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.