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Made in China, sold in India - time to protect our SMEs
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Bikky Khosla | 16 Jun, 2009
As if the current gloomy situation was not enough, a new hurdle before Indian small and medium enterprises (SMEs) has now come to the fore - imports from China.
Although it's not a new phenomenon, a new study released by an industry body has now revealed that the proportion at which cheap imports from China was affecting Indian SMEs was bigger than it was believed. And if this does not set the alarm bells ringing in the government circles then nothing will, I suppose.
We all know that unlike India, China's economy is greatly export driven. Almost a year now with the demand from China's traditional markets - mainly the US and Europe - dwindling, the country, in its quest for new markets, has found a paradise in India's unprotected and open markets. And the sector which is hurt most is the SME sector with Chinese products flooding the markets with a lucrative price tag 10 to 70 percent lower than the prices of the same products manufactured in India.
But that's not all! Interestingly, there are reports that traditional handicraft items are also being manufactured by China now and sold in India.
While the question of quality has always been in doubt with anything attached to the 'made in China' tag, Indian authorities must now bring into place stringent quality checking of these goods. India will now have to ensure that imports from China clear quality and safety norms before these are allowed to be sold or marketed in the country.
With the Chinese government giving more incentives to boost its export sector, imports into India and other neighbouring countries will continue to surge. This will not only eat into India's domestic markets but also shrink India's share in global markets.
Meanwhile the anti-dumping investigations on imports from China at present are almost non-existent and slow. Unless the pace of investigations pick up, Indian companies will continue to suffer.
We all know that the Chinese price mechanism of its low-priced goods is of an artificial nature. It targets specific industries and eventually wipes them out. Now the question is, will we be able to counter this influx? A vital question that needs to be answered soon before this onslaught of cheap Chinese products takes its toll on the Indian companies, particularly SMEs.
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dumping from china
kc gaur | Wed Jul 29 08:40:28 2009
import from china means--expension of capacities of chinese companies and shrinking of our companies.our manufacturers are turning into trading companies.remember-no one can compete with government companies/govt. promoted companies.
antidumping-there is simple solution--charge more than 50%customs duty on all products exported by such countries or say who get any kind of subsidies from govt. and china gives all kind of subsidies including bank loans.this way chinese companies/govt. cannot sue Indian govt. in wto. the chineses manufacturers/exporters get all kind of raw materials on subsidised rates while in India main raw materials suppliers are private companies like petrolium products(Reliance,etc)and steel products(Tata group,etc).
Made in China Sold in India
Doren Singh | Wed Jun 24 05:07:44 2009
Dear Sir,
I am procuring some sports material from China for last few year.To study the present problem of cheap price material of all sorts are not for India alone.China sells their product the world over.Two things I understand is- 1)we ask for low price(to be made specially) products to China manufacturer,bargains a lot and you get lowest quality. 2) We are not very honest when it comes to paying required duties.Importers tries to evade or pay duties to maximum lowest possible with full coperation of Govt. officials. We should not blame China alone.They have to sell their products. The onus lie with us- let us be a little patriotic and honest for our motherland.Without this no Govt. rules can control cheap materials from China.The differences lie in our mind set up and that of a Chinese. Thank you
sir we have to do the same is made in INDIA AND SELL IN CHINA .
c.s.ramesh | Sat Jun 20 13:03:55 2009
respected sir i read your articals. Its ture that all the products come from CHINA AND SOLD IN INDIA.This is because of our GOVERNMENT OVER TAXATION . WE HAVE IMPOSSED MORE AND MORE TAXES FOR ALL PORDUCTS . Thus all the products made in INDIA IS COSTLY, Then the products made in other COUNTRIES.
Our government must tax the products only after its manufacturing in last proudcts , and cut SERVICE TAX which is and educationa cess, sec and higher eduction cess .
Its the duty of GOVERNMENT OF INDIA TO SERVICE THE PUBLIC, BECAUSE OUR GOVERNMENT IS MADE BY PEOPLE , FOR THE PEOPLE , TO THE PEOPLE. BUT OUR GOVERNMNET DOSE NOT follow such constutional rules.
