Imports of goods like umbrellas, musical items from China hurting Indian MSMEs: GTRI
imports of goods such as umbrellas, toys, certain fabrics, and musical instruments are severely hurting MSMEs as many of these products are also made by domestic businesses, according to think tank GTRI. The report said that during January to June 2024, India exported goods worth only USD 8.5 billion, while imports stood at USD 50.4 billion, resulting in a trade deficit of USD 41.9 billion.
This low export and high import makes China India's largest trade deficit partner.
«China accounts for 29.8 per cent of India's industrial goods imports. India must invest in deep manufacturing to cut dependence on import of critical industrial products from China,» Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said.
He said that these imports from China are «hurting» Indian MSMEs, as many of the imported products are also made by these local businesses.
He noted that the cheaper Chinese goods make it tough for MSMEs to compete, leading to struggles for survival.
«Some MSMEs have to shut down or reduce their operations, and they find it hard to grow due to the easy access to low-cost Chinese products. These challenges affect job creation and economic growth in India,» Srivastava said.
The GTRI data analysis stated that China supplies 95.8 per cent of India's umbrellas and sun umbrellas (USD 31 million) and 91.9 per cent of artificial flowers and human hair articles (USD 14 million).
Additionally, glassware (USD 521.7 million, 59.7 per cent), leather articles including saddlery and handbags (USD 120.9
