China losing cost edge good news for India

The rise in the prices of imported raw materials and umbrellas may have made the product more expensive for Indian buyers. But it is good news for Indian umbrella makers who have been braving  the onslaught of cheap Chinese imports. Many manufacturers said that with labour costs in China going up, India could, for the first time, look at the prospect of umbrella exports.

“This is an opportunity to look at international markets. Unfortunately, we do not have mass production facilities. Manufacturers are now adding production capacity,” said Rajesh Chopra, of Sagar Sons which owns the ‘Happy’ brand, also vice-president of the Umbrella Manufacturers and Traders Association. “While we have not been able to compete with cheaper Chinese umbrellas, Indian manufacturers offer the best quality in the medium price range,” he said.

As they look at export prospects, umbrella manufacturers have also asked the Union commerce ministry to put them in the ‘focus product’ scheme that will make them eligible for incentives like duty drawbacks.