Rising imports from China hit MSMEs hard: Parliamentary Panel
Rising imports from China have taken a heavy toll on the employment-generation potential of the manufacturing sector, especially among the micro, small and medium enterprises (MSMEs), the parliamentary standing committee on commerce said.
The major impact of Chinese imports has been felt by labour-intensive sectors like textile, steel and power. “The stainless-steel industry is a case in point, where a number of MSMEs have had to close down, particularly manufacturers of stainless steel grades of the 200 series due to Chinese imports,” the report, titled ‘Impact of Chinese goods on Indian industry,’ said.
The panel recommended that India take more stringent measures to completely protect local industries against illegitimate, protectionist and unfair trade practices used by trading partners.
However, the committee observed that imposition of anti-dumping duties against Chinese products have largely failed as these duties are relatively few compared with the amount of Chinese dumping that takes place.
The report suggested further measures to curb dumping of Chinese goods. It said that quality standards and technical regulations are potent tools to check sub-standard Chinese imports. “However, the Quality Control Orders and Compulsory Registration Orders laying down technical standards of the products being imported need strengthening,” the report said.
The committee said that the impact of Chinese imports was far reaching as downsizing and closing of industrial units would adversely impact the tax collection and Make in India program.
Source :- Dailyshippingtimes.com