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Impact of Chinese goods on our economy
Because of cheaper prices products made in China are becoming more popular among the Indian masses. This has had a very negative effect on our own manufacturing units and as a result many of them have had to shut shop.

There seems to be no way to escape the DRAGON!!!


Yes, the Chinese goods have invaded almost all the sectors of Indian market and seem to be bringing tougher times for the Indian Industry. Because of wide availability of cheap and apparently technologically advanced Chinese goods, many economists fear decline of local manufacturing units or the small-scale industry in India. The rise in demand and sudden popularity of Chinese products, which are available at cheaper prices, is giving nightmares to the Indian industry to the extent that they have started sticking “Made in China” stickers on their products to boost their sales.


Chinese manufacturing units produce goods on a large scale. They are using the big Indian market merely to dump their products and by doing so they are killing the Indian units. For example last year during Diwali, China made crackers were sold in the Indian market. These crackers reportedly contained Sulphur. Sulphur is more harmful than Nitrate, which is used in India to make crackers. Since the Chinese crackers were cheaper than the Indian crackers, so they managed to attract gullible and largely illiterate Indian lot. As a result the Indian cracker industry saw a decline in the revenue.


China is our major competitor in sectors like software, hardware, electronics etc. We should not allow China to dump their excess produce here. The small-scale industry (SSI) contributes 35-40 per cent to the total manufacturing in India. So it is the SSI, which suffers most because of Chinese goods. For instance, data reveals that 60 per cent of the industrial units in the industrial belts of Thane and Bhivandi near Mumbai have been closed down. Many small-scale Indian companies have stopped manufacturing their own goods as now they import them from China. That’s why many Indian workers have lost their jobs. This shows that the objective of SSIs of providing employment to the rural youth of India is defeated completely.


In the last one decade Chinese labour has developed the skills of manufacturing electronic goods like semi-conductors, telecom equipment, power equipment etc, which helped them to capture big markets of America and Europe. It is no surprise that they have been successful in capturing the Indian market too. Although Indian labour can meet these challenges by improving their skills, the Indian manufacturing scenario is hampered due to stringent and weak labour policies.


It is the high time that our political leaders change their mindset and bring about the right kind of reforms without losing precious time in endless discussions. We must take necessary steps so that we do not fall prey to the DRAGON’s designs of capturing a major share of our growth, which could prove to be a setback for our economy in the future.



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