It imposs all taxes on PUBLIC ,
so please follow other counties how they do for the public( is the people of the country)
but our government put BUDGET ever once and imposse huge taxess , till now we have not put budget without any tax savings . we say that we are in deficit, so we immpose tax its not fair.
we have to follow stirct and correct order way of budget, with less taxes .
sir The Government is to do services to its people , but in our country government is charging taxes for doing services to its people ( SERVICE TAX) WHATS DOES IT MEAN. so our government is doing business for its people buy impossing taxes.
if we make our taxes simplyfy we can do more exports from our country and make our COUNTRY SUPERPOWER IN THE WORLD.
Thank you
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Re: sir we have to do the same is made in INDIA AND SELL IN CHINA .
Dilip Jhaveri | Sat Jun 20 15:12:00 2009
A couple of years ago I tried to make joint venture with Chinese company to manufacture gauges in India. I met some major distributors in Mumbai. They showed how the game is played. I paid some 50% in duties to import samples, including 25% in countervailing duties that was not to be paid. A current importer buys by containers, pays bribes, but little duties. My cost of assembling or manufacturing would be higher than the imports. Conclusion: manufacturing in India is not profitable or worth the hassle. Our system puts heavy burden on SMEs.
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Made in China, sold in India - time to protect our SMEs
Michael John | Sat Jun 20 06:44:54 2009
Dear ‘Mr. B. Khosla,
This topic is of great concern. The most appropriate topic would be "Protect Our India". Any self conscious 'Citizen of India' must know about the danger 'India faces due to Import from China'. All Indian Citizens must be shared with the knowledge of potential danger from China. For a short time benefit we should not afford to kill our own economy. As the China Government is moving in all direction to check India's safety, we should awake to the situation. We need to approach some social welfare organizations to ignite movement to awaken Indian Public to refrain from buying 'Made in China' product to safe guard our own economy. If a proper approach with detailed explanation is projected to Indian Public, I am sure we will get a over whelming response from public. Our young generation is very much conscious about 'Safety of India'. It is time to start such movement as Mahatma Gandhi did in his time to product Indian Product. As Globalization is the trend our government can not take such initiative. Also Indian economy can't fight directly with China's economical power. We can’t expect Indian government to do anything much on this issue. We have to sacrifice something - in other words should not think about save some money by buying China Product – to give a bright future to our children.
Made in China, sold in India - time to protect our SMEs
L.N.Raghavan | Fri Jun 19 12:40:44 2009
Dear Mr.Bikky Khosla
Your Concern on the above suject is well understood.Government may bring measures to curb imports from china.But this will not help SME'S in India.Government must find the ways and means to help SME'S to produce goods competitive to Chinese.
Unfortunately ,though we have forums to discuss the problams of our SME's it is highly doubtful wether the solutions are reaching our SME'S.We do not see much monitoring systems to help SME'S.
It is also the responsibilty of SME'S to cooperate and understand the whole subject and work towards improving the productivity and reducing the cost.SME'S
should also involve their workers knowledge and potentials.
Government should organise the cluster
of SMES in every district.In addition to this every cluster should have Engineers,bank representatives and others to monitor the entire system.At the end, the expenditure should be born by SME'S on successful implimentation and achivement.Periodic auditing should be carried out by the Authorities.
I am very sure if we implement this, we will compete with Chinese both in terms of cost and Qality.
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Re: Made in China, sold in India - time to protect our SMEs
MAHENDRA D SONAJE | Sat Jun 20 04:54:05 2009
It is a Fact that Made in China & sold in India. But in fact the SME'S & OTHER INDUSTRIES LARGELY BUYING THE MADE IN CHINA DUE TO COST FACTOR, IT IS VERY STRANGE THAT SME'S OWN PRODUCT TO BE PURCHASED BY OTHER INDIAN MANUFACTURERS BUT THEY WILL BUY CHINESE PRODUCT TO CUT THE COST.
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Made in chinwa sold in India
GEOFF JORDON | Thu Jun 18 05:45:40 2009
I WAS AMAZED ON MY RECENT HOLIDAY/ BUSINESS VISIT TO INDIA TO PROCURE INDIAN MADE PRODUCTS ONLY TO FIND ALL THAT I WANTED MADE IN CHINA.
WAKE UP INDIA OR YOU WILL FIND YOURSELVES ANOTHER THIRD BLOCK SOCIALIST COUNTRY INSTEAD OF THE ASIAN GIANT THAT YOU ARE REPUTED TO BE.
