Twitter
Advertisement

India's manufacturing industry ready to stage a comeback against Chinese imports

The Indian tiger seems to be finally waking up from its deep slumber. The country that saw thousands of manufacturing units down shutters amidst unbridled imports from China is now striving to stage a comeback. Prime minister Narendra Modi’s dream to make India a manufacturing hub, and, thereby, create huge job opportunities is now shared by a billion Indians.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The Indian tiger seems to be finally waking up from its deep slumber. The country that saw thousands of manufacturing units down shutters amidst unbridled imports from China is now striving to stage a comeback. Prime minister Narendra Modi’s dream to make India a manufacturing hub, and, thereby, create huge job opportunities is now shared by a billion Indians.

A Noida-based trader, who earlier owned a manufacturing unit for Diwali wares and later turned a trader of Chinese goods, is just a drop in the ocean. “Every Diwali, we now go to China and order our wares ranging from lightning items and fancy replica of Indian gods and goddesses,” he tells dna. If he is to be believed, the profit margin in trading the goods is 30-50%. Most of the factories that these traders owned are now being converted into showrooms or godowns for storing imported goods.

Jamshyd N Godrej, a former Confederation of Indian Industries (CII) president said in a statement that the future of Indian manufacturing would largely relate to serving higher level of consumer needs.   

Much after Modi unveiled his vision for a new, prosperous India in his maiden and stirring Independence Day address from the Red Fort on `Make in India’, none believes it’s an easy job. Official statistics reveal how quickly the Chinese imports to India have grown in the last couple of years. 

Imports have nearly tripled to Rs 3.13 lakh crore in 2012-13, from Rs 1.46 lakh crore in 2008-09. In 2009, a Ficci (Federation of Indian Chambers of Commerce and Industry) survey said 22 product categories imported from China which were cheaper in the range of 10-70%. Between 2009-10 and 2011-12, electronic goods import to India from China was worth $9.45 billion and $14.29 billion, respectively. Machinery worth $7.31 billion was imported in 2011-12 compared with $4.54 billion in 2009-10.

Ajay Shankar, member-secretary, National Manufacturing Competitiveness Council, believes that India has the feasibility to achieve 12-14% average manufacturing growth over the next 10 years, backed by the talent that has the potential to drive innovation and take critical decision at the micro and enterprise level. “Wares used in Indian festivals such as lights, fireworks and holi pichkari, are all being imported from China, which is affecting Indian industry. We believe that the erstwhile government’s rationalisation of import policy is a prime reason. This needs to be addressed to provide impetus to Indian industry and create employment avenues,” said Noida Entrepreneurs Association in a letter to the prime minister. “Apart from the rhetoric, we immediately need second- and third-generation reforms to be implemented at the earliest. One set of reforms has helped the bigger industries,’’ says Anil Gupta of Indian Industries Association (IIA). All eyes are now on Narendra Modi, who have raised the bar by putting huge emphasis on skills and manufacturing. “Small-scale entrepreneurs are now waiting for the action.” Venu Srinivasan, former president, CII, said the challenge is to train people and retain them as a lot of manufacturing is set to come to India.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement