Home / Knowledge / News / Textiles / Chinese imports hurt SMEs, FICCI Survey

Chinese imports hurt SMEs, FICCI Survey

15
Jun '09
Indian Small and Medium Enterprises (SMEs) are caught in a vice-like grip of monumental proportions. While the global economic slowdown and weakening domestic demand are affecting companies across sectors, the SMEs are up against rising imports from China which are reaching Indian markets at prices lower by 10-70% of their Indian counterparts, according to a FICCI Survey.

Trade and industry have reported that with western markets losing their appetite for imports, Chinese manufacturers are increasingly looking at alternative markets to offload their wares. India is an obvious first choice in such a scenario given its geographical proximity and the fact that it is still growing at an appreciable 6.5% to 7% rate.

The FICCI Survey reveals that close to 70% of the participating small and medium businesses are feeling the heat in the domestic market due to rising imports from China. In fact, close to two thirds of the surveyed enterprises reported that they have been seriously injured because of competition from Chinese products whose landed price in the Indian market could be lower by 10% to 70% as compared to prices of similar Indian products.

The list of industry segments that have been impacted by this onslaught includes processed food items such as honey, light engineering goods such as power presses, welding machines and printing machinery, heavy engineering goods such as high speed diesel engines, chemicals and chemical products such as chlor alkali, soda ash, ammonium chloride and metal products such as auto components, to name a few.

Companies that participated in the FICCI Survey mentioned that the price gap between the Indian products and Chinese products is huge and difficult to explain. Interestingly, India has not offered the 'market economy' status to China, as there are serious distortions and lack of transparency in the pricing of products that come out of any Chinese factory.

While competing with Chinese products on the price front may not be an easy task, many Indian companies that participated in the survey drew attention to quality and safety related aspects of Chinese products. An overwhelming majority was of the opinion that imports from China must clear quality and safety norms before these are allowed to be marketed in India.

Immediate imposition of severe testing requirements on imports from China is a must as these include basic items of consumption and even vaccines. Feedback gathered by FICCI shows that in the year 2008 there has been a substantial rise in imports to India from China with almost 75% of the companies surveyed reporting that they have seen erosion of market share in the domestic market in 2008 compared to the previous year.

Companies are apprehensive that as the Chinese government gives more incentives to boost exports, which are the mainstay of the Chinese economy, imports into India and other neighboring countries would only go up. To deal with the over the counter export subsidies that Chinese manufacturers enjoy, companies feel that the anti-dumping investigations for imports from China need to be beefed up and decisions taken at a quick pace.

Click here to view more:

Federation of Indian Chambers of Commerce and Industry


Must ReadView All

Pic: Photomall | Dreamstime.com

Fashion | On 2nd Dec 2021

Fashion sector to recover in 2022, supply chain main challenge: Report

The global fashion industry is set for recovery in 2022, with sales...

Pic: Albert Karimov | Dreamstime.com

Apparel/Garments | On 2nd Dec 2021

Germany offers financial support to garment workers in Laos

Nearly 21,000 Lao garment workers affected by the COVID-19 pandemic...

Rajive Ranjan (left), Managing Director, Techno Design GmbH and Technocian Fashions, with Oliver Hein, COO, s.Oliver Group. Pic: PDS Multinational Fashions Limited

Apparel/Garments | On 2nd Dec 2021

PDSMFL (BSE:538730) to source for s.Oliver from India, Sri Lanka

India-based PDS Multinational Fashions Limited (listed on Bombay...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Biggest learning was adaptability

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Benedetta Terraneo,

Benedetta Terraneo

Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...

G Tumbarello,

G Tumbarello

Lilly + Sid is an award-winning organic children's clothing company from...

Akram Tariq Khan,

Akram Tariq Khan

E-commerce brand YourLibaas meaning "garment or attire" in Udru, was...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Dr. Sean Blamires, Evolution and Ecology Research Centre

Dr. Sean Blamires
Evolution and Ecology Research Centre

Using spider silk for clothing may not seem to be an attractive...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Sunita Shanker, Label Sunita Shanker

Sunita Shanker
Label Sunita Shanker

Inspired by the rich traditional crafts of India, Sunita Shanker’s work is ...

Manish Malhotra, Label Manish Malhotra

Manish Malhotra
Label Manish Malhotra

A multitalented designer and founder of an eponymous label, Manish...

Gaurang Shah, Label Gaurang Shah

Gaurang Shah
Label Gaurang Shah

Hyderabad based designer <b>Gaurang Shah</b>, has been traversing the...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search