Small businessmen are incurring losses due to imports of umbrellas, toys from China; GTRI report claims
The country's small and medium-sized businesses are suffering massive losses as a result of increased imports of goods from China such as umbrellas, toys, clothing, and musical instruments. Many of these products are manufactured in domestic markets. According to the GTRI report, from January to June 2024, India exported goods worth only $8.5 billion. Imports stood at $50.4 billion. That is, there is a trade deficit of $41.9 billion.
The Global Trade Research Initiative (GTRI) said in a report released on Sunday, low exports and high imports make China India's largest trade deficit partner. GTRI founder Ajay Srivastava said China's share in India's imports of industrial goods is 29.8 percent. India should invest in intensive manufacturing to reduce dependence on imports of critical industrial products from China.
He said, cheap Chinese goods have made it difficult for small and medium enterprises (MSMEs) to compete. They are struggling to survive. Due to this, some MSMEs had to close or reduce operations. Easy access to low-cost Chinese products has made it difficult for them to move forward. These challenges affect job creation and economic growth in India.
China provides 95.8 percent of India's umbrellas and sun shades ($31 million) and 91.9% of artificial flowers. Aside from that, it provides glassware ($521 million, 59.7 percent), leather goods such as handbags ($120 million, 54.3 percent), and toys ($120 million, 52.5 percent). This has a serious impact on domestic manufacturers. Aside from that, Indian MSMEs are struggling to compete with China in industries such as furniture, bedding, and lighting.
India's business increased in 151 countries, including the United States and the Netherlands, from January to June. In contrast, 75 countries, including China and Russia, have reduced their trade deficits. According to GTRI, India does not face a trade deficit as a result of crude oil and coal imports.
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According to the Global Trade Research Initiative (GTRI), between January and June 2024, 55.8 percent was exported to 151 countries. Imports were only 16.5 percent. The highest trade surplus was with the US ($ 21 billion) and the Netherlands ($ 11.6 billion). There was a trade deficit with 75 countries. 44.2 percent of exports were to them. Imports were 83.5 percent. This resulted in a loss of $ 185.4 billion.
The report released on Sunday said, India should focus on reducing imports of industrial goods, especially from countries like China, as this can threaten India's economic sovereignty. This situation requires reducing dependence on specific imports and strengthening domestic production.
GTRI founder Ajay Srivastava said, India should also be cautious about the countries from which it mainly imports gold, silver and diamonds. In the budget, the duty on these has been reduced from 15 percent to six percent. The highest import bill of such a country is in crude oil. On the other hand, India has definitely tried to reduce imports by using dumping duty on Chinese goods, but even after that, the country's maximum imports also come from China.
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