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[FONT="]“Chinese imports have thrown a spanner in the wheel of India’s economic progress per se, and the industrial sector in particular,” the parliamentary standing committee on commerce voiced in its report tabled last week.
The Committee found that Chinese manufacturers were re-routing their products through the markets of other countries that India has Free Trade Agreements (FTA) with. Straddling the South East Asia, underdeveloped members of ASEAN have served as hubs for Chinese exporters to circumvent anti-dumping and countervailing duties, it says.[/FONT]
[FONT="]It has recommended a relook at the Least Developed Countries (LDC) arrangements and joint verification/ certification mechanism with the partner countries.
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https://www.business-standard.com/a...-economy-the-hard-numbers-118072800622_1.html[/FONT]
The Committee found that Chinese manufacturers were re-routing their products through the markets of other countries that India has Free Trade Agreements (FTA) with. Straddling the South East Asia, underdeveloped members of ASEAN have served as hubs for Chinese exporters to circumvent anti-dumping and countervailing duties, it says.[/FONT]
[FONT="]It has recommended a relook at the Least Developed Countries (LDC) arrangements and joint verification/ certification mechanism with the partner countries.
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| Sectors that have been impacted | ||
| Industry | Key number and how badly it hurts | Recommendations |
| Pharmaceuticals | 1,200%: In the life-saving drugs category, the dependence on Chinese imports is as much as 90 per cent. As much as 75% of the APIs (Active Pharmaceutical Ingredients) used in the formulations of essential drugs in the National List of Essential Medicines (NLEM) are sourced from China.China has increased the prices of bulk drugs 11-fold, or 1,200 per cent, during last two years. | Revive India’s fermentation based API capability. |
| Solar | 90%: Chinese solar imports form 90% of the India’s market share directly or indirectly through their offshore companies across South East Asia. Further, its dumping prices in India are lower than that of the price at which they sell in Japan, Europe or the US.Under the Special Incentive Package Scheme, no domestic manufacturer has got any capital subsidy till now. | Domestic industry must pursue innovation that will help in further reduction in price per unit.Anti-dumping duty may be levied in a differential manner to facilitate level pegging for domestic industry. |
| Textile | 35%: Cheap Chineseimports have resulted in 35 per cent closure of power looms in Surat and Bhiwandi, the report notes.It fires a salvo at the GST structure, stating that taxing synthetic fibres at 18 per cent, yarns at 12 per cent and fabrics at 5 per cent has caused unintended benefit to China resulting in increased imports of fabric from there. | Need to look at the LDC arrangements wherein imports from LDCs are fully exempt.Increase the customs duty on garment imports.Modernize the power loom and handloom sector for mass production with quality. |
| Toys | 85%: About 85-90 per cent of toy market space is commanded by Chinese products, the report says. It has affected 50 per cent of the domestic toy industry.Low-priced Chinese toys are either mass-produced or are rejects from other countries and are diverted to Indian sub-continent/ Africa. Further, Chinese toys are toxic in high proportion, it says. | Issue quality control order (QCO) for toys and ensure toxic and cheap quality Chinese toys do not enter the country.Import of finished toy products from China be banned |
| Bicycles | 58%: Bicycle imports from China saw a rise of 58 per cent in volume and 47 per cent in value in April to October 2017 over the previous year.Further, under-invoiced bicycles constitute 85% per cent of the total bicycle imports from China in 2017-18.Apart from affecting bicycle manufacturers, it is gradually killing the unorganized industry of small bicycle parts manufacturers who provide employment to many skilled and unskilled workers. | Carry out detailed analysis of the customs data in order to unravel the modus operandi of the unscrupulous importers involved and curb the entry of under-valued Chinese bicycles into the country. |
| Source: Impact of Chinese Goods on Indian Industry, 145th report of Parliamentary standing committee on commerce |
https://www.business-standard.com/a...-economy-the-hard-numbers-118072800622_1.html[/FONT]