Made in China Versus Correct Product Sourcing Methods
Theo Olifiers | Wed Jun 17 09:51:24 2009
I have just read the CEO's News letter for this month
and thought to send a quick reply.
We are all aware for many years that its very difficult to control the many types of imports these days with such a open market we now all live with across the globe.
There is a better way to deal with the problems mentioned in the CEo's article.
That is Sourcing Legimate Products thru a system that helps you in many ways.
There are many ways to source products , good and bad, as we have all learn't the hard way.
I would like to make a suggestion to those that deal with the ever increasing problem.
Below i am posting several websites links for your interest, with a company that has gone to great lengths to provide you with legimate quality and reliable product sourcing resources.
They have many videos audios and articles to study and learn from on this very subject, so that you may be better informed, before you make costly product sourcing mistakes.
I would take a serious look at Worldwide Brands as a company you can trust to help you in this area.
Please visit the links below to be better informed about your business decisions.
This is a Highly Respected Honest Company with a great Reputation, please take the links below seriously enough to provide you with the information you need.
Worldwide Brands Wholesale Source Directory:
http://www.worldwidebrands.com/?kbid=8851
Drop Ship Focus Inner Circle
http://www.worldwidebrands.com/tdsf?kbid=8851
Made in China, sold in India
Gagan Bagga | Wed Jun 17 04:54:51 2009
We also need to address another issue... of competitive pricing by Indian Manufacturers, many a times it is observed that the prices of Indian Goods are over priced. Say for eg Borosil Glass tubes used to cost Rs 500/Kg in monopolistic times, now they had to come down to realistic price of Rs 90/Kg. Can one imagine there are more such companies in India trying to make mountains of Hay while the Sun shines... Realistic prices with Quality as per standards accepted world wide is the only solution.
we need to spend some time and money to do carefule eductaion of Indian Manufacturers to Deming and juran's techniques and importance.
the basic need also exists to ensure that companies going in for certification like ISO, CE, UL CSA etc are indeed actualy competent that way. Everyone knows that ISO 9001 standards once a pride of a company manufacturing processes are now available like on the shop medals.
High time to make India Corruption free!
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Re: Made in China, sold in India
Bhabani Shanker Ganguli | Thu Jun 18 06:07:18 2009
Mr. Khoshla is absolutely right when he says that India should impose strict quality restrictions on Chinese imports-but do we have a mechanism to do so, or will it be like our anti-dumping measures?
Chinese rates have little to do with manufacturing costs, whereas Indian products have to meet manufacturing costs to enable them to put products in the market. This gives Chinese products an unfair advantage!
In the case of chinese chemicals, the specified purity levels are seldom available in the actual products but I can not say for certain if this is because the Chinese products are actually inferior, or because the Indian importers add fillers to the already cheap product!
If Indian manufacturersw overcharge for their products, they will loose the market and be forced to reduce prices. However, with China selling products at artificially low prices, it is very difficult for Indian manufacturers to compete, even against shoddy Chinese products.
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What to do?
Lammag | Wed Jun 17 02:59:39 2009
India was given the status as production costs lower than China recently, would it be helpful to compete against Chinese products? Why would India's product still more expensive compare to the Chinese? If the products are cheaper , people buy them.
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Re: What to do?
Essack | Wed Jun 17 05:17:14 2009
indian companies should convert their normal prices from rupees into dollars before quoting. Indian companies charge too much for their exports, I know what i am talking about having lived in India for a short period of time.
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Re: What to do?
Giridhar Mane | Wed Jun 17 10:07:39 2009
India has never proved its production cost lower than China since there in no stratagies to manufacture more than 100% of the forecasted figures. It is only volumes which will help lower production cost. More over, future projects as stated in India does not have any correct figures to take confident stand on volume production. Therefore India in any case will not be lesser in Production cost compared to China. Chinese Surplus production has to be one day liquidated at any cost, which is happenning in various sectors- only timing is varing.
Secondly, quality of product and its loguvilty will directly reflect on pricing. It is that small band width available to play for making your product inicially acceptable and later dupe by its life. If this idea can be understood, your purchase will be valid.
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China Rickshaw?
Roger | Wed Jun 17 00:30:32 2009
I was quite surprised to discover that the beloved Bajaj inspired Autorikshaw is now being duplicated in China. The clone is near perfect and may be on the tails of the famous Indian company. Beware of imitations!
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