshipped fervidly are being manufactured in factories of Buddhist China and lands in India freely.
The dangerous fangs of Chinese Dragon dealing a severe blow to Indian small-scale industries manufacturing toys, artificial bouquet and many more low value items.
India’s concerns to secure the future of industries in tatters, as the government busy firefighting the mess created after Doklam incursion. Indian NSA Ajit Doval is visiting China to set certain things in order so that business environment can be taken care of.
According to government estimates, India’s trade deficit with China in 2012-13 fiscal was around $41 billion with India’s exports to China were worth $13.50 billion, while imports stood at $54.32 billion.
Likewise, bilateral trade between China and India stood at $65.85 billion in 2013-14 fiscal with a trade deficit of $35 billion in favour of China.
Trade data shows that India’s major exports are cotton, copper and iron ore which account for 51% of its total exports to China. Besides, China imports so many products like granite stones, fish products and knitwears from India as raw-material, add value to them and re-exports to India and other countries.
The above statement could be better corroborated with the fact that raw materials and intermediate goods were 89% of Indian exports to China and 83% of our imports comprised capital goods and intermediate goods from China.
Major imports from China comprise mechanical and electrical machinery and their parts and organic chemicals accounting for 44 % of total imports.
With the flooding of Chinese imports into Indian markets, it has now hit hundreds of small manufacturers who are already grappling with rising production costs, high taxes, duty-free imports and lack of scale in manufacturing at home.
So, time has come for a firm step towards safeguarding the interests of Indian industries without antagonizing the Dragon. Will the Modi government take the right step?