Thursday, June 20, 2013: According to the data compiled by Directorate General of Commercial Intelligence & Statistics (DGCIS), the increased import of Chinese goods into India is impacting micro, small and medium enterprises (MSMEs). The data reveals that in eight major product categories that are predominantly manufactured by MSMEs, imports from China grew faster than their respective imports from all countries in the four years from 2008-09 to 2011-12. The eight product groups include electrical and electronics, mechanical and metallurgical products, chemicals, glass and ceramics-based products. These accounted for 54 per cent of India’s total imports from China in 2011-12. According to the ministry of MSME, there are a large number of MSMEs present in these sectors therefore, a significant proportion of Indian MSMEs are facing greater competition from China compared to the rest of the world, said the ministry.
Another study by the Department of Industrial Policy and Promotion, the basic goods and intermediate goods sectors were negatively affected by cheap Chinese imports along with some items in the capital goods and consumer goods sectors. The study said that China has become the largest source of India’s imports, with a 11.7 per cent share in total imports.
