DNA Edit: Made in China - Cheap goods pose grave danger to Indian economy

The border threat from China notwithstanding, the Indian economy is in a greater danger from Chinese goods sweeping the market and killing local competition.

Since consumer is the king, local manufacturers in order to counter the Chinese onslaught are forced to lower their prices. Subsequently, a time comes when they find it impossible to sustain the business. Several small and medium-scale businesses have folded up because of this.

Even some big companies are facing similar heat. For instance, mass dumping of cheap Chinese cycles has caused big losses to India’s cycle industry. Similarly, idol manufacturers have suffered owing to the cheap idols coming from across the border.

Other sectors like the firecracker, textiles, soft toys and pharmaceuticals are also bleeding profusely. The Chinese economic aggression is undermining the much-touted Make-in-India initiative. No wonder, an alarmed Parliamentary Standing Committee on Commerce is determined to counter it through a series of measures including monitoring, surveillance and enforcement of trade remedies.

The European Union and the US too have adopted strategies to contain Chinese economic hegemony. Chinese manufactured mass-market products may be low on price but they shortchange the customer on quality. On the other hand, the Indian government must protect its own manufacturers by providing a strong safety net.

This is the sort of protectionism that all developed countries bring to the table at international summits. India cannot jeopardise its interests by kowtowing to economic powers. It should invest more in R&D to improve the quality of goods and production capabilities of industries. Without getting too caught up in businesses, the government can still show the way to Indian manufacturers.